In this article, we will share MP Board Class 10th Social Science Book Solutions Chapter 17 Money and Finance System Pdf, These solutions are solved subject experts from the latest edition books.
MP Board Class 10th Social Science Solutions Chapter 17 Money and Finance System
MP Board Class 10th Social Science Chapter 16 Text book Exercises
Objective Type Questions
Mp Board Class 10th Social Science Chapter 17 Question 1.
Multiple Choice Questions
(Choose the correct answer from the following)
Chapter 17 Social Science Class 10 Question (i)
The primary function of money is –
(a) Medium of exchange
(b) Storage of value
(c) Standard of deferred payments
(d) All of above
Answer:
(a) Medium of exchange
Money And Financial System Class 10 Question (ii)
The Sahukars have an important role in –
(a) Industrial finance
(b) Finance for development
(c) Agricultural finance
(d) None of above
Answer:
(c) Agricultural finance
Class 10 Social Science Chapter 17 Question (iii)
The main function of Foreign Exchange Banks is –
(a) To accept deposits
(b) To lend money
(c) Exchange of money
(d) All of above
Answer:
(d) All of above
Mp Board Class 10th Social Science Solution In English Question 2.
Fill in the blanks:
- To satisfy the wants by exchanging one commodity with another commodity is called ………….. system.
- In a financial system the financial institutions provide ………….. to other needy persons by taking money on credit.
- The maximum number of members in a self help group is …………..
- The industrial banks provide short term and long term ………….. to industries.
- The saving banks collect the ………….. of public.
Answer:
- Barter
- Money
- Twenty
- Loan
- Money
MP Board Class 10th Social Science Chapter 17 Very Short Answer Type Questions
Mp Board Solution Class 10 Social Science Question 1.
What was the main problem of Barter System?
Answer:
The main problem of barter system is:
- Fact of double coincidence
- Lack of divisibility
- Unnecessary wastage of time energy
Mp Board Solution Class 10th Social Science Question 2.
In which part of India is the ‘Chit Fund’ very popular?
Answer:
It is much popular in the villages of Southern India. There it runs in both the forms organised and unorganised. It is a sort of saving plan found in India. The members of these chit funds are made in a fixed number.
Mp Board Solution Class 10 Question 3.
What are the major difference between banks and non-banking institutions?
Answer:
Banks means Commercial banks which are scheduled under the provision of Reserve Bank of India while non-banking institutions work under private sector.
Mp Board Class 8 Social Science Solution Chapter 17 Question 4.
What is the term of loan given by Land Development Banks to farmers?
Answer:
Land Development Banks provide loan to the farmers as long term basis for the period of 15-20 years.
Mp Board Solution Class 10th Question 5.
What is the short name of the National Bank for Agricultural and Rural Development.
Answer:
NABARD.
10th Class Social 17th Lesson Question 6.
Which bank does the function of issuing notes in country?
Answer:
Reserve Bank of India.
Mp Board Solution.Com Class 10 Question 7.
In which state of the country the first mobile bank was established?
Answer:
Madhya Pradesh district Khargone.
Class 10th Mp Board Solution Question 8.
Is ICICI bank a public sector bank or private sector bank?
Answer:
ICICI is a bank of a private sector.
MP Board Class 10th Social Science Chapter 17 Short Answers Type Questions
Money And Credit Class 10 Pdf Question 1.
Which goods were used as money in ancient times?
Answer:
Metals, animals, foodgrains and cloths etc. were used as money is ancient times. These important goods are valuable to the business point of view either domestic or regional level.
Class 10th Mp Board Solution Social Science Question 2.
State the demerits of Sahukar system?
Answer:
The Sahukars play an important role in agricultural financing today. The Sahukars fulfil about 25 per cent requirements of agro financing. They also have a bad name apart from being popular. The main reason for this is their defective system of functioning in which
- High rate of interest.
- Advance interest.
