Notes of sst class 10 :notes of sst class 10 chapter money and credit
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Notes of sst class 10
Money can act as a medium of exchange for goods and services.
→Barter system: -
In India, the Reserve Bank of India issue currency notes on behalf of the government.A deposit with a bank that can be withdrawn on demand is called a demand deposit.
A cheque
Credit is an agreement in which the lender supplies the borrower with money, goods or service in return for the promise of future payment.→Collateral security
It is a security against the loan. If the borrower fails to repay the loan, the lender has the right to sell the Asset or Collateral to obtain payment.Terms of credit comprise of interest rate, collateral security, documentation requirement and mode of repayment.
Banks and cooperative provide formal loans.
Moneylenders provide the informal sector.
Reserve Bank of India supervise The functioning of the formal source of loan but no organisation supervise the credit activities of the informal sector.
A self-help group is a group of people usually belonging to one neighbourhood having the same social and economic background.
These groups collect money and give it to a person who required it.
Q1) modern form of money includes _.
Q2) what is most important function of money_.
Q3) what is collateral loan?
Q4) what is demand deposit?
Q5) what is real source of income for banks?