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      Class 10 Social Studies

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      • Class 10
      • Class 10 Social Studies
      CoursesClass 10Social StudiesClass 10 Social Studies
      • Civics
        24
        • Lecture1.1
          Power Sharing 41 min
        • Lecture1.2
          Chapter Notes – Power Sharing
        • Lecture1.3
          NCERT Solutions – Power Sharing
        • Lecture1.4
          Federalism 01 hour
        • Lecture1.5
          Chapter Notes – Federalism
        • Lecture1.6
          NCERT Solutions – Federalism
        • Lecture1.7
          Gender Caste 01 hour 04 min
        • Lecture1.8
          Chapter Notes – Gender Caste
        • Lecture1.9
          NCERT Solutions – Gender Caste
        • Lecture1.10
          Popular Struggles 01 hour 18 min
        • Lecture1.11
          Chapter Notes – Popular Struggles
        • Lecture1.12
          NCERT Solutions – Popular Struggles
        • Lecture1.13
          Political Parties 55 min
        • Lecture1.14
          Chapter Notes – Political Parties
        • Lecture1.15
          NCERT Solutions – Political Parties
        • Lecture1.16
          Democracy and Diversity 49 min
        • Lecture1.17
          Chapter Notes – Democracy and Diversity
        • Lecture1.18
          NCERT Solutions – Democracy and Diversity
        • Lecture1.19
          Outcome of Democracy 41 min
        • Lecture1.20
          Chapter Notes – Outcome of Democracy
        • Lecture1.21
          NCERT Solutions – Outcome of Democracy
        • Lecture1.22
          Challenges to Democracy 53 min
        • Lecture1.23
          Chapter Notes – Challenges to Democracy
        • Lecture1.24
          NCERT Solutions – Challenges to Democracy
      • Economics
        37
        • Lecture2.1
          Development 1 – Introduction 57 min
        • Lecture2.2
          Development 2 – Levels of Devplopment-Individual 23 min
        • Lecture2.3
          Development 3 – Levels of Development-National 32 min
        • Lecture2.4
          Development 4 – Development in Country, Type of Resources 10 min
        • Lecture2.5
          Development 5 – Levels of Devplopment-Individual_English 23 min
        • Lecture2.6
          Development 6 – Levels of Devplopment-National_English 32 min
        • Lecture2.7
          Development 7 – Development in Country, Type of Resources_English 10 min
        • Lecture2.8
          Chapter Notes – Development
        • Lecture2.9
          NCERT Solutions – Development
        • Lecture2.10
          Money and Credit 1 38 min
        • Lecture2.11
          Money and Credit 2 23 min
        • Lecture2.12
          Money and Credit 3 23 min
        • Lecture2.13
          Chapter Notes – Money and Credit
        • Lecture2.14
          NCERT Solutions – Money and Credit
        • Lecture2.15
          Sectors of Indian Economy 1- Introduction 44 min
        • Lecture2.16
          Sectors of Indian Economy 2 – Some Important Terms, Activity in Primary and Secondary Sector, Teritary Sector 01 hour 06 min
        • Lecture2.17
          Sectors of Indian Economy 3 – Devision of Sectors as Organised and Unorganised 21 min
        • Lecture2.18
          Sectors of Indian Economy 4 – Some Important Terms, Activity in Primary and Secondary Sector, Teritary Sector_English 01 hour 06 min
        • Lecture2.19
          Sectors of Indian Economy 5 – Devision of Sectors as Organised and Unorganised_English 21 min
        • Lecture2.20
          Chapter Notes – Sectors of Indian Economy
        • Lecture2.21
          NCERT Solutions – Sectors of Indian Economy
        • Lecture2.22
          Globalization of the Indian Economy 1- Globalization of the Indian Economy 01 hour 39 min
        • Lecture2.23
          Globalization of the Indian Economy 2- Economics Polices, Captalist Economy, Socialist Economy 34 min
        • Lecture2.24
          Globalization of the Indian Economy 3- Production Activity, Interlinking Production Across Countries 23 min
        • Lecture2.25
          Globalization of the Indian Economy 4 – Forien Trade and Integration of Market, 20 min
        • Lecture2.26
          Globalization of the Indian Economy 5 – Factors That Have Enabled Globalisation, Steps to Attract Foreign Investment 24 min
        • Lecture2.27
          Globalization of the Indian Economy 6 – Economics Polices, Captalist Economy, Socialist Economy_English 34 min
        • Lecture2.28
          Globalization of the Indian Economy 7 – Production Activity, Interlinking Production Across Countries_English 23 min
        • Lecture2.29
          Globalization of the Indian Economy 8 – Forien Trade and Integration of Market_English 20 min
