Test Name: Class 10th

Board: CBSE Standard: 10th Subject: Social Science (sector of economy,

Money and Credit)

Student Name:__________________ Section:________ Roll No.:__________

Time: 90 Minutes Marks: 400

Attempt all questions.

1: Which of the following profession belongs to the Tertiary sector of economy?

Fisherman Farmer
Factory worker Teacher

2: Arrange the following in the correct sequence:

(i) Transporting cloth to the workshops

(ii) Sale in shops and showrooms
(iii) Spinning the yarn
(iv) Weaving of the fabric
(i) - (iv) - (iii) - (ii) (iii) - (iv) - (i) - (ii)
(iv) - (i) - (ii) - (iii) (iii) - (iv) - (ii) - (i)

3: Activities that help in the development of primary and secondary sectors come under which one of the
following sector:
Primary Secondary
Tertiary Quaternary

4: At the initial stages of development, which one of the following sectors was the most important
economic activity ?
Primary Secondary
Tertiary Quaternary

5: Activities in which natural products are changed into other forms come under which one of the
following sector ?
Primary Secondary
Tertiary Quaternary

6: The products received by exploiting natural resources come under which one of the following sectors ?
Quaternary Tertiary
Secondary Primary

7: Feature of primary sector

Choose the incorrect option from the following:

List-I List-II
(i) Courier (a) Tertiary Sector
 List-I List-II
(ii) Fisherman (b) Primary Sector
(iii) Carpenter (c) Primary Sector
(iv) Banker (d) Tertiary Sector

List-I List-II List-I List-II

(A) Courier (i) Tertiary Sector (B) Fisherman (ii) Primary Sector

List-I List-II List-I List-II

(C) Carpenter (iii) Secondary Sector (D) Banker (iv) Tertiary Sector

8: Assertion (A) : Not every good or service that is produced and sold needs to be counted to know the
total production in each sector.
Reason (R) : The value of final goods already includes the value of all the intermediate goods.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the
explanation of (A).
correctexplanation of (A).

(A) is true, but (R) is false. (A) is false, but (R) is true.

9: Assertion (A) : In India, over the forty years between 1973-74 and 2013-14, while production in all the
three sectors has increased, it has increased the most in the tertiary sector.
Reason (R) : Tertiary sector is the only organized sector in the economy so the government spends a lot
of money for creating jobs in tertiary sector.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, but (R) is true

10: Assertion (A) : Under MGNREGA 2005, those who are able to, and are in need to work in rural areas
are guaranteed 100 days of employment in a year.
Reason (R) : The Central government in India made a law implementing the right to work in about 330
districts of India.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, but (R) is true.

11: Assertion (A) : Primary sector is a backbone for secondary sector.

Reason (R) : Primary sector provides raw material to secondary sector to convert it into finished goods.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, but (R) is true

12: Assertion (A) : Indian government has launched many schemes to generate more employment
opportunities.
Reason (R) : The target to achieve 100% employment in India is still far ahead.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, but (R) is true.
13: Why is the tertiary sector becoming more important in India ? Explain.
OR
Why is the 'tertiary sector' becoming important in India ? Explain any three points.

14: “Primary sector was the most important sector of economic activity at initial stages of development.”
Evaluate the statement.

15: How does public sector contribute to the economic development of the nation ? Explain

16: How do we count various goods and services for calculating Gross Domestic Product (GDP) of a
country ?

17: Suggest any three measures through which under employment in agriculture sector can be minimized.

18: Tertiary sector is playing a significant role in the development of Indian Economy.' Justify the
statement.

19: Why is agriculture called the backbone of Indian economy ? Explain.

20: Highlight any five reasons for the importance of tertiary sector in India.
OR
Explain why service sector is gaining more importance in the global economy.
21: Which one of the following is a private sector industry?
BHEL TISCO
OIL SAIL

22: Which one of the following occupations suffers from underemployment?

