Money and Credit CBSE Class 10 Economics solutions Money and Credit NCERT Class 10 Economics solutions. By practicing Class 10 Economics Chapter 3 MCQ with Answers, you can score well in the exam. Banks charge a higher interest rate on loans than what they offer on deposits. Studyrankers is a free educational platform for cbse k-12 students. Q. Solution 10. What are the reasons why the banks might not be willing to lend to certain borrowers ? Money and Credit In situations with high risks, credit might create further problems for the borrower.Explain. Higher cost of borrowing means a larger part of the earnings of the borrower is used to repay the loan. Manav needs a loan to set up a small business. Lending money is the main source of income for banks. 12. (a) Why might banks be unwilling to lend to small farmers? But on other hand in an economy where money is in use, money by providing the crucial intermediate step eliminates the need for double coincidence of wants. Manav needs a loan to set up a small business. 8. Answer In situations with high risks, credit might create further problems for the borrower. The formal sector still meets only about half of the total credit needs of the rural people. example. The Reserve Bank of India supervises the functioning of banks in following ways :-. Thus the banks might not be willing to lend have no collateral and those who have no repaying capacity. How does money solve the problem of double coincidence of wants? And repayment of the loan is crucially dependent on the income from farming, Whether loans would be useful or not, therefore, depends on the risko in the situations. Students should also check NCERT Solutions for Class 10 for other subjects. (a) Why might banks be unwilling to lend to small farmers ? Explain? The basic idea behind the SHGs is meant to create self-employment opportunities for the poor. Explain. Q. This will help them to identify their weak areas and will help them to score better in examination. Q. In India, the Reserve Bank of India issues Currency notes on behalf of the Central Government. CBSE Previous Year Question Paper for Class 10, CBSE Previous Year Question Paper for Class 12. Students who are in class 10th or preparing for any exam which is based on Class 10 Economics can refer to NCERT Economics Book for their preparation. Ans (i) poor (ii) Higher (iii) Reserve Bank of India (iv) bank deposit (v) Part of land. This would lead to higher incomes because many people could then borrow cheaply for a variety of different needs. There is a huge demand for loans for various economic activities. Get Money and Credit, Economics Chapter Notes, Questions & Answers, Video Lessons, Practice Test and more for CBSE Class 10 at TopperLearning. In this way, banks medinte between those who have surplus funds and those who are in need of these funds. Reserve Bank of India is written on top of a 10 Rupee note. Money and Credit. Why is this necessary? Thus by accepting deposits and by advancing loans banks mediate between those who have surplus money and those who need money. (i) Majority of the credit needs of the __________households are met from informal sources. NCERT Solutions for Class 10th: Ch 3 Money and Credit Economics Social Studies (S.St) Page No: 52 Excercises 1. Money and Credit Class 10 Economics Question Answer. Ans. Q. Solution: When the cultivation of any crop is dependent on rain , a natural resource, then the cultivation is risky. (c) Explain with an example how the terms of credit can be unfavourable for the small farmer. Ans. 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For this, banks and co-operative societies need to lend more. If Manav wants credit at cheap rates, he will consider borrowing the amount from the bank. CBSE Class 10th Economics 3 – Money and Credit MCQs. Discuss. The main demand for loans is for crop production. How do banks mediate between those who have surplus money and those who need money? Quick revision online notes covering each and every topic of the chapter. Q. In India, about 80 per cent of farmers are small farmers, who need credit for cultivation ? (ii) __________costs of borrowing increase the debt-burden. Two different credit situations • Credit is an agreement in which is created when a person gives money and goods to the needy person with the promise of to repay that with some rate of interest. Easy to print and read. Dec 24, 2020 - NCERT Solution, Money and Credit, Class 10 SST | EduRev Notes is made by best teachers of Class 10. All he has to do is find a buyer for his shoes. 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