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NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit NCERT Solutions for Class 10 Economics. In Class 10 Economics, you will learn the process of development of the Indian Economy. You will firstly see Class 10th Economics Chapter 3 Ncert Solutions System the beginnings of development in terms of the emergence of agriculture, manufacturing and services as three distinct sectors of the economy. Then you will learn the concept of human development that includes the development of health and education . Sep 30, �� 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. Money and Credit NCERT Intext Questions and Answers. NCERT Solutions for Class 10th: Chapter 3 Money and Credit Economics Social Studies (Social Science � myboat359 boatplans) Page No: 52 Excercises 1. In situations with high risks, credit might create further problems for the borrower. Explain. Answer In situations with high risks, credit might create further problems for the borrower.
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So as you can see, preparing at home becomes easier with these PDF solutions from Vedantu. This is also known as a debt-trap. Taking credit involves an interest rate on the loan and if this is not paid back, then the borrower is forced to give up his collateral or asset used as the guarantee, to the lender.

If a farmer takes a loan for crop production and the crop fails, loan payment becomes impossible. To repay the loan the farmer may sell a part of his land making the situation worse than before. Thus, in situations with high risks, if the risks affect a borrower badly, then he ends up losing more than he would have without the loan.

How does money solve the problem of double coincidence of wants? Explain with an example of your own. In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. By serving as a medium of exchanges, money removes the need for double coincidence of wants and the difficulties associated with the barter system.

For example, it is no longer necessary for the farmer to look for a book publisher who will buy his cereals at the same time sell him books. All he has to do is find a buyer for his cereals. If he has exchanged his cereals for money, he can purchase any goods or service which he needs. This is because money acts as a medium of exchange. How do banks mediate between those who have surplus money and those who need money?

They use the major portion of the deposits to extend loans to those who need money. In this way banks mediate between those who have surplus money and those who need money. Look at a 10 rupee note. What is written on top? Can you explain this statement? In India, Reserve Bank of India issues currency notes on behalf of the central government. The statement means that the currency is authorized or guaranteed by the Central Government.

That is, Indian law legalizes the use of rupee as a medium of payment that can not be refused in setting transaction in India. What is the basic idea behind the SHGs for the poor? Explain in your own words. The basic behind the SHGs is to provide a financial resource for the poor through organizing the rural poor especially women, into small Self Help Groups. They also provide timely loans at a responsible interest rate without collateral. What are the reasons why the banks might not be willing to lend to certain borrowers?

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