Casual Labour Teacher
Bank employee Police constable

23: Column-I Column-II

(i) Organised sector (A) Railways
Tata Iron and
(ii) Public sector (B) Steel Company
Limited
Agriculture and
(iii) Private sector (C)
farming
(iv) Primary sector (D) Job security
(i)-(D), (ii)-(A), (iii) -(B), (iv)-(C) (i)-(D), (ii)-(C), (iii)-(A), (iv)-(B)
(i)-(C), (ii)-(A),(iii)-(B), (iv)-(D) (i) -(B), (ii)-(C ), (iii)-(D), (iv)-(A)

24: Analyze the information given below, considering one of the following correct options:
Sushila is a worker in garment export industry of Agra. She gets facilities like health insurance,
provident fund, overtime at a double rate, medical leave, etc. She is working in:
Tertiary sector Organised sector
Unorganised sector None of the above

25: Analyze the information given below, considering one of the following correct options:
Laxmi, owning about three hectares of unirrigated land dependent only on rain and growing crops like
jowar and arhar. All seven members of her family work in the field throughout the year. You will see
that everyone is working, none remains idle, but in actual fact their labour effort gets divided. Each one
is doing some work but no one is fully employed.
Underemployment Disguised unemployment
Seasonal unemployment Both (A) and (B).

26: Assertion (A) : Rakesh is an educated and skilled worker who earns a high monthly salary as he is
employed in a private bank in a city.
Reason (R) : All service sectors in India are growing extremely well and each individual engaged in any
kind of tertiary activity earns a high income.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, and (R) is true

27: Assertion (A) : Reliance industries is a privately owned firm.

Reason (R) : Government is a major stakeholder is

reliance industries.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false.(D) (A) is false, and (R) is true.
28: Assertion (A) : The development of agriculture and industry leads to the development of service sector.
Reason (R) : As the primary and secondary sectors develop, the demand for transport, storage
structures, banks, insurance, etc., increases.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, and (R) is true.

29: Assertion (A) : The Government of India buys wheat and rice from farmers at fair price.
Reason (R) : Public sector contributes to the economic development.
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, and (R) is true.

30: Assertion (A) : Banking sector in India falls under the category of organised sector.
Reason (R) : Terms of work are already decided in banking and employees enjoy job security
Both (A) and (R) are true and (R) is the correct
Both (A) and (R) are true, but (R) is not the correct
explanation of (A).
explanation of (A).

(A) is true, but (R) is false. (A) is false, and (R) is true.
31: Why is organized sector preferred by the employees? Explain.
OR
Why do people prefer to work in organised sector? Explain.

32: Distinguish the service conditions of organised sector with that of unorganized sector.

OR
What are the differences in the employment conditions between organised and unorganized sectors of
the economy?
OR
In what three ways is organised sector better than unorganized sector? Explain.

33: How can the workers in the unorganized sector be protected? Explain

34: ‘Public sector contributes to the economic development of India.’ Justify the statement.

35: Explain any five differences between organised and unorganised sectors.
36: What is unorganized sector? Describe the working procedure of this sector.
OR
Workers are exploited in an unorganised sector. Do you agree with this statement? Justify
your answer with five relevant points. A
OR
Define the term ‘Unorganized Sector’. Mention any six disadvantages of working in this
sector.
OR
“Workers are not exploited in organised sector”. Do you agree with the statement? Explain
reasons in support of your answer

37: Which one of the following options describe ‘Collateral’?

Double coincidence of wants Certain products for barter system
Trade in barter system Asset as guarantee for loan

38: Analyze the information given below, considering one of the following correct options:
Rita has taken a loan of ₹ 7 lakhs from the bank to purchase a car. The annual interest rate on the loan
is 14.5 per cent and the loan is to be repaid in 3 years in monthly instalments. The bank retained the
papers of the new car as collateral, which will be returned to Rita only when she repays the entire loan
with interest.
Mode of re-payment Terms of credit
Interest on loan Deposit criteria

39: Analyze the information given below, considering one of the following correct options:
Mohan is an agricultural labourer. There are several months in a year when he has no work and
needs credit to meet his daily expenses. He depends upon his employer, the landowner for credit
who charges an interest rate of 5 per cent per month. Mohan repays the money by working
physically for the landowner on his farmland.
Over the years his debt will –
increase - because of increasing interest and non- remain constant - as he is working for
payment of monthly amount. the employer but is repaying less.
reduce - as amount equivalent to his salary is being be totally repaid - as he is repaying the debt in the
counted as monthly repayment. form of physical labour.

