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NCERT Solutions Class 10 Social Science Economics Chapter 3 Money and Credit - NCERT Solutions Jan 17, �� NCERT Solutions for Class 10th: Ch 3 Money and Credit Economics Social Studies (myboat009 boatplans) Page No: 52 Excercises 1. In situations with high risks, credit might create further problems for the borrower. Explain. Answer In situations with high risks, credit might create further problems for the borrower. This is also known as a myboat009 boatplansted Reading Time: 6 mins. NCERT Solutions for Class 10 Economics. In Class 10 Economics, you will learn the process of development of the Indian Economy. You will firstly see the beginnings of development in terms of the emergence of agriculture, manufacturing and services as three distinct sectors of the economy. Then you will learn the concept of human development that includes the development of health and education Estimated Reading Time: 3 mins. NCERT Solutions for Class 10 Economics Chapter 4 Globalisation And The Indian Economy provides the answers in pdf format. These answers are created by subject experts and help you to Estimated Reading Time: 9 mins.
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St Page No: 52 Excercises 1. In situations with high risks, credit might create further problems for the borrower. Answer In situations with high risks, credit might create further problems for the borrower. This is also known as a debt-trap. Taking credit involves an interest rate on the loan and if this is not paid back, then the borrower is forced to give up his collateral or asset used as the guarantee, to the lender.

If a farmer takes a loan for crop production and the crop fails, loan payment becomes impossible. To repay the loan the farmer may sell a part of his land making the situation worse than before. Thus, in situations with high risks, if the risks affect a borrower badly, then he ends up losing more than he would have without the loan. How does money solve the problem of double coincidence of wants?

Explain with an example of your own. Answer In a barter system where goods are directly exchanged without the use of money, double coincidence of wants is an essential feature. By serving as a medium of exchanges, money removes the need for double coincidence of wants and the difficulties associated with the barter system.

For example, it is no longer necessary for the farmer to look for a book publisher who will buy his cereals at the same time sell him books. All he has to do is find a buyer for his cereals. If he has exchanged his cereals for money, he can purchase any goods or service which he needs. This is because money acts as a medium of exchange. How do banks mediate between those who have surplus money and those who need money?

They use the major portion of the deposits to extend loans to those who need money. In this way banks mediate between those who have surplus money and those who need money. Look at a 10 rupee note. What is written on top? Can you explain this statement? In India, Reserve Bank of India issues currency notes on behalf of the central government. The statement means that the currency is authorized or guaranteed by the Central Government.

That is, Indian law legalizes the use of rupee as a medium of payment that can not be refused in setting transaction in India.

Why do we need to expand formal sources of credit in India? What is the basic idea behind the SHGs for the poor? Explain in your own words. Answer The basic behind the SHGs is to provide a financial resource for the poor through organizing the rural poor especially women, into small Self Help Groups. They also provide timely loans at a responsible interest rate without collateral. With these solutions, you would know about the specific format in which the answers are to be written.

In other words, you would have a better chance to impress the evaluator by structuring your answers in the right format. Note that Economics Chapter 3 Class 10, forms the bulk of questions to be asked in your examinations. Hence, it becomes all the more important to know the right way to answer these questions.

Created by the Best Teachers. With their years of experience, they have answered the questions in the right format. Use of Lucidly Clear Language. The questions of the Ch 3 Eco Class 10 have been drafted in an easy-to-understand language. There are various terms in Money and Credit, which are difficult to understand without guidance.

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