- Manipulation in calerlation facts are included. Therefore the government has kept control over the Sahukars even then they have got an important role in rural areas.
Question 3.
Define money?
Answer:
According to Prof. Marshall, “Money includes all those commodities which in particular time or place undoubtedly can be accepted as consideration for goods and services as means of deferred payments.” According to Prof. Ely: “Money is that commodity which as a means of exchange can be freely transferred and ordinarily acceptable as a means of final payment of debts.”
Question 4.
What are commercial banks?
Answer:
The banks which arrange short – term loan for commercial purpose are called commercial banks. State Bank of India and its subsidiary banks are such types of banks.
Question 5.
What is meant by the finance system?
Answer:
People in their daily life need money to fulfil their daily requirements. Similarly, money is required for implementing different types of work related to industries, business and agriculture. To fulfil these requirements people, business man and farmers everyone has to take loan.
In the same way when we have income more than our need we need financing institutions to save that money safely and to earn profit from that Thus the financing institutions keeps our surplus income or saving as deposits and lend it, known as financing system. Thus the process of keeping balance between demand and supply of wealth or capital in the economy is called financing system.
MP Board Class 10th Social Science Chapter 17 Long Answer Type Questions
Question 1.
Write an article on the development of money?
Answer:
In ancient time the man too could not produce all the commodities of his requirement. Therefore, he started to exchange the goods produced by him with goods produced by other person. It is known as Barter System of exchange. This system of Barter prevailed for a long time. Several difficulties of Barter System arose with time. The major problem of this system was availability of such a person who could accept the commodity produced by a person and could make available the commodity required by him. So such goods were discovered which could be accepted by all.
In the beginning cow, goat, fish bones, skin of animals, ivory etc. were accepted as a unit of money. But this system also brought many difficulties with it. So this system inspired the use of metals. As a result the use of metal started in the form of coins, which solved many problems. The kings and emperors fixed the weight, size, colour and shape of the coin to keep check on forgery. These coins were certified by the government through stamping. Gold, silver, copper, etc. metals were extensively used as coins.
The difficulties of metallic currency arose with the time. As a result along with the development of banking system, paper, currency was also developed.Expansion of paper currency took place in various ways, such as written certificates, representative paper currency, convertible paper currency, inconvertible paper currency, etc. The development of credit money, in the form of cheque, hundi, drafts etc. took place with development of Central Bank and Commercial Bank. At present credit cards and A.T.M cards are prevailing in the form of plastic currency.
Question 2.
What are Self – Help Groups? What may be the objectives of its formation? (MP Board 2009)
Or
Write any four aims of Self – Help Groups. (MP Board 2009)
Answer:
Self – Help Group is a voluntary organisation of poor people. These groups are formed for the solutions of their problems by mutual co – operation. This group motivates it members for small savings. These savings are deposited in banks. The account of bank in which the amount is deposited is on name of the group. Generally the maximum number of members of a group is 20.
Generally the members of a group are those people who do not have any approach to the financial institutions such as bank etc. Therefore the group teaches its members that method of saving which is an appropriate method for satisfying their needs. The group makes small loans easily available to its members on lower rate of interest. These groups have played an important role in the field of empow¬ering women.
Objectives of the Formation of Self – Help Group:
Following may be the objective of formation of any Self – Help Groups:
- To develop the feeling of working together unitedly.
- To develop the habit of saving for better future among the members.
- To create the opportunity of self-employment by lending money to members.
- To develop the feeling of self-reliance in its members.
- To develop awareness towards the subjects like health, nutrition, education, domestic violence.
- To conduct welfare activities with the help of government, loans and other self – service institutions.
Question 3.
Which financial institutions are found in India? Explain.
Answer:
The following financial institutions are found in India:
Banks:
Under the financial institutions banks have special importance in the modern age. Generally banks are known as the institutions which deposit the money of people and lend money to the needy people. Today all the major economic activities are done by the means of banks. Along with the exchange of money, construction of credit is also a function of bank.