40: Which one of the following is not a limitation of the barter system?
Lack of double coincidence of wants. Certain products can’t be divided.
Most often double coincidence of wants is
None of the above
not available.

41: Which one of the following was not a traditional form of money?
Grains Paper notes
Cattle Gold coins
42: Column A Column B
Supervises the
(i) Barter system (a)
functioning of banks
Commodity for
(ii) Debt-trap (b) commodity
exchange system
Pushes the borrower
Formal sector into a situation
(iii) (c)
loans from which
recovery is very painful
Reserve Bank of Loans from banks
(iv) (d)
India and cooperatives
(i)-(a), (ii) -(b), (iii)-(c), (iv)-(d) (i)-(b), (ii) -(c), (iii)-(d), (iv)-(a)
(i)-(d), (ii)-(c), (iii)-(b), (iv)-(a) (i)-(c), (ii)-(a), (iii)-(b), (iv)-(d)

43: Assertion (A): Banks keep a small proportion of their deposits as cash with themselves.
Reason (R): This is kept to meet the loan requirements of the people.
Both A and R are true and R is the correct Both A and R are true but R is NOT the correct
explanation of A. explanation of A.
A is true but R is false. A is false and R is true.

44: Assertion (A): Banks give loans not only to profit making businesses but also to small cultivators.
Reason (R): The RBI supervises the functioning of formal sources of loans.
Both A and R are true but R is NOT the correct Both A and R are true and R is the correct
explanation of A. explanation of A.
A is true but R is false. A is false and R is true.

45: Assertion (A): Periodically, banks have to submit information to the Finance Minister on how
much they are lending, to whom, at what interest rate, etc.
Reason (R): The RBI monitors the banks in actually maintaining cash balance.
Both A and R are true and R is the correct Both A and R are true but R is NOT the correct
explanation of A. explanation of A.
A is true but R is false. A is false and R is true.

46: Assertion (A): The facility of demand deposits makes it possible to settle payments without the use of
cash.
Reason (R): Demand deposits are paper orders which make it possible to transfer money from
one person’s account to another person’s account.

Both A and R are true and R is the correct Both A and R are true but R is NOT the correct
explanation of A. explanation of A.
A is true but R is false. A is false and R is true.

47: Assertion (A): Banks charge a higher interest rate on loans than what they offer on deposits.
Reason (R): The difference between what is charged from borrowers and what is paid to depositors is
their main source of income.

Both A and R are true and R is the correct Both A and R are true but R is NOT the correct
explanation of A. explanation of A.
A is true but R is false. A is false and R is true.
48: How do demand deposits have the essential features of money? Explain.

49: Why do we need to expand formal sources of credit in India?

50: Describe the importance of formal sources of credit in the economic development.

51: Why do banks and co-operative societies need to lend more? Explain.

52: Why is it necessary to increase a large number of banks mainly in rural areas? Explain.

53: How can money be easily exchanged for goods or services? Give example to explain.

54: How is money transferred from one bank account to another bank account? Explain with an example.

55: Why is modern currency accepted as a medium of exchange without any use of its own? Find out the
reason.

56: Why is cheap and affordable credit important for the country's development? Explain any three
reasons.
57: What are demand deposits? Explain any three features of it.
OR
Which type of deposits with the banks are called demand deposits? State some important features of
demand deposits.

58: Describe the vital and positive role of credit with examples.
OR
What is credit? How does credit play a vital and positive role? Explain with an example.

59: How can the formal sector loans be made beneficial for poor farmers and workers? Suggest any five
measures.

60: A graph given below shows the percentage of employment that is provided by the different
sectors of the economy. Analyse the graph and give answers to the given questions:

(a) Which sector has nearly doubled its employment percentage from the year 1977-78 to the
year 2017-18?

(b) Which sector provides the highest number of employees and has the least share in the
GDP? What may be the reason for that?

61: In what ways Government can increase employment in the rural sector?
62: The given table shows the engagement of the people in the organised and unorganized
sectors of the economy in the three different sectors of the economy. Analyse the given data
and answer the following questions.

