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What is money & credit class 10 Economics Chapter 3 notes?
What is money and credit class 10 notes?
What does class 10 Economics Chapter 3 mean?
Is Chapter 3 money & credit notes PDF useful for Class 10 CBSE?
Definition and Functions of Money. In order to understand the fundamentals of economics, it is imperative to have a good understanding of money. In this article, we will look at the definition of money from an economics perspective and also the various functions of money.
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Learn about the modern forms of money, currency and deposits, and how banks extend loans and charge interest. Understand the difference between formal and informal credit, and the role of self help groups for the poor.
- 2 min
- A total of 180 currencies are recognised by the United Nations.
- 1. Women can be financially independent 2. Can borrow loans without collateral 3. Loans are provided are a low-interest rate 4. Helps the rural and...
- Any property or valuable item which is accepted by the lender and is accepted as security for a loan.
- Money as a medium of exchange. Money is an item which is used as a medium of exchange. In modern economy, money is work as an intermediary. It is used as a medium of exchange for goods and services.
- Modern form of money.
- (i) Currency. Modern forms of money include currency — paper notes and coins. The modern coins are not made with the precious metals like gold, silver. The real values of the modern coins are less than its face value.
- (ii) Deposits with Banks. Deposits with Banks are also a form of money. A person can deposit in the bank by opening an account on his/her name. People need only some money at a point of time.
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- Social Science Notes
- Money: Money acts as an intermediate in the exchange process & it is called medium of exchange. In many of our day to day transactions, goods are being bought & sold with the use of money.
- Double coincidence of wants: When in the exchange, both parties agree to sell and buy each others commodities it is called double coincidence of wants.
- Demand Deposits in Bank: Deposits in the bank account that can be withdrawn on demand. People need only some currency for their day to day needs. For instance workers who receive their salaries at the end of each month, have some extra cash.
- Cheque: Paper instructing the bank to pay a specific amount from a person’s account to the person in whose name the cheque is drawn.
- Money as A Medium of Exchange
- Modern Forms of Money
- Loan Activities of Banks
- Two Different Credit Situations
- Terms of Credit
- Formal Sector Credit in India
- Formal and Informal Credit
- Advantages of Self Help Group (SHG)
- Important Questions and Answers
- The Modern Form of Money
Money is referred to as a medium of exchange because it serves as an intermediary in the exchange process.A person who has money can readily swap it for whatever commodity or service he or she desires.Indians utilised wheat and livestock as currency in the past. Following that came the use of metallic coinage, such as gold, silver, and copper coins, which lasted well into the twentieth century. Currency - paper notes and coins – are now modern forms of money. The current kinds of money - currency and deposits – are inextricably related to the mo...
Banks only hold a small amount of their deposits in cash on hand. In India, banks now maintain approximately 15% of their deposits in cash. This is retained as a reserve to pay depositors who may c...The majority of deposits are used to extend loans by banks. Loans for numerous economic activities are in high demand. On loans, banks charge a greater interest rate than they do on deposits.Banks' major source of income is the difference between what they charge borrowers and what they pay depositors.A credit (loan) arrangement is one in which the lender provides money, products, or services to the borrower in exchange for the promise of future payment. There are two types of credit situations: one is where you have a lot of money and the other is where i. In the first scenario, a person borrows money for production purposes with the promise of...
Every loan agreement stipulates an interest rate that must be paid to the lender in addition to the principal repayment. Lenders also want collateral (security) in exchange for loans. 1. Collateral is an asset that a borrower holds, such as land, a building, a vehicle, livestock, or bank savings, that the borrower uses as a guarantee to a lender un...
Credit that is both cheap and accessible is critical for the country's prosperity. The numerous forms of loans can be divided into the following categories: 1.Formal Sector Loans: Loans from the formal sector include those from banks and cooperatives. The Reserve Bank of India (RBI) is in charge of overseeing the operation of formal loan sources. B...
Formal Credit: The RBI oversees the operation of formal sources of loans, which includes banks and cooperatives. To ensure that the bank maintains a minimum cash balance and that loans are given not just to profit-making businesses and dealers, but also to small growers, small scale industries, small borrowers, and so on. Banks are required to repo...
It assists borrowers in overcoming the lack of collateral issues.SHGs are the foundations of the rural poor's organisation.People can receive loans on schedule and at a fair interest rate for a number of objectives.It assists women in becoming financially self-sufficient.1. How does the use of money make it easier to exchange things? Ans: Money is frequently characterised in terms of its three purposes or services. Money functions as a means of exchange, a store of value, and a monetary unit. 1. Money's primary role is to facilitate transactions as a medium of exchange. All transactions would have to be handled via...
If you download the Money And Credit Class 10 Notes PDF you will come to know that grains and cattle were used as a mode of exchange by the Indians in the early ages. After that period, various metallic coins such as gold, silver, copper came into existence as the medium of exchange. In the present day, the modern form of money is circulated as cur...
- 25 min
Welcome to your ultimate guide to understanding "Money and Credit" in Class 10 Economics, Chapter 3 of the Social Science syllabus. As the CBSE Class 10 board exams for the academic year 2023-24 approach, grasping the concepts of money and credit becomes increasingly crucial.
Money and Banking. Money is the commonly accepted medium of exchange. In an economy which consists of only one individual there cannot be any exchange of commodities and hence there is no role for money.