Bank such as State Bank of India, The Allahabad Bank, Canara Bank, Bank of India etc. are functioning under public sector in India.Several banks were established under private sector after the year 1991. For example, ICICI Bank, HDFC Bank, UTI Bank, Indus Bank etc. are the banks of private sector.
Insurance Companies:
Insurance is a system to provide security against the consequences of risks. Commodities, services and business activities are also insured along with human lives. Insurance companies invest the obtained amount of money in different productive works which leads to economic growth.
Sahukar (Indigeneous Banks):
Sahukar or Mahajan is that fellow who provides loan to his customers from time to time. Sahukars are two types:
- Farmers Sahukars or Zamindars.
- Commercial Sahukars:
Farmer Sahukars are those persons who mainly do farming but being rich they do the job of lending money as a secondary business. Commercial Sahukars are those whose chief business is only lending money.
Zamindars:
In the year 1793, Lord Cornwallis started this system in Bengal Zamindars were the big landlords. Their work was the collection of revenue from the farmers. They collected the revenue from the peasents and gave it to the government. Zamindars provided loan to the farmers whenever required to fulfil their needs. The rate of interest on loans provided by them to the farmers used tot .be very high. The conditions of loans provided by them were alfeo very strict.
Question 4.
What are the main types of banks? Write.
Answer:
Types of Banks are as follows:
Commercial Banks:
Commercial Banks are those type of banks which imafeke arrangements for short term loans for commercial purposes. These banks do some other banking functions also other than accepting the deposits of people and providing loans to them.
Industrial Banks:
The institutions which make arrangements of medium and long term loans for industries are called industrial banks. Apart from providing loans to the industries from themselves these banks also help them to seek capital from other resources.
Foreign Exchange Banks:
Institutions which exchange foreign currencies and make arrangements of foreign exchange for foreign trade are called Foreign Exchange Banks. These banks set up their branches in foreign countries, which make the exchange of foreign currencies simple and easy.
Agricultural Banks:
Agricultural system is different from trade and industries. Therefore its loan-related needs are different from trade and industries. This is the reason due to which agricultural banks have been established to fulfil the needs of farmers. Following L banks are fulfilling the requirement of agricultural finances:
- Agricultural Cooperative Banks.
- Land Development Banks.
- Regional Rural Banks.
National Bank for Agriculture and Rural Development:
National Bank for Agriculture and Rural Development was established on 12th July, 1982 for the purpose of making the loans available for development of agriculture. Briefly is called NABARD. It functions as the apex bank in the structure of credit in the rural areas.
Central Bank:
The central bank is the supreme institution of the banking system of any country. It has no direct relation with the people. The minting of the currency of the country is done by this bank only. It is the banker of the government. It maintains the record of all types of accounts of the government and whenever needed provides loan to the government also. It is ‘Bank of the Banks’.
International Bank:
Those banks are included in international banks, which have been established to solve the international economic problems and to provide economic help to their member countries. In this direction two institutions namely World Bank and International Monetary Fund were set up in 1945.
Question 5.
Describe the main functions of money?
Or
Write the main functions of Money (MP Board 2009)
Or
What is Money? Write its main functions? (MP Board 2009)
Answer:
The money performs several functions in the economy. The main functions of money are as follows:
1. Medium of Exchange:
The goods and services are brought and sold through money. The producer gets money by selling his commodity and then he
purchases his required goods through this obtained money.
2. Measure of Value:
At present value of every commodity and service is measured by money. Prices of all commodities and services in the market are expressed in terms of money only. It is an important function of money.
3. Transfer of Purchasing Power:
Money can be transported from one place to another. In the state of purchasing commodities from another place, the payment of its price can be done through money or bank draft, cheque, money order etc. Rupees can be transferred easily from one place to another through banks.