Workers in Different Sectors (In millions)

Sector Organized Unorganized Total

Primary 1 232

Secondary 41 74 115

Tertiary 40 88 128
Total 82 100%

(a) Which sector employs the highest percentage of people in the unorganized sectors and
organised sectors?

(b) What are the differences between the organised and the unorganized sectors?

63: Compare the economic activities of the private sector with that of the public sector.
OR
Explain any five differences between public and private sector.

64: Krishnakant along with his four sons used to do farming and support his family. Both his
sons were good in studies so after completing their studies they got jobs in the city. Now
Krishnakant started farming along with the other two sons. After some time, Krishnakant
realized that even after the migration of his two sons, there was no effect on his agricultural
productivity. It means, more people were working in agriculture work than required. State the
consequences of over workforce in agriculture sector.

65: Describe the bad effects of informal sources of credit on borrowers.

66: Explain the role of Self-Help Groups (SHGs) in rural society.

67: Explain the significance of The Reserve Bank of India in the Indian economy.
68: Bhola Mandal is a marginal farmer who has wanted to install a tube well in his farm for a
long time. Tube well is very important for irrigation but due to lack of money he is not able to
install it. Finally, he decided to take a loan from the moneylender of the village itself. When
Bhola discussed this with his younger brother, his brother told him about the consequences
of taking loan from the moneylender. Than after Bhola changed his plan and applied for a
loan at the branch of the cooperative bank located in the village. State theconsequences of
loan from moneylenders.

69: Which one of the following sectors shows the highest share in employment in 2017-18, in
India?
Primary Secondary
Tertiary Quaternary

70: Which one of the following sectors shows the highest share in Gross Domestic Product
(GDP) in India?
Primary Secondary
Tertiary Quaternary

71: Find the odd one out from the following options:
Teacher, Doctor, Vegetable Vendor and
Tourist Guide, Barber, Tailor and Potter
Lawyer
Postman, Cobbler, Soldier and Police Indian Railways, Jet Airways, Doordarshan
Constable and Metro

72: Fill in the blanks

Sector Criteria used

Primary, Nature of
Secondary and economic activity
Tertiary
Organised and ?
Unorganised

Remember...

This type of question will help us in understanding the difference between organised and
unorganized employment activities.

1. We understand that the majority of the people in our country are engaged in unorganized
economic activities where they do not get any sort of medical benefits, leave benefits,
gratuity benefits and other sorts of benefits.

2. We analysed that the people who are working in the organised sectors have numerous
facilities which play a major role in living a fulfilled life. On the other hand, they have a great
sense of security in their lives.
Nature of Employment activities Nature of Social activities
 Nature of Production activities Nature of Political activities

73: Sushila is a worker in garment export industry of Agra. She gets facilities like health
insurance provident fund, overtime at a double rate, medical leave, etc. She is working in :
Tertiary sector Organised sector
Unorganised sector None of the above

74: There are many activities that are undertaken by directly using natural resources. For
example, the cultivation of cotton beekeeping, dairy farming, etc.
Analyse the information given above, considering one of the following correct option :
Tertiary sector Private sector
Secondary sector Primary sector

75: 20. Laxmi, owning about three hectares of unirrigated land dependent only on rain and
growing crops like jowar and arhar. All seven members of her family work in the field
throughout the year. You will see that everyone is working, none remains idle, but in actual
fact their labour effort gets divided. Each one is doing some work but no one is fully
employed.
Analyse the information given above, considering one of the following correct option :
Underemployment Disguised unemployment
Seasonal unemployment Both (A) and (B).

76: Kamal works in rice mill. Jobs here are low-paid and often not regular. There is no provision
for overtime paid leave holidays, etc. Employment is not secure. People can be asked to
leave without any reason.
Analyse the information given above, considering one of the following correct option :
Organised sector Private sector
Unorganized sector Joint sector

77: Rakesh works in a automobile unit in Gurugram. But he does not get any facility like health
insurance, medical leave provident fund, gratuity, etc.
Public sector Organised sector
Private sector Unorganised sector

78: Read the information given below and select the correct option.
Rohan has taken a loan of Rs.5 lakhs from the bank to purchase a house at 12% rate of
interest. He has to submit papers of a new house and salary record to the bank. What is this
process called?
Interest Rate Collateral
Principal Amount Instalments

79: Which of the following institutions in India prints money?

