Class 10 Social Science - Understanding Economic Development - Chapter Money and Credit NCERT Solutions | Why do we need to expand formal sources

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 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.

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

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

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.

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.

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?

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:

Match the following.

What is the rationale behind the enactment of Consumer Protection Act 1986?

Critically examine the progress of the consumer movement in India?

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

How would flexibility in labour laws help companies?

Explain the objective of implementing the NREGA 2005.

Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark you will have to look for and why?

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

Explain the need for consumer consciousness by giving two examples.

In what respects is the criterion used by the UNDP for measuring development different from the one used by the World Bank?