Class 10 Social Science - Understanding Economic Development - Chapter Money and Credit NCERT Solutions | How do banks mediate between those who h

Analyse the role of credit for development.

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

In situations with high risks, credit might create further problems for the borrower. Explain?

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.

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

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

Look at a 10 rupee note. What is written on top? Can you explain this statement?
“Reserve Bank of India” and “Guaranteed by the Government” are written on top.

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

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

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.

Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above

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)

What do you understand by globalisation? Explain in your own words.

Why are rules and regulations required in the marketplace? Illustrate with a few examples.

Which of the following neighbouring countries has better performance in terms of
human development than India?
(i) Bangladesh
(ii) Sri Lanka
(iii) Nepal
(iv) Pakistan

Choose the most appropriate answer.
(a) The sectors are classified into public and private sector on the basis of:
(i) employment conditions
(ii) the nature of economic activity
(iii) ownership of enterprises
(iv) number of workers employed in the enterprise

(b) Production of a commodity, mostly through the natural process, is an activity in ______________ sector.
(i) primary
(ii) secondary
(iii) tertiary
(iv) information technology

(c) GDP is the total value of _____________ produced during a particular year.
(i) all goods and services
(ii) all final goods and services
(iii) all intermediate goods and services
(iv) all intermediate and final goods and services

(d) In terms of GDP the share of tertiary sector in 2003 is _________
(i) between 20 per cent to 30 per cent
(ii) between 30 per cent to 40 per cent
(iii) between 50 per cent to 60 per cent
(iv) 70 per cent

What was the reason for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?

What factors gave birth to the consumer movement in India? Trace its evolution?

Assume there are four families in a country. The average per capita income of
these families is Rs 5000. If the income of three families is Rs 4000, Rs 7000
and Rs 3000 respectively, what is the income of the fourth family?
(i) Rs 7500
(ii) Rs 3000
(iii) Rs 2000
(iv) Rs 6000

Match the following:

Service sector in India employs two different kinds of people. Who are these?

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

What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?

Why are rules and regulations required in the marketplace? Illustrate with a few examples.

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.

Find the odd one out and say why.
(i) Tourist guide, dhobi, tailor, potter
(ii) Teacher, doctor, vegetable vendor, lawyer
(iii) Postman, cobbler, soldier, police constable
(iv) MTNL, Indian Railways, Air India, Jet Airways, All India Radio

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

Explain the need for consumer consciousness by giving two examples.

Compare the employment conditions prevailing in the organised and unorganised
sectors.

How does foreign trade lead to the integration of markets across countries? Explain with an example other than those given here.