4. Store of Purchasing Power:
According to his nature, man saves money to deal with major crisis. Now saving for future through medium of money has become, very easy. Storing of purchase power by depositing money in banks or post offices has become very common now.
Along with this the process of lending and taking loans has become very easy now. A consumer obtains maximum satisfaction and a producer increase the quantity of his product through money only. In brief, money does several important functions in human life.
Question 6.
Discuss about the institutions which provide loan to agriculture?
Answer:
The institutions which provide loan facility to agriculture are as follows:
1. Agricultural Cooperative Banks:
This bank provides the facility of short-term loans to farmers at low rate of interest. In India the cooperative banks have three-tier structure. At the lowest village level are the Primary cooperative societies. Above these societies are district Central Cooperative banks which provide loans to these societies on demand.
Above these Central Banks are State Cooperative Banks. The State Cooperative Bank meet the loan requirements of District Central Cooperative Banks. Whenever State Cooperative Banks, need loans then National Agricultural Rural Development Bank which is also called NABARD helps them.
2. Land Development Bank:
Land Development Banks provide long term loans to farmers. These banks provide loans for a period of 15 – 20 years at a low rate of interest for land reform, for digging wells and tube wells, to purchase agricultural equipments, tractors etc. As these banks provide loans on the security of land so these banks are advantageous for the big farmers.
3. Regional Rural Banks:
The Regional rural banks were set up in 1975. These banks were set up with the main objective of providing banking facilities to the people of distant rural areas. These banks provide loans to small and marginal farmers, agricultural labourers, rural artisans, small entrepreneurs. On 30th June, 2005, 14,484 branches of regional rural banks were running in the country.
MP Board Class 10th Social Science Chapter 16 Additional Important Questions
Objective Type Questions
Question 1.
Multiple Choice Questions:
(Choose the correct answer from the following)
Question (i)
In latin Language money was known of – (MP board, 2012)
(a) Moneta
(b) Goddess Juno
(c) Pecunia
(d) Pecus
Answer:
(a) Moneta
Question (ii)
ATM means
(a) All Time Money
(b) Any Time Money
(c) Altogether Time of Money
(d) Automatic Teller Machohe
Answer:
(b) Any Time Money
Question (iii)
Which of the following institutions is the open body at various finance institution.
(a) SBI
(b) RBI
(c) NABARD
(d) CBI
Answer:
(c) NABARD
Question (iv)
Which of the following bank is called the Bank of Banks?
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) Bank of Baroda
Answer:
(c) Reserve Bank of India
Question 2.
Fill in the blanks:
- There are ……………. banks were nationalised in 1969.
- The head of Rural Bank of Bangladesh is …………….
- ……………. are the backbone of Bangladesh’s Rural Bank.
- ATM has made the banking function very …………….
Answer:
- 14
- Mohammad Yunus
- Self Help Groups
- Convenient
Question 3.
True and False type questions:
- Mahajans were the indigenous source of rural areas in ancient India.
- Thfe Central Bank of India is Reserve Bank of India.
- The second time nationalisation of banks in India was completed in the year of 1991.
- The mobile bank running in M.P. is called Laxmi Vahini.
Answer:
- True
- True
- False
- True
Question 4.
Match the Column:
Answer:
1. (b)
2. (d)
3. (c)
4. (a)
Answer in One – Two Words or One Sentence
Question 1.
Name the four important functions of money?
Answer:
Money is a matter of function for a medium, a measure, a standard and a store.
Question 2.
Mention the kinds of metallic money?
Answer:
Metallic money is classified as:
- Standard money
- Token money
Question 3.
Which system is adopted in the Indian economy?
Answer:
Barter System
Question 4.
Write the full form of ATM?
Answer:
Any Time Money
MP Board Class 10th Social Science Chapter 17 Very Short Answers Type Questions
Question 1.
What is ATM?
