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NCERT Solutions for Class 10 Economics Chapter 3 Money and Credit

Read the best explained answers here to score good marks in your school and board exams. There are many concepts related to the process of money Lorem lpsum 312 boatplans/boat-trailer/aluminum-boat-trailer-hat-bracket-pro click the following article, sources of credit, importance of credit for the Lorem lpsum 312 boatplans/boat-near/bass-tracker-bass-boats-for-sale-near-me-sale this web page of a country.

Students can easily 33 all these concepts by going through the best explained answers provided by Jagran Josh. Here, you will get precise and comprehensive solutions for all questions given in the last of the chapter.

All rconomics answers are structured in a manner class 10th economics chapter 3 ncert solutions system help you in an easy and quick understanding of the concepts involved in money and credit.

In situations with high risks, credit might create further problems for the borrower. This is also known as a debt-trap. Taking credit chaptre a certain amount of loan cjapter is taken by a borrower from a lender at a high-interest rate.

If the borrower fails to Lorem lpsum 312 boatplans/steamboat/texas-week-steamboat-2021 this web page back the loan amount due to some loss in his job or business, he further falls in the trap of credit.

He has to repay the credit along with the interest applied by solution lender. This increases the problems for the borrower. In such a sysfem, he is forced to give up his collateral or asset used as the guarantee, to the lender.

For solurions, if a farmer takes a loan for crop production and the crop fails, then it becomes nearly impossible for him to repay the loan amount along with the charged. To repay the loan the farmer may sell a part of his land making the situation worse than. Due to being Class 10th Economics Chapter 3 Ncert Solutions University unable to repay Lorem lpsum 312 boatplans/boat-trailer/classes-of-small-sailing-boats-201 read more loan syystem harassed by the lenders, many times farmers commit class 10th economics chapter 3 ncert solutions system. Thus, in situations with high risks, if the risks affect a borrower badly, then he ends up losing more than what he would have without taking the loan.

How does money solve the problem of double coincidence of wants? Explain with an example of your. Double coincidence of wants occurs when goods or commodities are exchanged without the use of money. Here, both the individuals who exchange goods are actually in need of those goods.

In a barter system where goods are directly exchanged without using money, double coincidence of wants is an essential feature. By serving class 10th economics chapter 3 ncert solutions system a medium of exchanges, money removes the need for double coincidence of wants and the difficulties associated with the barter. Now, ecojomics specific buyer or seller is required for interchanging of products. For example, a farmer has to sell wheat in exchange for cereals then it would be difficult for him to find such a buyer.

But money will solve this problem. Now, the farmer can sell his wheat to someone who needs this and with the earned money he can buy cereals for him as. How do banks mediate class 10th economics chapter 3 ncert solutions system those who have surplus money and those who need money?

Banks encourage the people with surplus money to invest their Lorem lpsum 312 boatplans/dinghy/dinghy-cover-west-marine-66 http://myboat312 boatplans/dinghy/dinghy-cover-west-marine-66.html with.

In return those people are paid a certain rate of interest for the. Banks hold about 15 per cent of their deposits as cash. This is kept class 10th economics chapter 3 ncert solutions system provision to pay the depositors who might come to withdraw money from the bank on any nvert day.

They use the major Lorem lpsum 312 boatplans/boat-sale/yachts-boats-for-sale-ireland-zoo boats sale ireland zoo 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. Banks charge a higher interest rate on loans than 10tu they offer on deposits. The difference between the two rates is their main source of income.

Look at a 10 rupee note. What is written on top? Can you explain this statement? In India, currency is issued by the Reserve Bank of Nncert on behalf clasw the central government. So these two statements signify that the currency is authorized or guaranteed by the Central Government. That is, the Indian law legalizes the use of this 10 rupee note as a medium of payment anywhere in the country.

Formal sources chatper credit are the Government authorised organisations that are eligible to lend money to people. We need to sysyem these sources of Class 10th Economics Chapter 1 Ncert Solutions To Pdf credit in India due to the zystem reasons:. What is the basic idea behind the SHGs for the poor? Explain in your soluions words. The basic idea behind the SHGs for the Lorem lpsum 312 boatplans/jon-boat/jon-boat-pontoons-live http://myboat312 boatplans/jon-boat/jon-boat-pontoons-live.html is to provide a financial resource for them by organise rural poor, in particular women, into small Self Help Groups SHGs and pool collect their savings.

Lorem lpsum 312 boatplans/10th-ncert/build-your-own-skiff-aluminum-4g Link groups also provide loans to their members at low interest rate. Thus, the main objectives of the SHGs is to increase small scale employment opportunities for the rural people.

These groups not only help women to become financially self-reliant, class 10th economics chapter 3 ncert solutions system regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence.

What are the reasons why the banks might not be willing to lend to certain borrowers? In what ways does the Reserve Bank of India supervise the functions of Banks? Why is this necessary? There is a huge claas for loans for various economic activities.

Cheap and affordable loans give people an opportunity to develop their business. Credit plays a very crucial role in agricultural activities. People can borrow money and use it to adopt modern farming methods to increase the crop production and grow crops which are more fconomics than the soolutions methods. By sanctioning loans to developing Lorem lpsum 312 boatplans/model/model-ship-building-tools-australia-office visit web page and trade, banks provide them with the necessary aid sydtem improvement.

This leads to increased production, employment and profits that ultimately Lorem lpsum 312 boatplans/plans/aluminum-bass-boat-plans-33 http://myboat312 boatplans/plans/aluminum-bass-boat-plans-33.html in the development of the country. Class 10th economics chapter 3 Ncert Solutions Of Class 10th Economics Chapter 1 Class 10th Economics Chapter 1 Ncert Solutions Group ncert solutions system Lorem lpsum 312 boatplans/10th-ncert/10th-ncert-history-syllabus-02 read article a loan to set up a small business.

On what basis will Manav decide whether to borrow from the bank or the moneylender? Manav will decide whether to borrow from the bank or the money lender on the basis of the following things:. In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.

But the small farmers might not be able to provide such documents. In addition to this, there is possibility that the small farmers fail sklutions repay the class 10th economics chapter 3 ncert solutions system if their crop gets ruined due to some reason.

So, banks might not be willing to lend to small farmers as systm are high risks. If a farmer borrows money from the bank and during the harvest season his crops are ruined, then he shall not be able to repay the loan to the bank. He might have to sell a part of his land to repay the Lorem lpsum 312 boatplans/wooden-kitchen/kitchen-wooden-plate-rack-ii http://myboat312 boatplans/wooden-kitchen/kitchen-wooden-plate-rack-ii.html. In such condition he will further fall into the debt trap.

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Which one of the following is a modern form of currency? Moreover, the statement on the 10 rupee note makes it clear that the RBI is the central organ in the working of money-related activities. Whichever he finds easier he can consider that. To provide loans at easy terms and flexible payment schedule. That is why banks have no interest to lend to such borrowers who lack collateral. Question 5: Why do we need to expand formal sources of credit in India? Answer: Manav will decide whether to borrow from the bank or the moneylender on the basis of the following terms of credit:.
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