How many marks does "Our Financial Institutions" carry in Bihar Board Class 10 Social Science?

In the Bihar Board papers of 2021–2026, this chapter carried about 2 marks and about 3 questions a year; by marks it ranks 17 in Social Science.

Which are the most important (VVI) questions of "Our Financial Institutions"?

The 5 questions above are from the board’s real papers, each with the years it was asked; the most-asked come first with their full model answers. All 5 written questions of this chapter, with answers, are in the AskMedha app.

Do the answers follow the board’s marking scheme?

BSEB does not publish a marking scheme. Each answer is written point by point on a structure derived from past papers and checked by a second, independent model; it is never called the board’s official scheme.

Bihar Board Class 10 · Social Science · Matric exam 2027

Chapter 4: Our Financial Institutions

This chapter’s questions from Bihar Board (BSEB)’s real papers of 2016–2026 — the 5 asked most often, 3 with the full model answer, 2 with how the answer begins — and objective questions with the board’s key.

marks a year (about): 2
questions a year (about): 3
rank in Social Science: #17

From 6 years of papers, 2021–2026 · full chapter-wise marks

Chapter 4 notes (PDF) →

VVI questions — the ones the board asked most (5)

Q1Long answer4 marksAsked: 2023
Briefly describe the major institutional financial institutions of Bihar state.
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Model answer · institutional finance sources, Bihar
1. 1.Commercial banks play a major role in institutional financial sources in Bihar by providing loans to the people. These banks come under the category of Financial Institutions and are governed by the state and function under the direction of Reserve Bank of India on a fixed standard. Commercial banks collect deposits from the people of Bihar and advance a part of this money as loan to the agricultural and industrial sector, thereby meeting the financial needs of the enterprise and business of the state.1 mark
2. 2.Cooperative banks provide loans to farmers in rural areas for agricultural activities at low interest rates. In the state of Bihar, there is a three-tier co-operative credit system run by the co-operative bank. The first tier is the primary cooperative credit committee in villages, the second tier is the central cooperative bank at the district level, and above these works the Bihar State Co-operative Bank, which is a Semi-Government Financial Institution working under the direction of the Reserve Bank of India.1 mark
3. 3.Primary Agricultural Credit Societies provide short-term loan facilities to farmers at the village level. These societies, also called Primary cooperative credit committees, form the base or first tier of the three-tier co-operative credit system of the state, and through this village level committee, farmers are able to obtain credit for their agricultural activities.1 mark
4. 4.Regional Rural Banks make a significant contribution to promoting rural development and financial inclusion in Bihar. These banks were established in 1975 to meet the need of small and regional farmers, artisans and people of weaker classes, and the Regional Rural Bank in Bihar was also established in the same year. Now 196 regional rural banks are functioning in the country. The amount advanced as loan by Regional Rural Banks in the state has increased over the years, as it rose from Rs. 43276 in March 1992 to Rs. 66360 in March 1996 and further to Rs. 107940 in March 2001, though they are still unsuccessful in fully meeting the needs of small and marginal farmers.1 mark
- Write the full name 'Primary Agricultural Credit Societies' or at least 'Primary cooperative credit committee' clearly for point 3.
- Mention the three-tier structure (village, district, state) while writing about Cooperative banks.
- Include the establishment year 1975 while writing about Regional Rural Banks.
Marks split from a structure derived from past papers (checked twice); not Bihar Board’s official scheme
Q2Short answer2 marksAsked: 2023
State the agency functions of commercial banks.
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Model answer · agency functions, commercial banks
1. 1.Commercial banks serve as an agent to its customers and perform the function of collection of cheque, bills and drafts on behalf of their customers.1 mark
2. 2.Under agency function, commercial banks also perform collection and repayment of loans, instalment of loans and insurance premium, and collection and distribution of interest and profit for their customers.1 mark
- Write the phrase 'Collection of cheque, bills and drafts' exactly as given.
- Mention 'insurance premium' and 'instalment of loans' in the second point to cover regular payments.
- Begin the answer by naming commercial banks as 'agent to its customers' before listing the functions.
Marks split from a structure derived from past papers (checked twice); not Bihar Board’s official scheme
Q3Short answer2 marksAsked: 2024
What is the function of financial institutions ?
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Model answer · function of financial institutions
1. 1.Financial institutions provide credit and deposit facilities for the society. These institutions advance loans for short term, medium term and long term on the basis of need, and complete the activities related to credit or money for the fulfilment of human need.1 mark
2. 2.These institutions help in economic development by converting savings into investments. Financial management for economic activities such as agriculture, industry and trade is done through financial institutions, which make available economic resources to people according to their need and demand.1 mark
- Write the exact phrase 'provide credit and deposit facilities for the society' in the first paragraph.
- Write the exact phrase 'converting savings into investments' in the second paragraph.
- Keep each paragraph short and focused only on its own point.
Marks split from a structure derived from past papers (checked twice); not Bihar Board’s official scheme
Q4Short answer2 marksAsked: 2026
What is meant by nationalization of banks?
How the model answer begins
1. Nationalization of banks means the acquisition of privately owned banks by the government.
The full answer from Medha Ma’am →
Q5Short answer2 marksAsked: 2024
What is the role of Self-Help-Group in women empowerment?
How the model answer begins
1. Self-help groups organize women of a locality together and make them self-reliant and economically independent. The members of these groups regularly deposit their small savings in the group, and this habit of savings…
The full answer from Medha Ma’am →

