Page 82 - Understanding Economics for Class 10

2. Which of the following is not true regarding the inconvenience of barter exchange?
(a) Lack of double coincidence of want
(b) Absence of divisibility
(c) Difficulty in storing wealth
Goyal Brothers Prakashan
(d) Availability of money as a medium of exchange.
Ans. (d) Availability of money as a medium of exchange.

3. Which one of the following is the important characteristic of modern form of currency?
(a) It is made from precious metal
(b) It is made from thing of everyday use
(c) It is authorised by the commercial banks
(d) It is authorised by the Government of the country
Ans. (d) It is authorised by the Government of the country

4. Ram wants Laptop and sham wants mobile phone in an age of barter system. What is the
possible problem you feel they will face?
(a) Common measure of value
(b) Lack of double coincidence of wants
(c) Medium of Exchange
(d) None of the above
Ans. (b) Lack of double coincidence of wants

5. Read the following data and which category takes the maximum credit from formal sector:
Categories of Urban Households
Source of Poor Households with a Well-off Rich
Credit Households few Assets Households Households
Formal Sector 15% 47% 72% 90%
Informal Sector 85% 54% 28% 10%

(a) Poor households (b) Households with a few assets
(c) Well-off households (d) Rich households
Ans. (d) Rich households

6. What is shown in the picture given below?
(a) Informal source of credit
(b) Formal source of credit
(c) Borrowers are being exploited by moneylender
(d) Both (a) and (c)
Ans. (d) Both (a) and (c)

7. If ‘R’ wants cloth, which ‘S’ has, then ‘R’ should have a commodity that ‘S’ wants in exchange
for the cloth. In the absence of such coincidence of wants, there will be no exchange.
Identify the situation and choose the right option that will definitely help “R” and “S” to
eliminate this situation.
(a) Double coincidence of want, Exchanging commodity for commodity.
(b) Double Coincidence of want, Credit on Commodity
(c) Double coincidence of want, Loan on commodity.
(d) Double coincidence of want, Money
Ans. (d) Double coincidence of want- Money

Economics Class X E-73