money and credit class 10 questions and answers

Question 9. _______________ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender. “Money has made transactions easy.” Justify. Bonus: Read Money and Credit Class 10 MCQs, Extra Questions and Answers of Money and Credit. Get Money and Credit, Economics Chapter Notes, Questions & Answers, Video Lessons, Practice Test and more for CBSE Class 10 at TopperLearning. Answer: Find more@learnfatafat Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Do check out the sample questions of Introduction to Money Class 10 Video | EduRev for Class 10, the answers and examples explain the meaning of chapter in the best manner. Answer: Answer: The rate of interest is very high in informal sector. Globalisation and the Indian Economy Class 10 Important Questions with Answers Social Science Economics Chapter 4. Answer: Subjects like Science, Maths, English ,Hindi and Social Science will become easy to study if you have access to NCERT Solution for Class 10 Science , Maths solutions and solutions of other subjects. Answer In situations with high risks, credit might create further problems for the borrower. People can also start a business or set up a small scale industry. Collateral is an asset that the borrower owns such as land, building, vehicle, Answer: Social Science Class 10 Important Questions Economics Chapter 3 Money and Credit Class 10 Important Questions. Page 52: Question 1: In situations with high risks, credit might create further problems for the borrower. Answer: People often avail themselves of credit to purchase luxury items like vehicles, A.Cs, etc., which further raises their standard of living. There is no need to keep a collateral in informal sources of credit. Periodically, the banks have to submit a report to the RBI on how much they are lending, to whom and at what interest rate. Explain. Answer: “Reserve Bank of India” and “Guaranteed by the Central Government” is written on the top of a 10 rupee note. Mention any three points of distinction between formal sector loans and informal sector loans. Thus, we can say that credit has a unique role in the development of a country. The depositors can withdraw their money whenever they want. In our culture, discussing money is a social taboo and the lack of formal education about finance doesn’t help. ___________________costs of borrowing increase the debt-burden. Anonymous. Answer: (c) 14. Question 2. They avail the facilities of loans from formal sources like banks at low rate of interest. CBSE papers with answers and Money and Credit for chapter 2 Money and Credit class 12th Social Science ECO includes practice question papers with 10-12 questions in each test paper. Money is a fascinating subject and children are full of curiosity towards the topic. He has to look for a person who wants sugar and has wheat to sell. Use of money makes Let us take an example of a farmer who wants to sell wheat and wants to buy goat in lieu of that. What is collateral? For example, Salim availed credit facility to meet the working capital needs of production. Free Question Bank for 10th Class Social Science Money and Credit Short Answer Type - Money and Credit Who supervises the functioning of formal sources of loans? (i) Paper notes (ii) Treasury bill (iii) Bond (iv) Bill of exchange (h) Which bank is called lender of last resort? It can be easily exchanged with any commodity or service. Even tertiary sector needs loans to buy the latest equipments and technology. AH he has to do is to find a buyer for his shoes, who will exchange his money for shoes. It means Aman instructs his bank to pay the money to Shurti. A cheque is a paper instructing the bank to pay a specific amount from a person’s account to the person in whose name the cheque has been issued. A typical Self Help Group comprises 15-20 people from the same neighbourhood who save some money from their daily wages and collect them together. It issues guidelines for fixing rate of interest on deposits and lending by banks. Students should also check NCERT Solutions for Class 10 for other subjects. All NCERT Solutions for class It is an asset that the borrower owns and uses this as a guarantee to the lender – until the loan is repaid. exchange? A system where goods are directly exchanged without the use of money is called barter system. A 'debt trap' means: (a) inability to repay credit amount (b) ability to pay credit amount (c) overspending till no money is left (d) none of these View Solution play_arrow question_answer 69) Answer: This is your solution of Introduction to Money Class 10 Video | EduRev search giving you solved answers for the same. Answer: How can the formal sector loans be made beneficial for poor farmers and Class 10 Social Science MCQs Questions with Answers Chapter Wise PDF Download Practicing these NCERT Social Science MCQs for Class 10 CBSE with Answers Pdf will guide students to do a quick revision for all the concepts present in each chapter and prepare for final exams. It issues currency notes on behalf of the central government. Explain with examples. Back to Lesson Money Money can be defined as anything that act as medium of exchange, store of value and unit of accounting to facilitate the economic LearnFatafat Money and credit Class 10 notes for CBSE board. In the Economics Class 10 Money and Credit Chapter, you will gain a deeper understanding of how money has evolved and how different forms of currency came into existence. Credit has a unique role in the economic development of the country. What is a collateral? If formal sources of credit are increased, people will be able to borrow money at lesser interest rates and will not be liable to do any extra work for the borrower. Paper notes and Coins. How do banks play an important role in the economy of India? Banks accept deposits from number of