        • Lecture2.30
          Globalization of the Indian Economy 9 – Factors That Have Enabled Globalisation, Steps to Attract Foreign Investment_English 25 min
        • Lecture2.31
          Chapter Notes – Globalization of the Indian Economy
        • Lecture2.32
          NCERT Solutions – Globalization of the Indian Economy
        • Lecture2.33
          Consumer Rights 1 – Introduction 45 min
        • Lecture2.34
          Consumer Rights 2 – Goods and Services, Unfair Trade Practices 31 min
        • Lecture2.35
          Consumer Rights 3 – Different Types of Rights 42 min
        • Lecture2.36
          Chapter Notes – Consumer Rights
        • Lecture2.37
          NCERT Solutions – Consumer Rights
      • Geography
        28
        • Lecture3.1
          Resources and Development 1 53 min
        • Lecture3.2
          Resources and Development 2 44 min
        • Lecture3.3
          Chapter Notes – Resources and Development
        • Lecture3.4
          NCERT Solutions – Resources and Development
        • Lecture3.5
          Forest and Wildlife 48 min
        • Lecture3.6
          Chapter Notes – Forest and Wildlife
        • Lecture3.7
          NCERT Solutions – Forest and Wildlife
        • Lecture3.8
          Water Resources 1 12 min
        • Lecture3.9
          Water Resources 2 49 min
        • Lecture3.10
          Chapter Notes – Water Resources
        • Lecture3.11
          Agriculture 1 01 hour 06 min
        • Lecture3.12
          Agriculture 2 10 min
        • Lecture3.13
          Chapter Notes – Agriculture
        • Lecture3.14
          Minerals and Energy Resources 1 45 min
        • Lecture3.15
          Minerals and Energy Resources 2 58 min
        • Lecture3.16
          Minerals and Energy Resources 3 49 min
        • Lecture3.17
          Minerals and Energy Resources 4 38 min
        • Lecture3.18
          Chapter Notes – Minerals and Energy Resources
        • Lecture3.19
          Lifeline of National Economy 1 37 min
        • Lecture3.20
          Lifeline of National Economy 2 26 min
        • Lecture3.21
          Lifeline of National Economy 3 40 min
        • Lecture3.22
          Lifeline of National Economy 4 29 min
        • Lecture3.23
          Lifeline of National Economy 5 33 min
        • Lecture3.24
          Chapter Notes – Lifeline of National Economy
        • Lecture3.25
          NCERT Solutions – Lifeline of National Economy
        • Lecture3.26
          Manufacturing Industries 02 hour
        • Lecture3.27
          Chapter Notes – Manufacturing Industries
        • Lecture3.28
          NCERT Solutions – Manufacturing Industries
      • History
        28
        • Lecture4.1
          The Age of Industrialization 01 hour
        • Lecture4.2
          Chapter Notes – The Age of Industrialization
        • Lecture4.3
          NCERT Solutions – The Age of Industrialization
        • Lecture4.4
          Rise of Nationalism in Europe 01 hour
        • Lecture4.5
          Chapter Notes – Rise of Nationalism in Europe
        • Lecture4.6
          NCERT Solutions – Rise of Nationalism in Europe
        • Lecture4.7
          The Making of a Global World 01 hour
        • Lecture4.8
          Chapter Notes – The Making of a Global World
        • Lecture4.9
          NCERT Solutions – The Making of a Global World
        • Lecture4.10
          Globalization – Part 1 01 hour
        • Lecture4.11
          Globalization – Part 2 42 min
        • Lecture4.12
          Work Life Leisure 01 hour
        • Lecture4.13
          The Nationalist Movement in Indo-China 1 35 min
        • Lecture4.14
          The Nationalist Movement in Indo-China 2 01 hour
        • Lecture4.15
          The Nationalist Movement in Indo-China 3 59 min
        • Lecture4.16
          Nationalist Movement in India 1 23 min
        • Lecture4.17
          Nationalist Movement in India 2 51 min
        • Lecture4.18
          Nationalist Movement in India 3 01 hour
        • Lecture4.19
          Nationalist Movement in India 4 20 min
        • Lecture4.20
          Chapter Notes – Nationalism in India
        • Lecture4.21
          NCERT Solutions – Nationalism in India
        • Lecture4.22
          Novels Society and History 1 55 min
        • Lecture4.23
          Novels Society and History 2 32 min
        • Lecture4.24
          Novels Society and History 3 50 min
        • Lecture4.25
          Print Culture and Modern World 1 01 hour
        • Lecture4.26
          Print Culture and Modern World 2 47 min
        • Lecture4.27
          Chapter Notes – Print Culture and Modern World
        • Lecture4.28
          NCERT Solutions – Print Culture and Modern World

