CBSE Class 10 Economics Chapter 3 Notes - Money and Credit

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Money and Credit Class 10 Notes Economics Chapter 3 - PDF Download
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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.

CBSE Class 10 Economics Chapter 3 Notes - Money and Credit part-1
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FAQ (Frequently Asked Questions)

1. What is Formal and Informal Credit in Class 10 Economics Chapter 3?

Ans. 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?

Ans. There is much dependence on informal sources of credit because of the following reasons:

  1. There are not sufficient banks in rural India.

  2. 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.