Kishen

NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit

Textbook Exercises

Question 1.
In situations with high risks, credit might create further problems for the borrower. Explain.
Answer:
The problems for the borrower, in
situation with high risks, may include
(a) The borrower may have to pay interest on principal as well as an interest to the lender.
(b) The lender may resort to court proceedings.
(c) The lender may invoke security agencies, banks etc.

Question 2.
How does money solve the problem of double coincidence of wants? Explain with an example of your own.
Answer:
Money solves the problem of double coincidence of wants, a person repairs watches but he wants a shirt. It is through money, he repairs a watch and get money for his service. He goes to the market, and buys a shirt. If, let us suppose, there is no money so to act as instrument of exchange, how will the watch repairer buys-a shirt. He will have to search a person who wants his watch to be repairer, and then with money he gets, he will have to search another person who is selling shirts. Money solves the problems of the watch-maker and the seller of snirts.

Question 3.
How do banks mediate between those who have surplus money and those who need Money?
Answer:
People who have surplus money want (a) earnings on their cash they have with them. So they deposit their money in the bank and get back interest on their deposits, and their money in the bank is safe against that if they would have their money to some private individuals and risk their money. On the other hand bank gives money on loan to some one who needs money and take interest from the borrower. Thus the bank solves the problem of one who has surplus money and of those who need money.

Question 4.
Look at a 10 rupees note. What is written on top? Can You explain this statement?
Answer:
On a ten rupee note, the statement written by the Governor of the Reserve Bank of India is that: I promise to pay the bearer the sum of ten rupees.

Question 5.
Why do we need to expand formal sources of credit in India.
Answer:
We need to expand the formal sources of credit so-to reduce the dependence on informal sources of credit. Informal sources of credit have with them larger rate of interest.

Question 6.
What is the basic idea behind the SHGs for the poor? Explain in your own words.
Answer:
SHGs stand for Self Help Groups. The basic idea behind the SHGs is that the poor are able to obtain loan from their own self-organised groups, and that too at a lower rate of interest. The SHGs help promote saving among the poor.

Question 7.
What are the reasons why the banks might not be willing to lend to certain borrowers?
Answer:
The bank lends money to those who are able to give back the loan. To those who are unemployed or ill-employed, the bank would not be willing to give them loan. If it does, it may lose the interest as well as the principal amount.

Question 8.
In what ways does the Reserve Bank of India supervise the functioning of bank? Why is this necessary?
Answer:
The Reserve Bank of India supervises the functioning of the banks in numerous ways. This is necessary as well. Some of the many ways through which the RBI supervises these banks are:

1. The RBI monitors that the banks keep their account accurately;
2. The deposits of the people are kept safely
3. The RBI keeps drawing all informations from the banks the record which the banks possess.
4. The RBI supervisor the banks that they function according to the rules prescribed by it.

The idea behind the supervision of the RBI is that the people’s money lay safe; that they keep all accounts of records accurately;

that the banks function according to the guidelines prescribed by the RBI.

Question 9.
Analyse the role of credit for development.
Answer:
Money is required by the people for all that they do, especially in business, housebuilding, industries etc. Without money it is impossible to carry on with economic activities. Quite enough money, in cash, is not available. People resort to credit the role of the-credit. Is, indeed, very important. Credit helps arrange money in all economic activities, especially in development projects. Credit can be arranged through formal sources and informal sources. It is always better that the formal sources of credit should be used.

Question 10.
Manav needs a loan to set up a small business. What basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
Answer:
Manav has to arrange money if he wants to set up a business. Even small business requires a lot of money. Money can be arranged through credit. He should take loan from the bank and not borrow money from any moneylender. The rate or interest on loan from the banks is always lower than interest of interest from the moneylender.

Question 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 he terms of credit can be unfavourable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
Answer:
(a) Small farmers may not be able to pay bank the money they borrow. The banks would not take any such risk.
(b) Small farmers can borrow money from the moneylender is or from the traders or the rich people
(c) If the small farmers borrow money from the informal sources such as moneylenders or traders, the terms of credit would be unfavourable for the small farmers? They will have to pay higher rate of interest than the one if they borrow from the formal sources of credit, say, the bank or the cooperative societies.
(d) Small farmers may get credit from (i) banks, (if) cooperative/agricultural banks, (iff) cooperative societies, (iv) self-help groups (SHGs).

Question 12.
Fill in the blanks:
(1) Majority of the credit needs of the ………….. households are met from informal sources.
(2) ………….. Costs of borrowing increase the debt burden.
(3) …………… issues currency notes on behalf of the Central Government.
(4) Banks charge a higher interest rate on loans than what they offer on ……….
(5) …………. Is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.
Answer:
(1) poor
(2) Higher
(3) The Reserve Bank of India
(4) Deposits
(5) Collateral

Question 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
(d) Formal sources of credit does not include
(a) Banks
(b) Cooperatives
(c) Employers
Answer:
(i) Members
(ii) Employers.

These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit.

NCERT Solutions for Class 10 Social Science Civics Chapter 4 Gender Religion and Caste

Textbook Exercises

Question 1.
Mention four different aspects of life in which women are discriminated or disadvantaged in India.
Answer:
Some of the factors where women lag behind men are:
i) Education :
The literacy rate of women is still lower than men. Only 54% of the women are literate against 76% literacy among men. This is because a boy’s education is still preferred over sending girl child to the school. Spending money for boy’s education is considered more important than spending money on a girl’s education. Because of this very small percentages of girls go for higher education and the drop-out rate is higher among the girls.

ii) Proportion of Women in Paid Jobs :
Women still have a small share in the highly paid jobs. Even if a woman works for more number of hours than a man, her work is not given importance. This results in low paid jobs and low valued jobs for women.

iii) Preference for Male Child:
Indian parents prefer to have male child over a female child in the family. A female child is considered as a burden as the parents will have to earn for her dowry to marry her. While, a boy child is considered as an asset for the family who will earn and increase the family income. This preference has resulted in social crimes such as female-feticide where a girl child is killed even before she is born.

iv) Crime Against Women:
There are various instances of crime against women. Women are exploited and harassed at the work place and at the home. There are cases of domestic violence against women which make her unsafe even in her family.

