Money and Credit Class 10 Notes Economics Chapter 3 - PDF Download
All the current types of money and their connections with the banking system are discussed vividly in Chapter 3 Money and Credit Class 10 Notes by Vedantu. In another portion of the chapter Money and Credit, the term ‘credit’ is discussed elaborately along with the impact of credit to the borrowers at various situations. Other relevant topics in this regard are also made a part of Class 10 Ch 3 Money and Credit Notes PDF which has been compiled by experts and can be downloaded for free which will definitely help the Class 10 CBSE students in the exam.
Money and Credit Class 10 Notes CBSE Economics Chapter 3 [Free PDF Download]
FAQs on Money and Credit Class 10 Notes CBSE Economics Chapter 3 [Free PDF Download]
1. What is Formal and Informal Credit in Class 10 Economics Chapter 3?
If you study the notes of Economics Class 10 Chapter 3 minutely you will get the idea of formal and informal credit. The formal sector contributes merely half of the aggregate credit required for the rural people. The rest of the credit comes from the informal sector. The most significant thing is that there is an equal distribution of the formal credits for the benefit of poor people. The prima facie prerogative of the banks must be to reduce the dependence on informal sectors.
2. What are the Self-Help Groups for?
There is much dependence on informal sources of credit because of the following reasons:
There are not sufficient banks in rural India.
Even if the banks are present, due to lack of proper documents and collateral, obtaining a loan from the bank is very complicated.
Due to these specific problems, self-help groups (SHG) are created by the people of rural India. Small groups of poor people which encourage small savings among the members are termed as SHG. Generally, an SHG consists of 15-20 members.
3. What is credit?
Credit means loans. It refers to an agreement in which the money, goods or services are supplied to the borrower by the lender in return for future repayment. Cheap and affordable credit is very important for the growth of the country and economic development. Credit can fuel various kinds of economic activities, such as investing in a business or for buying luxury things like cars etc. It helps people living in rural areas develop cultivation by providing them funds to buy seeds, pesticides etc.
4. Why is money needed?
Money plays an important role in our everyday life as it is used as a medium of exchange in transactions. It is needed for us to buy food, clothes, shelter and other basic necessities of life. It provides us with social security. It is also necessary for us to access services like transport, education, healthcare, entertainment and so on. Money is the basis of the working of an economy and facilitates business and trade.
5. What is money?
Money literally means anything which has common acceptability by the people as a means of exchange. It refers to the medium of exchange in the form of coins or banknotes. It allows a person to easily buy or sell products. It allows us to buy anything we need for our livelihood and is used for lending loans. For a more detailed explanation, you can visit Vedantu for Notes of Chapter 3 Class 10 Economics and download it free of cost.
6. Who are the informal money lenders?
Informal money lenders lend money to people as loans. They can be a friend, relative, moneylender, traders, employers, etc. You don't have to submit any collateral to informal moneylenders. There is no organisation that will keep a check on their activities, and they charge high interest on loans. To know more about it, students can download the vedantu app.
7. What are the advantages of SHGs?
SHGs or Self-Help Groups help people obtain timely loans for various purposes at a reasonable interest rate. They also help the woman become financially self-reliant and even assist people who have borrowed money to overcome the problem of lack of collateral. Self Help Groups are the building blocks of the organisation for the poor, living in rural areas. The group conducts regular meetings providing a platform to discuss and bring changes in various issues such as domestic violence, health, finances, etc.