Answer:
A.T.M. (Any Time Money):
As it is clear by its name, A.T.M. is a system in which money can be withdrawn at any time. The A.T.M. is made of plastic and consists of a metal chip, on which all the details related to bank accounts are entered. A.T.M. has made the banking function very easy and convenient.
Question 2.
What do you mean by Laxmi Vahini?
Answer:
A mobile bank has been set up in the district of Khargone of Madhya Pradesh. This institution named ’Laxmi Vahini’ functions mobiling in a van. The capital of this institution is Rs. One crore and it provides various types of banking facilities available to villages by going from village – to – village.
Question 3.
Name the metallic money?
Answer:
Consumption goods, such as grocery, salts, fish, animals, capital goods and jwellery and gems such as shells, valuable metal are known as metallic money.
Question 4.
What do you mean by NABARD?
Answer:
The full name of NABARD is National Bank for Agriculture and Rural Development. This institution fulfils the loans given by the Land Development Banks, Cooperative Banks and Commercial Banks, etc. for tire development of agriculture and rural areas. It is supreme institution related to rural and agricultural credits.
MP Board Class 10th Social Science Chapter 17 Short Answers Type Questions
Question 1.
Discuss briefly the Rural Bank of Bangladesh.
Answer:
A solid process of rural bank have been developed in Bangladesh through Self-help Groups. There are 60 lakh people under debt in these banks who are spread in 40,000 villages of Bangladesh. This programme was started by Mohammad Yunus in 1970. These rural banks have significantly contributed for the fulfilment of loan related needs of poors. Mohammed Yunus was honoured Nobel Prize in 2006 for the same work.
Question 2.
What are the secondary functions of money?
Answer:
The secondary functions of money are as under:
1. Basis for deferred payment:
Money has made it possible and convinent that the payment of dues can be made of a later date in future.
2. Store of exchange value:
After the introduction of money it has been very convinent to accumulate income and wealth to meet future requirements.
MP Board Class 10th Social Science Chapter 17 Long Answer Type Questions
Question 1.
What is paper money? Give its kinds.
Answer:
Paper money or currency notes, printed on paper are issued by the government and legally acceptable within the country. It has the face value only and accepted at the printed face value
1. Representative Paper Money:
This paper money represents cent percent gold, silver and standard coins kept in reserve against their issue.
2. Convertible Paper Money:
Under this issue of notes the government promises to pay on demand the face value of notes in terms of real value i.e. gold silver and standard coins. Generally proportionate reserve is maintained on issue of convertible paper money in the form of gold silver and government documents. In India notes worth Rs. 2, 5, 10, 20, 50, 100 and Rs. 500 are convertible paper money. It is issued by Reserve Bank of India.
3. Inconvertible Paper Money:
The government does not promise to repay back the face value in metallic terms of real/value. In our country one rupee note is non – convertible paper money. It is issued by Secretary, Ministry of Finance.
4. Fiat Money:
It is also known as emergency money issued by the government to meet the emergency requirement of funds. Behind this issue metallic reserve is not kept.
Question 2.
Explain various methods of extending loan by banks?
Answer:
The bank adopts the following methods for advancing loans:
1. Granting Loans:
The main function of the bank is to lend money at rates higher titan the rate of deposit. The excess interest earned by the bank is its profit. These loans are granted on the security and surety.
2. By Allowing an Overdraft:
Customers having current account in the bank are provided the facility to draw from the bank more than their deposit as per arrangement with the bank only reputed and trustworthy customers are granted this facility. The bank charges interest on overdraft.
3. Cash Credit:
Under this method the borrower opens on account with the bank. The bank sanctions the loan and credits the amount in borrower’s name. He withdraws money as and when required. After the period of loan in over the borrower returns the money with interest. This is the method of granting loans.
4. Discounting Bills:
The bank advances loans on the security of bills and hundies, the practice is known as discounting of the bill. The bank charge interest for the period between the discounting of the bill to the due date of the bill. This is the safest method of advancing loan because the bill bears the security of both the drawee and drawer.