people. Chapter 3 – ‘Money and Credit’ of the NCERT Class 10 Economics deals with one of the most important aspects of the Economy, i.e., money and credit. What are the two forms of modern currency? Describe any four advantages of Self-Help Groups for the poor. Relearn the role of a self-help group in rural areas. This problem is overcome by the introduction of money. How does money solve the problem of double coincidence of wants? Explain with an example how credit plays a vital and positive role for development. These groups provide a platform to discuss a variety of social issues of rural people. Answer: The following points sum up the functioning of Self-Help Groups: Question 28. The law legalises the use of rupee as a medium of payment and settling the transactions. Money and Credit Answers for Multiple Choice Questions. Answer : A cheque is a document issued by an account holder to the bank, instructing the bank to pay a specific amount from the issuer’s account to the person in whose name the cheque has been issued. He is much worse off than before. NCERT Solutions for Class 10th: Ch 3 Money and Credit Economics Social Studies (S.St) Page No: 52 Excercises 1. Explain any four terms of credit with examples. It could lead to increasing debt among the borrowers. Question 53. Find out the reason. Answer: c. Employers. This is known as a debt trap. Poor households are largely depend on informal sources of credit. CBSE papers with answers and Money and Credit for chapter 2 Money and Credit class 12th Social Science ECO includes practice question papers with 10-12 questions in each test paper. hat is meant by double coincidence of wants? Free PDF download of NCERT solutions for Class 10 Social Science (Understanding Economic Development) Chapter 3 - Money and Credit. The formal sector is willing to lend to the members of SHGs because of their good track record of managing the credit. However, the money will solve this problem, and the trader can sell the sacks of rice to someone who needs it and in return, buy cereals from the money he gets from the buyer of rice. (c) 13. These groups are collectively responsible for the repayment of loan. Multiple choice questions help to develop understanding of all key points of chapter. The lenders ask for a collateral before lending because: Question 35. This helps in increasing their income earning capacity and standard of living. CBSE Class 10 VBQs Economics - Money and Credit.Based on CBSE and NCERT guidelines. What are the modern forms of money? Affordable credit plays a very important role in the country’s development. How is money used as a medium of exchange? After two or three days, the money will be transferred from Aman’s account to Shurti’s account. There are around 3-5 solved test papers Also Read :- Class 10 Economics NCERT Solution. They have freed borrowers from the clutches of the moneylenders. In barter system, where goods are directly exchanged without the use of money, double coincidence of wants (i.e. Why can one not refuse a payment made in rupees in India? Especially in India, if formal sources of credit are increased, people will be able to take loans and use them for the development of the country. The currency notes on behalf of the Central Government are issued by whom? How are they emerging as an important source of Shurti will deposit the cheque in her bank. Free PDF Download of CBSE Class 10 Social Science Economics Chapter 3 Money and Credit Multiple Choice Questions with Answers. Answer: In what ways does the Reserve Bank of India supervise the functioning of banks? Answer: (a) 10. The lenders ask for a collateral before lending because: Question 39. Transactions are made in money because a person holding money can easily exchange it for any commodity or a service. If the group is regular in its savings, they can also take loan from the bank. Students will study money as a medium of exchange among people and how credit is distributed among the people in a country. NCERT solutions for class 10 Economics Chapter 3 - Money and Credit are available here in PDF for free download. But finding such a person can be difficult and time-consuming. Two different credit situations • Credit is an agreement in which is created when a person gives money and goods to the needy person with the promise of to repay that with some rate of interest. Banks and cooperatives should extend their lending activities in rural areas because: Question 24. 1. “Deposits with the banks are beneficial to the depositors as well as to the nation.” What is money? Very Short Answer Type Questions [1 Mark]. Use of money makes Explain with an example. Question 8. For payment through cheque, the payer who has an account in the bank, draws out a cheque for a specific amount. Answer: Credit is one of the most major aspects of the development of a country. Money is used as a medium of exchange because it serves as a common medium The credit activities of the informal sector should be discouraged because: Question 10. long Answer Type Questions [4/5 Marks]. Answer: Why are the deposits in the banks called ‘demand deposits’? Question 20. How does money eliminate the need for double coincidence of wants? Class 10 Economics Chapter 3 Extra Questions and Answers Money and Credit July 22, 2020 by Murali Leave a Comment CBSE Class 10 Economics Chapter 3 Extra Questions and Answers Money and Credit Pdf free download are part of Extra Questions for Class 10 Social Science . If he opts for barter system, he will have to search a person who may be interested in giving off his goat and in taking wheat. So, the money is safe with the banks. NCERT Solutions Science Maths Social Science Download NCERT Books Notes Here we have compiled the NCERT Solutions to those questions in the form of a PDF. They create self-employment opportunities by discussion within their group. The advantages of Self-Help Groups for the poor are: Question 51. They make it possible for the poor to avail timely finance without any collateral. Free PDF Download of CBSE Class 10 Social Science Economics Chapter 3 Money and Credit Multiple Choice Questions with Answers. Question 58. They provide easy loans on nominal rates that make it possible for the common man to build their own assets. 