        NCERT Solutions – Money and Credit

        Intext Questions

        Q.1     How does the use of money make it easier to exchange things?
        Sol.     Unlike the barter system, exchange by using money does not need a double coincidence of wants. Hence, money makes it easier to exchange things. Let us take example of a student who wants to sell his old books and wants to buy a guitar in lieu of that. If he opts for the barter system, he will have to search a person who may be interested in giving off his guitar and in taking old books. But finding such a person can be difficult and time consuming. On the other hand, if the student sells his books and takes money for that, he can easily go to a shop to buy a guitar.


        Q.2     Can you think of some examples of goods / services being exchanged or wages being paid through barter?
        Sol.     Barter system does exist at some degree in our society. Farmers often use this system of exchange to barter different types of farm produce. Even some friends may exchange certain items among each other. Some hawkers sell trinkets and edible stuff in lieu of old bottles and plastic containers.


        Page 45

        Q.1     Why do lenders ask for collateral while lending?
        Sol.     The collateral is a kind of surety, which the lender can hold on to. In case of de debtor failing to repay the loan, the lender can recover some money by selling the collateral.


        Q.2    Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?
        Sol.     Credit is always given after properly assessing the repayment capacity of the borrower. Since poor people do not have repayment capacity, they are usually unable to get a loan; especially from the formal sector. They get some loan from the informal sector but in that case, they often fall in debt trap because of very high rate of interest.


        Q.3     Fill in the blanks choosing the correct option from the brackets.
        While taking a loan, borrowers look for easy terms of credit. This means low (low/high) interest rate, easy (easy/ tough) conditions for repayment, less (less/more) collateral and documentation requirements.


        Page 50

        Q.1     What are the differences between formal and informal sources of credit?
        Sol.     The formal sector gives loan only after thorough check of the borrower. Suitable paperwork are done before giving the loan so that both the borrower and the creditor can resort to judicial process in case of any problem. Rate of interest is governed by the government rules when loan is given by the formal sources. In case of informal sector, rate of interest is usually very high and the borrower cannot go to the courts in case of being subjected to arm-twisting tactics by the creditor. Informal sector usually works on personal influence and relation of the borrower and creditor.


        Q.2     Why should credit at reasonable rates be available for all?
        Sol.     Credit is an important aspect of economic activity. Right from a small farmer to a big business tycoon; everyone needs to borrow at some time to improve productivity. In case of unreasonable rates, the borrower always runs the risk of falling in the debt trap which is not good for the society and the economy. Hence, reasonable rates are important for all.


        Q.3     Should there be a supervisor, such as the Reserve Bank of India that looks into the loan activities of informal lenders?Why would its task be quite difficult?
        Sol.     The informal lenders work according to their own set of rules. They seldom maintain proper records and do not reveal their transaction detail to the government authority. Most of the money involved in this is black money and the lender always wants to earn windfall profits. They will oppose every attempt to bring them into the ambit of governance. Hence, it would be very difficult for supervisor to look into the loan activities of informal sector.


        Q.4     Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?
        Sol.     The formal sector credit is available to those who have good repayment capacity. Lending money is the main source of income for banks. They cannot afford to lend to the poor and suffer losses in the bargain. Due to this, the share of formal sector credit is higher for the richer households compared to the poorer households.

        Exercise

        Q.1     In situations with high risks, credit might create further problems for the borrower. Explain.
        Sol.     In situation of high risks, credit often creates further problems for the borrower. To understand this, let us take an example of a marginal farmer who holds a small plot of land. Let us assume that the farmer borrows some money to buy seeds and fertilizers. The harvest which he gets may not be enough to meet his family’s needs. So he never comes in a position to sell the farm produce so that he can repay his loans. If some natural calamity; like flood or drought destroys the crops; it even worsens the situation for him. Finally, there is no other way than to get trapped in the never ending cycle of loans.


        Q.2     How does money solve the problem of double coincidence of wants? Explain with an example of your own.
        Sol.     Unlike the barter system, exchange by using money does not need a double coincidence of wants. Hence, money makes it easier to exchange things. Let us take example of a student who wants to sell his old books and wants to buy a guitar in lieu of that. If he opts for the barter system, he will have to search a person who may be interested in giving off his guitar and in taking old books. But finding such a person can be difficult and time consuming. On the other hand, if the student sells his books and takes money for that, he can easily go to a shop to buy a guitar.


