Class 10 Social Science - Understanding Economic Development - Chapter Money and Credit NCERT Solutions | Manav needs a loan to set up a small bus

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?

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

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

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:

“The impact of globalisation has not been uniform.” Explain this statement.

Say True or False.

1. COPRA applies only to goods.
2. India is one of the many countries in the world which has exclusive courts for consumer redressal.
3. When a consumer feels that he has been exploited, he must file a case in the District Consumer Court.
4. It is worthwhile to move to consumer courts only if the damages incurred are of high value.
5. Hallmark is the certification maintained for standardisation of jewellry.
6. The consumer redressal process is very simple and quick.
7. A consumer has the right to get compensation depending on the degree of the damage.

“Tertiary sector is not playing any significant role in the development of Indian
economy.” Do you agree? Give reasons in support of your answer.

Choose the most appropriate option.
(i) The past two decades of globalisation has seen rapid movements in
(a) goods, services and people between countries.
(b) goods, services and investments between countries.
(c) goods, investments and people between countries.

(ii) The most common route for investments by MNCs in countries around the world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form partnerships with local companies.

(iii) Globalisation has led to an improvement in living conditions
(a) of all the people
(b) of people in developed countries
(c) of workers in the developing countries
(d) none of the above

Do you think the classification of economic activities into primary, secondary and tertiary is useful? Explain how.

The following tables gives the GDP in Rupees (Crores) by the three sectors:

i. Calculate the share of the three sectors in GDP for 1950 and 2000.

ii. Show the data as a bar diagram similar to Graph 2 in the chapter.

iii. What conclusions can we draw from the bar graph?

 Mention some of the rights of consumers and write a few sentences on each?

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

What legal measures were taken by the government to empower the consumers in India?