NCERT Economics Class 10 Chapter 3 Money and Credit CBSE Board Sample Problems Very Short Answer (For CBSE, ICSE, IAS, NET, NRA 2022)

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Question

Include details regarding rate of interest, mode of repayment, documents and collateral.

Solution

Terms of credit

Question

What stands for SHG?

Solution

Self Help Group

Question

Who issues currency in India?

Solution

Reserve Bank of India on behalf of Central Government

Question

Who supervises the functioning of formal sources of loans?

Solution

Reserve Bank of India

Question

Why is the supervision of the functioning of formal sources of loans necessary?

Solution

  • It is necessary to supervise the functioning of formal sources of loans because the banks have to maintain a minimum cash balance out of the deposits they receive.
  • They should also provide loans to small cultivators, small scale industries etc.

Question

Why can one not refuse a payment made in rupees in India?

Solution

One cannot refuse a payment made in rupees in India because it is authorized by the government of India. It is accepted as a medium of exchange all over the country.

Question

How do the deposits with the banks become their source of income?

Solution

  • Banks use a major portion of deposits to extend loans.
  • They charge a higher rate of interest on loans than what they offer on deposits.
  • The difference between what is charged from borrowers and what is paid to the depositors is the main source of income for the banks.

Question

What is a cheque?

Solution

A cheque is a paper instructing the bank to pay a specific amount from a person՚s account to the person in whose name the cheque has been issued.