4. They keep a collateral from the borrowers for granting loans. How does credit play a vital and positive role? Crop production involves cost of seeds, fertilizers, pesticides, water, electricity, repair of equipments. These questions […] Due to this, the share of formal sector credit is higher for the richer households compared to the poorer Money is anything which has common acceptability as a means of exchange, a measure and a store of value. When a member of the group is in need of money, he/she can get the loan from the group at a low rate of interest. Going through NCERT Solutions Class 10 Economics Social Science Chapter 3: Money and Credit will surely help students to score good marks in Social Science. Apart from this chapter, the full set of NCERT Solutions for Class 10 Social Science is also provided for students exam preparation. Why do lenders ask for a collateral while lending? Some of them are: Question 12. Cheap credit would thus lead to increase in production. Why is cheap and affordable credit important for the country’s development? There is a great need to expand formal sector of credit in India because: Question 49. If the harvest gets ruined, there is a possibility that they might not be able to receive the instalments on time. 3. (a) Grameen Bank (b) Reserve Bank (c) Cooperative Bank (d) None of these. These informal sources of credit include moneylenders, agricultural traders, etc. Answer: This document is highly rated by Class 10 students and has been viewed 8557 times. It monitors the bank in maintaining the cash balance. On the other hand, if the farmer sells wheat and takes money for that, he can easily go and purchase goat with that money. To understand this, let us take an example of a marginal farmer who holds a small plot of land. a. This currency is issued on behalf of the central government, and these two are the only authorities which are responsible for issuing notes and currency in India. It would lead to higher incomes and improve the condition of the rural poor. Modern forms of money include paper notes and coins. How do they work? Explain. Money and Credit CBSE Class 10 Important Question and Answers 1. Answer: (c) 11. I would sat answers were excellent but all were not there. //]]> Reserve Bank of India supervises the functioning of formal sources of loans in India. Money can be easily withdrawn from the banks as and when required by the depositors. 5. For example, a trader wishes to sell 10 sacks full of rice and expects to get it in exchange for five sacks of cereal. The main purpose of introducing these Self Help Groups was to increase small scale employment opportunities for the rural people so that they could start a small business to earn a livelihood. Answer: In situations with high risks, credit might create further problems for the borrower. Answer: The social value attached to cheap and affordable credit is that it helps in reducing the dependence of poor on informal sources of credit. Compare formal sector loans with informal sector loans regarding interest only. They help the poor to become self-reliant in terms of savings and generating income as the decisions regarding savings are taken by the group members. Answer : The two examples of informal sector of credit are moneylenders and friends. They can be encashed by issuing cheques in the name of the person to whom the payment is to be made. CBSE Class 10 Economics Money And Credit Online Test Set A. Explain. Answer: Chapter 3 – ‘Money and Credit’ of the NCERT Class 10 Economics deals with one of the most important aspects of the Economy, i.e., money and credit. Read the best explained answers here to … He needs to keep the below-mentioned things in mind while deciding whether to borrow money from a bank or money lender: 11. Some part of that money is given out as loan and the other part is kept with the banks for making payments. NCERT Solutions for Class 10 Social Economics Chapter 3 Money and Credit. Answer: Through cheques, demand drafts, credit/debit cards, ATMs and internet banking. Money and Credit CBSE Class 10 Economics Extra Questions With Solutions October 24, 2019 by Sastry CBSE According to new CBSE Exam Pattern, MCQ Questions For Class 10 Social Science with Answers Carries 20 Marks. Available for CBSE, ICSE and State Board syllabus. Question 1. Since, money is used in the exchange process it is called a medium of exchange. Answer: Answer: Give an example to explain. Farmers generally take loans at the beginning of the season and repay the loan after harvest. Your email address will not be published. Why might banks be unwilling to lend to small farmers? (b) 4. Q. Money and Credit (CBSE CLASS X) 1. This document is highly rated by Class 8 students and has been viewed 84596 times. They include moneylenders, relatives, friends etc. What are the two categories of sources of credit? The cheque is a statement asking the bank to pay a specific amount from the person’s account to the person in whose name the cheque has been issued. Answer: Why is this necessary? hey provide easy loans on nominal rates that make it possible for the common man to build their own assets. Reserve Bank of India supervises the functioning of formal sources of credit, (id) Urban households are largely depend on formal sources of credit. Credit plays a vital and positive role in the following ways: Question 30. You will learn about credit such as types of credit, credit terms