Objective questions with the board’s key (10)

1. Bihar Board 2026
Regional Rural Banks were established to meet the needs of which of the following ?
- (A) Marginal and small farmers ✓
- (B) Industrial houses
- (C) The moneylenders
- (D) All of these
Answer: (A)
2. Bihar Board 2026
Which of the following banks was established first ?
- (A) Bank of India
- (B) Indian Bank
- (C) Punjab National Bank ✓
- (D) Central Bank of India
Answer: (C)
3. Bihar Board 2026
At what level does the Central Co-operative Bank function ?
- (A) National level
- (B) State level
- (C) District level ✓
- (D) Village level
Answer: (C)
4. Bihar Board 2026
By what name is the Land Mortgage Bank now known ?
- (A) Regional Rural Bank
- (B) Co-operative Bank
- (C) NABARD
- (D) Land Development Bank ✓
Answer: (D)
5. Bihar Board 2026
What was the purpose of setting up of the Maclagan Committee ?
- (A) Tax Reform
- (B) Review of Cooperative ✓
- (C) Consumer protection
- (D) Reduction of unemployment
Answer: (B)
6. Bihar Board 2025
Which of the following provides long term loans ?
- (A) Primary Agricultural Credit Society
- (B) Land Development Bank ✓
- (C) Commercial Bank
- (D) None of these
Answer: (B)
7. Bihar Board 2025
When was Regional Rural Bank established?
- (A) August 1952
- (B) July 1982
- (C) October 1975 ✓
- (D) April 1980
Answer: (C)
8. Bihar Board 2025
What is the maturity period of loans obtained from capital market?
- (A) Short term
- (B) Long term ✓
- (C) Both (A) and (B)
- (D) None of these
Answer: (B)
9. Bihar Board 2025
When did co-operation become a transferred subject of provincial governments?
- (A) 1904
- (B) 1912
- (C) 1914
- (D) 1919 ✓
Answer: (D)
10. Bihar Board 2025
Which of the following is the oldest bank?
- (A) Indian Bank
- (B) Punjab National Bank
- (C) Bank of India
- (D) State Bank of India ✓
Answer: (D)

Questions parents and students ask

How many marks does "Our Financial Institutions" carry in Bihar Board Class 10 Social Science?: In the Bihar Board papers of 2021–2026, this chapter carried about 2 marks and about 3 questions a year; by marks it ranks 17 in Social Science.
Which are the most important (VVI) questions of "Our Financial Institutions"?: The 5 questions above are from the board’s real papers, each with the years it was asked; the most-asked come first with their full model answers. All 5 written questions of this chapter, with answers, are in the AskMedha app.
Do the answers follow the board’s marking scheme?: BSEB does not publish a marking scheme. Each answer is written point by point on a structure derived from past papers and checked by a second, independent model; it is never called the board’s official scheme.

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