{"id":10534,"date":"2023-04-14T12:35:47","date_gmt":"2023-04-14T07:05:47","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=10534"},"modified":"2023-04-14T17:42:29","modified_gmt":"2023-04-14T12:12:29","slug":"ncert-solutions-for-class-10-social-science-economics-chapter-3","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-10-social-science-economics-chapter-3\/","title":{"rendered":"NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit"},"content":{"rendered":"

Money and Credit Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science<\/a> Economics Chapter 3 Money and Credit familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.<\/p>\n

Money and Credit Class 10 Questions and Answers Economics Chapter 3<\/h2>\n

Make your learning experience enjoyable by preparing from the quick links available on this page. Use the Class 10 SST Economics Chapter 3 NCERT Solutions and get to know different concepts involved. All the Solutions are covered as per the latest syllabus guidelines. Knowing the NCERT Class 10 Economics Chapter 3 Questions and Answers helps students to attempt the exam with confidence.<\/p>\n

Money and Credit NCERT Intext Questions and Answers<\/h3>\n

Let\u2019s Work These Out (NCERT Textbook page 40)<\/strong><\/p>\n

Question 1.
\nHow does the use of money make it easier to exchange things?
\nAnswer:
\nThe use of money makes it easier to exchange things because it is accepted as a medium of exchange. It serves as a unit of value and solves the problem of double coincidence of wants.<\/p>\n

Question 2.
\nCan you think of some examples of goods\/services being exchanged or wages being paid through barter?
\nAnswer:
\nIn rural areas usually foodgrains are exchanged for other crops in some cases. In urban areas, goods or services are not usually exchanged. Yes, in some government schemes, labourers are paid not in cash but in kind, for example, 7 kg of wheat for a day\u2019s work.<\/p>\n

Let\u2019s Work These Out (NCERT Textbook page 42)<\/strong><\/p>\n

Question 1.
\nM. Salim wants to withdraw \u20b9 20,000 in cash for making payments. How would he write a cheque to withdraw
\nAnswer:
\n\"NCERT<\/p>\n

Question 2.
\nTick the correct answer.
\nAfter the transaction between Salim and Prem,
\n(i) Salim\u2019s balance in his bank account increases, and Prem\u2019s balance increases.
\n(ii) Salim\u2019s balance in his bank account decreases and Prem\u2019s balance increases.
\n(iii) Salim\u2019s balance in his bank account increases and Prem\u2019s balance decreases.
\nAnswer:
\n(ii) Salim\u2019s balance in his bank account decreases and Prem\u2019s balance increases.<\/p>\n

\"NCERT<\/p>\n

Question 3.
\nWhy are demand deposits considered as money?
\nAnswer:
\nDemand deposits are considered as money because they can be withdrawn when required and the money withdrawn can be used for making payments.<\/p>\n

Let\u2019s Work These Out (NCERT Textbook page 44)<\/strong><\/p>\n

Question 1.
\nFill the following table.
\nAnswer:<\/p>\n\n\n\n\n\n\n
<\/td>\nSalim<\/strong><\/td>\nSwapna<\/strong><\/td>\n<\/tr>\n
Why did they need credit?<\/td>\nTo meet the working capital needs<\/td>\nTo meet the expenses of cultivation<\/td>\n<\/tr>\n
What was the risk?<\/td>\nNo risk<\/td>\nRisk of crop failure<\/td>\n<\/tr>\n
What was the out\u00adcome?<\/td>\nMade a good profit and repaid the loans<\/td>\nCaught in debt. Had to sell a part of land to pay off the debt.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Question 2.
\nSupposing Salim continues to get orders from traders. What would be his position after 6 years?
\nAnswer:
\nHe can make good profits from the sales of shoes and can use these profits to finance his future business. In due course of time, he would become well-off or self-dependent and would stop borrowing money from any source of credit.<\/p>\n

Question 3.
\nWhat are the reasons that make Swapna\u2019s situation so risky? Discuss factors – pesticides; role of moneylenders; climate.
\nAnswer:
\nSwapna is a small farmer. Being unable to meet the expenses of cultivation, she takes a loan from the moneylender. In the beginning she was very hopeful. Unfortunately the crop fails being hit by pests. Though Swapna sprays her crops with expensive pesticides, it makes little difference. Finally she fails to repay the moneylender.<\/p>\n

The moneylender proves to be an unkind man. He charges high interest rates as a result of which Swapna falls in debt. Next year she again takes loan. Although she gets a normal crop this year, the earnings are not enough to cover the previous loan. Hence, she sells a part of the land to pay off the debt.<\/p>\n

The climate is a major factor in worsening Swapna\u2019s condition. Had it favoured her, she would not have fallen in debt trap.<\/p>\n

Let\u2019s Work These Out (NCERT Textbook page 45)<\/strong><\/p>\n

Question 1.
\nWhy do lenders ask for collateral while lending?
\nAnswer:
\nIf the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment. It is, therefore, lenders ask for collateral while lending.<\/p>\n

Question 2.
\nGiven that a large number of people in our country are poor, does it in any way affect their capacity to borrow?
\nAnswer:
\nSince the poor lack collateral to offer, so they have low capacity to borrow. They usually do not go to banks or cooperatives to get loan. Instead, they take loans from moneylenders, friends, relatives, etc.<\/p>\n

\"NCERT<\/p>\n

Question 3.
\nFill in the blanks choosing the correct option from the brackets:
\nWhile taking a loan, borrowers look for easy terms of credit. This means …………… (a) ……………..\u00a0 (low\/high) interest rate ……… (b)………..\u00a0 (easy\/tough) conditions for repayment ……………… (c)…………….\u00a0 (less\/more) collateral and documentation requirements.
\nAnswer:
\n(a) low
\n(b) easy
\n(c) less.<\/p>\n

Let\u2019s Work These Out (NCERT Textbook page 47)<\/strong><\/p>\n

Question 1.
\nList the various sources of credit in Sonpur.
\nAnswer:
\nThe various sources of credit in Sonpur are-<\/p>\n