etc. But it, indeed, is a very cumbersome process. He has to look for a person who wants sugar and has wheat to sell. both in rural and urban areas of India.” Support the statement with three examples. People can open accounts in banks and banks make use of that money to fulfil the loan requirements of the people. After reading this chapter, in the end, students will find exercise questions. How is money used in everyday life? Answer: “Most of the poor households still depend on the informal sector for loans, Special provisions are made through banks for the upliftment of agriculture and industry like waiving of loans of the farmers. They provide excellent saving and investment options and also help in the growth of the nation. Required fields are marked *, NCERT Solutions for Class 10 Social Science. Rural poor and farmers have to borrow money from moneylenders at a very high rate of interest. Answer: Double Coincidence of wants: The double coincidence of wants is the major drawback of the barter system. It solves the problem of double coincidence of wants. Thus, the problem of double coincidence of wants gets solved with the use of money. These groups provide timely loans for a variety of purposes and at a reasonable rate of interest to its members. Credit plays a vital and positive role in the following ways: Question 16. NCERT Solutions for Class 6 Social Science History Chapter 1 What, Where, How and When? By serving as a medium of exchange, money removes the situation of double coincidence of wants and the difficulties associated with the barter system. (2014 D, 2011 OD) Answer: Value based questions are now being given in Class 10 Economics exams to promote morals and values in students, Students should read and understand the following VBQs to get better understanding and score good marks in exams. All questions are explained by the expert Social Science teacher and as per NCERT (CBSE) guidelines by CoolGyan.Org It helped him to meet the ongoing expenses of production, complete production on time, thereby, increasing his income. They make it possible to directly settle payments without the use of cash. Question 2. What is the name of the success story that met the credit needs of the poor, at reasonable rates, in Bangladesh? Read our model answers to understand (c) 5. For example, it is no longer necessary for a shoe manufacturer to* look for a farmer who will buy his shoes and at the same time sell him wheat. Name the agency from whom Arun took loan to meet he r expenses ... Give reasons to support your answer Ans.A. Look at a 10 rupee note. Answer: He needs to analyse whether he has all the eligible documents required by the banks to get his loan approved. The people with excess money deposit it in the banks for safety. Sometimes, if the borrowers are unable to return the loan, they can get additional loans from moneylenders. The solutions for Chapter 3 of Understanding Economic Money and Credit are given below. Answer: There are various terms in Money and Credit, which are difficult to understand without guidance. Question 14. Answer: Explain. Sometimes, due to higher rate of interest, the amount to be repaid becomes higher than the income of the borrower due to that there ig always a risk for borrowers to fall in debt-trap. Whoever charges less should be his option. Formal and Informal financial institutions for Savings and Credit General Introduction to one formal institution such as a nationalized commercial bank and a few informal institutions Local money lenders, landlords, chit Explain with suitable example. These questions will act as extra questions. “Whether credit will be useful or not, depends upon the situation.” Give two different examples in support of this statement On what basis will Manav decide whether to borrow from the bank or the moneylender? There are around 3-5 solved test papers in each chapter. Explain Deposits with the banks are beneficial to the depositors as well as to the nation in various ways. So, to capture this element for students, this chapter has been added in Class 10 Economics. The history of money and how various forms were used at different times is explained in this chapter. Manav needs a loan to set up a small business. MCQ Questions for Class 10 Social Science with Answers was Prepared Based on Latest Exam Pattern. People avail themselves of these loan facilities to increase production and income. Question 19. More lending would lead to higher incomes and encourage people to invest in agriculture, engage in business and set up small industries. That is why they are called demand deposits. No other individual is allowed to issue currency. They charge higher rate of interest and the mode of repayment is very harsh. Explain. Banks and cooperatives should expand their facility of providing loans so as to decrease dependence on informal sector. You will also love the ad-free experience on Meritnation’s NCERT Solutions. (c) 8. It is used for borrowing and lending like loan. For example, a person wants to sell sugar and buy wheat. How do the deposits with the banks become their source of income? In contrast, if in an economy, where money is used, the person who wants to sell sugar only has to look for a buyer for his sugar. Luckily, the Ch 3 Economics Class 10 NCERT Solutions are drafted in a … Explain two reasons. It ensures that banks should maintain a minimum cash balance out of the deposits they receive. What is a cheque? To find a suitable buyer to sell the sacks of rice in exchange for cereals would be very tough. The difference between what is charged from borrowers and what is paid to the depositors is the main source of income for the banks. When it comes to financial literacy, we’re not all reading on the level we should. You just clipped your first slide! //

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