        Q.3     How do banks mediate between those who have surplus money and those who need money?
        Sol.     Banks take deposits from different people. People, who have surplus money, maintain a healthy deposit in banks. There are many who may be looking for loan. Such people go to the bank if they want to borrow from the formal sector. The bank provides them loan from the deposit which is lying with the bank. Thus, banks serve as a conduit between those who have surplus money and those who need money.


        Q.4     Look at a 10 rupee note. What is written on top? Can you explain this statement?
        Sol.     The following statement is written on the note, “I promise to pay the bearer the sum of ten ruppes”. This is followed by the signature of the RBI Governor. This statement shows that the central bank of India has fixed a certain value on the currency note and the value applies to everybody and at everyplace in the country.


        Q.5     Why do we need to expand formal sources of credit in India?
        Sol.     Around 48% credit in India comes through the informal sector. There are many people who do not have access to the formal credit sources. Such people often fall in the hands of moneylenders who resort to all sorts of methods to suppress the poor. To help such people out of the economic mess, it is necessary to reach the formal sources of credit to them. It will also help in improving the socioeconomic conditions in villages and remote areas.


        Q.6     What is the basic idea behind the SHGs for the poor? Explain in your own words.
        Sol.     Self Help Groups are made to help those poor who do not have access to the formal sources of credit. There are various reasons for their inability to secure a loan from banks or cooperatives. These people are so poor that they fail the creditworthiness. Moreover, the amount borrowed by them is too small to even recover the cost of administration of loan. Illiteracy and lack of awareness further compounds the problems for them. The SHGs help them in providing micro finance so that they can sustain their livelihood. Moreover, SHGs also facilitate the development of a repayment culture among such people.


        Q.7     What are the reasons why the banks might not be willing to lend to certain borrowers?
        Sol.     A bank usually lends to a person who has repayment capacity. Banks avoid lending for a risky venture. These are the reasons, banks might not be willing to lend to certain borrowers.


        Q.8     In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
        Sol.     RBI is the central bank of India. It formulates policies for the banking sector in India. Proper rules and regulations are necessary for the banking system because the banks affect the overall economy in a great way. By regulating the functioning of banks, RBI not only keeps a check on the banking and finance but also on the overall economy so that economic crisis does not erupt.


        Q.9     Analyse the role of credit for development.
        Sol.     Credit plays a crucial role in development. For most of the businesses, credit becomes necessary for expansion at some time or the other. Without credit, a small company cannot be changed into a big corporate house. Farmers cannot go for large scale farming in the absence of credit. Majority of people shall never be in a position to buy a house or a car in the absence of loan. Demand of car and houses helps in developing the economy in a significant way.


        Q.10     Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
        Sol.       Manav needs to compare the rates of interest by various lenders. He also needs to compare the demand for collateral and repayment terms and conditions. The creditor who is asking for a low interest rate, less collateral and easier terms of repayment would be the preferable creditor.


        Q.11     In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
                     (a) Why might banks be unwilling to lend to small farmers?
                     (b) What are the other sources from which the small farmers can borrow?
                     (c) Explain with an example how the terms of credit can be unfavorable for the small farmer.
                     (d) 
        Suggest some ways by which small farmers can get cheap credit.
        Sol.       (a) Small farmers do not have enough assets; either in cash or kind; which can be given as collateral. There is no guarantee of regular income for the small farmer. Hence his repayment capacity would always be questioned by the bank.
                     (b) A small farmer can borrow from friends and relatives, zamindar and the local moneylender. He can also go the SHGs.
                     (c) If the creditor wants that the farmer can utilize his farm produce only after repaying the loan amount, it can be a problem for the farmer. If the creditor wants a very high interest rate or wants the interest to be paid on a monthly basis, then it can be a problem for the farmer.
                     (d) Micro-finance; on the lines of Grameen Bank of Bangladesh; can be a good way to help small farmers. Many Self Help Groups are being formed in various parts of the country to help out small farmers.


        Q.12     Fill in the blanks:
                     (i) Majority of the credit needs of the rural households are met from informal sources.
                     (ii) 
        Higher costs of borrowing increase the debt-burden.
                     (iii) RBI issues currency notes on behalf of the Central Government.
                     (iv) Banks charge a higher interest rate on loans than what they offer on deposits.
                        (v) Collateral is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.


        Q.13    Choose the most appropriate answer.
                    (i) In a SHG most of the decisions regarding savings and loan activities are taken by
                    (a) Bank.
                    (b) Members.
                    (c) Non-government organisation.
        Sol.      (b) Members

                    (ii) Formal sources of credit does not include
                    (a) Banks.
                    (b) Cooperatives.
                    (c) Employers.
        Sol.      (c) Employers

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