All these factors have prevented the women from actively participating in the work outside their homes and have confined her to house. Any role played by women outside the household work is not respected and recognised by the society.

Question 2.
State different forms of communal politics with one example each.
Answer:
Communalism can take various forms in politics :
i) The most common form of communalism is in everyday religious ideas of people. People often believe that the ideas of their religion are superior to the ideas of other religions. The ideas, ideals and interests of a particular religion are given more importance. The demands of a religious group are against the demands of other religious groups.

ii) People of a particular religion often want the maximum representation of their religion in the politics. They want elected representatives in the political system from their religion. This often results in domination of those belonging to the majority community. People of the minority community, then demand a separate state for themselves

iii) Communalism in politics sometimes takes the shape of political mobilization on communal lines. It involves the use of sacred religious symbols and religious leaders to appeal to the people of that religion. It attempts to bring all the people of one religion together. The political leaders pay special attention to the demands of their own religion at the cost of the other religions.

iv) In its most ugly form, communalism leads to riots and violence. People from various religions are in opposition to each other and they use violence to show the domination of their religion.

Question 3.
State how caste inequalities are still continuing in India.
Answer:
Under the caste work is divided among people on the basis of their caste. Occupations are passed from generation to generation. Every caste group has its own occupation. Members of same caste are considered to be from the same community. They are generally not allowed to marry outside their caste and cannot even eat with the members of other castes.

SCs and STs are accorded special status by the Constitution of India. The SC communities were considered ‘Outcastes’ in the Hindu social order, they have been denied access to various resources and are given only low status work. The STs included those communities who were self sufficient and lived in hills and forests. They were not allowed to live with the rest of the society and still they are not given equal opportunities of work.

Question 4.
State two reasons to say that caste alone cannot determine election results in India.
Answer:
Politics is not only about the castes. Even though attention is given to the caste groups, the political system is not all about the caste system. The reasons are:
i) No state legislature in the country has a majority of any caste group. Every caste group has its presence in the Parliament. It means that no caste group can be ignored and every citizen’s vote is necessary to win the elections.

ii) It is not necessary that people of the same caste vote for the same political party. They have different demands and vote according to their choice. It means that no political party represents only one caste.

iii) It does not happen that there are candidates from every caste. It might happen that all the candidates are from one caste. It might also happen that there are more than one candidate from one caste and no candidate from the other caste

Question 5.
What is the status of women’s representation in India’s legislative bodies?
Answer:
In India the women’s participation in the political area is very low. The women strength in the Lok Sabha is not even 10 percent. Their share in state assemblies is as low as 5 percent. The share of women in india is behind those of several developing countries of Latin America and Africa.

One probable solution to increase the women participation in the political system is to make laws far the minimum number of seats to be filled by the women candidates.

In the Panchayats and municipalities it is legally binding to fills one-third of the seats by women candidates. This has resulted in 10 lakh elected women representatives in the local government a bodies.

Question 6.
Mention any two constitutional provisions that make India a secular state.
Answer:
The constitutional provisions that make India a secular state are as follows:
i) There is no official religion of India. Every religion is given the same importance. Even though Hindus constitute 80% of the population, all religions are treated equally by the Constitution.

ii) The Constitution gives freedom to people to follow any religion of their choice. People are free to follow, preach and propagate the ideas of any religion they like.

iii) The Constitution does not allow any discrimination on the basis of religion.

iv) The states have the powers, given by the constitution, to intervene in religious matters if they threaten the peace of the state. They are allowed to intervene to ensure equality among different religious communities.

Question 7.
When we speak of gender divisions, we usually refer to:
(a) Biological difference between men and women
(b) Unequal roles assigned by the society to men and women
(c) Unequal child sex ratio
(d) Absence of voting rights for women in democracies
Answer:
(b) Unequal roles assigned by the society to men and women

Question 8.
In India seats are reserved for women in:
(a) Lok Sabha
(b) State legislative assemblies
(c) Cabinets
(d) Panchayati Raj bodies
Answer:
(d) Panchayati Raj bodies

Question 9.
Consider the following statements on the meaning of communal politics. Communal politics is based on the belief that:
(A) One religion is superior to that of others.
(B) People belonging to different religions can happily live together as equal citizens.
(C) Followers of a particular religion constitute one community.
(D) State power can be used to established the domination of one religious group over others.
Which of the statements is/are correct?
(a) A, B, C, and D
(b) A, B, and D
(c) A and C
(d) B and D
Answer:
(c) A and C

Question 10.
Which among the following statements about India’s Constitution is wrong? It
(a) prohibits discrimination on grounds of religion
(b) gives official status to one religion
(c) provides to all individuals freedom to profess any religion
(d) ensures equality of citizens within religious communities.
Answer:
(b) gives official status to one religion

Question 11.
Social divisions based on …………… are peculiar to India.
Answer:
Caste

Question 12.
Match List I with List II and select the correct answer using the codes given below the Lists:

Answer:
b)

These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Civics Chapter 4 Gender Religion and Caste.