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Class 10
Social Science - Understanding Economic Development
Money and Credit
In India, about 80 percent of farmers are small farmers, who need cult...

In India, about 80 percent of farmers ar | Class 10 Social Science - Understanding Economic Development Chapter Money and Credit, Money and Credit NCERT Solutions

Welcome to the NCERT Solutions for Class 10 Social Science - Understanding Economic Development - Chapter Money and Credit. This page offers a step-by-step solution to the specific question from Exercise 1, Question 11: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 11:

In India, about 80 percent of farmers are small farmers, who need 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 of how the terms of credit can be unfavorable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.

Answer:

(a) Banks ask for proper document before providing loans. But the small farmers might not be able to provide such documents. In addition to this there is possibility that the small farmers fail to repay the loan if their crop gets ruined due to dome reason. So banks might not be willing to lend to small factors as there are high risks.

(b) Apart from the banks, other sources from which the small farmers can borrow include informal sources of credit like local money lenders, agricultural traders, nig landlords, cooperatives SHGs etc.

(c) The terms of credit can be unfavorable for the small farmer can be explained with the help of the following example: It a farmer borrows money from the bank during the harvest season his crops are ruined. Then he small not be able to repay the loan to the bank. He might have to sell a part of his land to repay the amount. In such condition he will further fall into the debt trap.

(d) The small farmers can get cheap from the different sources like banks, agricultural cooperatives and SHGs.

Other Questions of Chapter Money and Credit

Fill in the blanks:

Majority of the credit needs of the __________households are met from informal sources.
__________costs of borrowing increase the debt-burden.
__________issues currency notes on behalf of the Central Government.
Banks charge a higher interest rate on loans than what they offer on __________.
_________is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.

What is the basic idea behind the SHGs for the poor? Explain in your own words.

How does money solve the problem of double coincidence of wants? Explain with example of your own.

Choose the most appropriate answer.
(i) In an SHG most of the decisions regarding savings and loan activities are taken by
(a) Bank.
(b) Members.
(c) Non-government organization.

(ii) Formal sources of credit do not include
(a) Banks.
(b) Cooperatives.
(c) Employers.

Why do we need to expand formal sources of credit in India?

Analyse the role of credit for development.

What are the reasons why the banks might not be willing to lend to certain borrowers?

How do banks mediate between those who have surplus money and those who need money?

In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?

Popular questions of class 10 Social Science - Understanding Economic Development

The following table shows the proportion of adults (aged 15-49 years) whose BMI
is below normal (BMI <18.5 kg/m2) in India. It is based on a survey of various
states for the year 2015-16. Look at the table and answer the following questions.

(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around one-fifth of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words.

Explain how public sector contributes to the economic development of a nation.

Why is the issue of sustainability important for development?

Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Distinguish between open unemployment and disguised unemployment.

Critically examine the progress of the consumer movement in India?

For each of the items given in Table 1.6, find out which country is at the top and
which is at the bottom.

“Tertiary sector is not playing any significant role in the development of Indian
economy.” Do you agree? Give reasons in support of your answer.

For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.

Why do we use averages? Are there any limitations to their use? Illustrate with
your own examples related to development.

Recently Viewed Questions of Class 10 Social Science - Understanding Economic Development

The following tables gives the GDP in Rupees (Crores) by the three sectors:

Year	Primary	Secondary	Tertiary
1950	80,000	19,000	39,000
2000	3,14,000	2,80,000	5,55,000

i. Calculate the share of the three sectors in GDP for 1950 and 2000.

ii. Show the data as a bar diagram similar to Graph 2 in the chapter.

iii. What conclusions can we draw from the bar graph?

A study in Ahmedabad found that out of 15,00,000 workers in the city, 11,00,000
worked in the unorganised sector. The total income of the city in this year (1997-1998) was Rs 60,000 million. Out of this Rs 32,000 million was generated in the organised sector. Present this data as a table. What kind of ways should be thought of for generating more employment in the city?

Kerala, with lower per capita income has a better human development ranking
than Haryana. Hence, per capita income is not a useful criterion at all and should
not be used to compare states. Do you agree? Discuss.

Using examples from your area compare and contrast that activities and functions
of private and public sectors.

For each of the items given in Table 1.6, find out which country is at the top and
which is at the bottom.

A research scholar looked at the working people in the city of Surat and found the following.

Place of work	Nature of employment	Percentage of working people
In offices and factories registered with the government	Organised	15
Own shops, office, clinics in marketplace with formal license	---	15
People working on the street, construction workers, domestic workers	---	20
Working in small workshops usually not registered with the government	---	---

Complete the table. What is the percentage of workers in the unorganised sector in this city?

Fill in the blanks using the correct option given in the bracket:

(i) Employment in the service sector _________ increased to the same extent as production. (has / has not)
(ii) Workers in the _________ sector do not produce goods. (tertiary agricultural) (iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)
(v) Cotton is a _________ product and cloth is a _________ product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are _________. (independent / interdependent)

Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.

Mention a few factors which cause the exploitation of consumers.

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Money and Credit.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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