Exercise 1
Embibe Experts Social Science Solutions for Exercise 1
Simple step-by-step solutions to Exercise 1 questions of Money and Credit from Social Science Textbook of Competency Based Questions for Class X. Also get 3D topic explainers, cheat sheets, and unlimited doubts solving on EMBIBE.
Questions from Exercise 1 with Hints & Solutions
'Business is all about solving people's problems - at a profit.'
Explain how banks function like a business with respect to the above statement.
Why are demand deposits considered as money?
'A bank is a place that will lend you money if you can prove that you do not need it.'
Justify the above statement in relation to the banks' requirements to ensure the security of the funds they lend.
How are farmers with small holdings affected by the high costs of borrowing loans?
Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?
Give reasons why we need to expand formal sources of credit in India.
Why is the share of formal sector credit higher for rich householders compared to poor householders?
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
| Occupations | Reasons for needing a loan |
| Construction worker | |
| A Graduate student who is computer literate | |
| A person employed in government service | |
| Migrant labourer in Delhi | |
| Household maid | |
| Small trader | |
| Autorickshaw driver | |
| A worker whose factory has closed down |
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
