Money and Credit Class 10 Notes Economics Chapter 3 - PDF Download
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?
You will comprehend the difference between official and informal credit if you attentively study the notes for Economics Class 10 Chapter 3. Just half of the total credit required by rural people is provided by the formal sector. The remainder of the credit is provided by the informal sector. The most important aspect is that formal credits be distributed in an equitable manner to disadvantaged individuals. Banks' primary responsibility must be to lessen their reliance on the informal sector.
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?
Loans are made by informal money lenders to individuals. They might be a friend, family, moneylender, dealer, or employer. You are not required to provide collateral to informal moneylenders. There is no organisation to monitor their actions, and they demand excessive interest rates on loans. Students may learn more about it by downloading 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.