RBI FCI
SBI NITI Aayog

80: The main source of earning for the financial institutions like banks are:

Remember...

This type of question helps us in understanding the functioning of the banks and their
financial activities.
 1. We remember our father talking about visiting the bank, making deposits in the bank, or
taking a loan for a house or car from the bank.

2. We should clearly understand that banks are the most important financial institutions in
the country. We keep our money with the bank and banks give us interest on that money.

3. We should understand that the money which is deposited by the customers to the banks
is given as a loan by the banks for various activities. On these loans, the banks charge a
very high interest which is a major source of revenue for the banks.
Demand Deposits Loans
Collateral All of these

81: Mahesh is a small farmer. He has taken a loan of ` 2 lakhs from the moneylender to meet the
expenses of cultivation. The annual interest rate on the loan is very high, so he is unable to
repay the loan and he is caught in a debt. He has to sell a part of the land to pay off the debt.
Analyse the loan information given above, considering one of the following correct option :
Terms of credit Interest on loan
Debt-trap Mode of repayment

82: Megha has taken a loan of ` 6 lakhs from the bank to purchase a house. The annual interest
rate on the loan is 14 per cent and the loan is to be repaid in 12 years in monthly
installments. Megha had to submit to the bank, documents showing her employment
records and salary before the bank agreed to give her the loan.
Analyse the loan information given above, considering one of the following correct option :
Interest on loan Formal source of loan
Informal source of loan None of the above

83: A shopkeeper Sudha has to make a payment to the wholesaler and writes a cheque for a
specific amount to the wholesaler. The wholesaler takes this cheque, and deposits it in his
own account in the bank. The money is transferred form one bank account to another bank
account in a couple of days. The transaction is completed without any payment of cash.
Analyse the information given above, considering one of the following correct option :
Check payment Interest on deposits
Demand deposit Money transfer

84: In India, Banking business is regulated by ___________.

MCA NITI Aayog
RBI CBI
85: “Efficient means of transport are prerequisites for fast development of the country.” Support
the statement with examples.

86: “The pace of change in the communication sector has been rapid in modern times.” Support
the statement with examples.

87: How are the three sectors of the economy different from each other? Explain. OR
 Explain the three sectors of economic activities with the help of examples.

OR

Explain the primary, secondary and tertiary sectors by giving examples of each.

88: Ramlal used to work as a doorman in a multinational company. But this multinational
company has been closed during the COVID epidemic and Ramlal become jobless. He
started working as a daily wage labourer to earn his living. Due to temporary nature of work,
his financial condition started deteriorating. State the consequences that an unorganised
worker like Ramlal may have to face in this situation.

89: Explain any two efforts taken by the Government of India to modernise agriculture.

90: “Cheap and affordable credit is crucial for the country’s development”. Justify the
statement.

91: Distinguish between formal and informal sources of credit.

92: Who among the following takes the decision regarding saving and loan activities in the Self
Help Groups (SHGs)?
Members of Non-Governmental Organisation
Manager of a Bank
(NGO)
Local Money Lenders Members of Self-Help Group (SHG)

93: Which one of the following is an activity of the unorganised sector?

A teacher teaching in a school. A worker going to work in a big factory.
A daily wage labourer working under a
A doctor treating patients in a hospital.
contractor.

94: Why did the Indian government liberalize trade regulations in 1991?
Government wanted foreign exchange Government wanted to maintain good
equivalent to Indian Currency. relations with Western Countries.
 Government wanted Indian producers to Government wanted to provide socio-
compete in the World Market. economic justice to all.

95: Directions: In the following questions, a statement of Assertion (A) is followed by a

statement of Reason (R). Mark the correct choice as:

Assertion (A): Self-Help Groups are instrumental in promoting economic democracy.

Reasoning (R): They contribute to a more equitable distribution of economic power and
opportunities.
Both A and R are true and R is the correct Both A and R are true but R is NOT the
explanation of A. correct explanation of A.
A is true but R is false. A is false and R is true.