Chhattisgarh State Board Class 10 Social Science Chapter 18 Understanding Development Exercise Multiple Choice, Fill in the Blanks, Questions and Answers here.
Chhattisgarh State Class 10 Social Science Chapter 18 Solution
Multiple choice type questions
1.) D
2.) C
3.) C
4.) C
Fill in the blanks.
1.) Currency
2.) Governor of Reserve Bank of India
3.) Reserve bank of India
4.) Interest rate
5.) Current account
3.) Credit is a loan which any individual borrows to pay for the things which he or she needs. People borrow either from institutions like bank or non-institutional methods like friends and families. It helps to meet current and future needs. It increases the immediate buying capacity and ensures the circulation of currency in an economy. It helps both the trader and the customer to achieve their immediate interests. People take loans from the financial institutions on which interest is charged and financial institutions provide interests on deposits to attract more deposits. This ensures circulation of currencies.
4.) Money is a method of transaction in modern days. It helps to evaluate the price of various goods and services. It is a legal tender which is issued by the central bank of any country and is acceptable across the country. All the goods and services and services in the country are earmarked for prices using the currency. It provides a method of trade and transactions to common people which is uniform all over their political boundaries. It also helps them to evaluate their national income and GDP.
5.) The accounts from which money can be withdrawn or deposited daily are known as current accounts. They are also known as demand deposits because the banks assures that money would be available whenever it is needed. It is usually made by commercial clients or businesspeople who make financial transactions frequently. From this money can be withdrawn whenever needed.
6.) Banks maintain three types of accounts- savings account, current accounts, and fixed deposit. Savings accounts are the one in which money or income is deposited for saving purposes. Current accounts are the accounts from which money can be deposited and withdrawn on daily basis or whenever needed. While fixed deposits are the ones in which an individual deposits its money for a fixed period and he earns interest on it. Highest rate of interest is offered on fixed deposits while the lowest rate of interest is offered on the current accounts.
7.) We have seen evolution of money from metal currency to the present paper currency guaranteed by the central bank. In next 30 years more modern form of currency and transactions system can evolve like credit cards, debit cards, e-currency, cryptocurrency, non-fungible tokens etc.
8.) Credit or loans help to meet the present and future needs of people. It ensures the availability of funds to meet the emerging needs of economy. To ensure the availability of bank loans to everyone financial inclusion should be increased. The terms and conditions of providing loans should be formed to address the demand of every sector of economy whether it is agricultural sector, industrial sector, or the services sector. Loans should be given more for the capital generating activities and consumption-based or personal loans should be discouraged.
9.) When an individual takes a loan, he must mortgage an asset and provide a certain rate of interest. When he fails to pay his loan back the debtor has the right to sell, he mortgaged property to recover his loan. Many of the time the debtor is not able to pay back his loans like agricultural loans in cases of crop failures, bankruptcy in case of closure of companies, or failure to pay personal loans etc. are the cases when an individual falls into the debt trap. Nowadays a consumerism is more focused upon because of which people take loans to meet their daily requirements also, this increases their chances of falling into debt trap.
10.) There are various conditions which are necessary to fulfil before getting any loan. Like a fixed interest rate must be paid on the loan. Some assets must be mortgaged like land, buildings, vehicles, livestock, bank deposit, crop etc. In case the debtor fails to pay back the loan the bank the right to sell the mortgaged property to recover the loans. The loan must be paid back within a fixed time period.
11.) If the Reserve Bank would not control the commercial banks there would be many effects like- credit would only be available to the richer sections of society and not to the agricultural and unorganized sectors, exorbitant interest rates would be charged by the banks, no transparency in case of loan defaults and non-payment of interest, etc. So, the control of the central bank, in India it is reserve bank of Inda is necessary for overall development of the nation and increasing the financial inclusion in the country.
12.) Credit is the money which is required to pay for things when we do not have to pay for any purchase. It is also known as loans. Many of the times it is required to meet the immediate personal or professional needs. Like credit is required by the traders to continue trade and buy raw materials for any business. It ensures the availability of funds in a time of need and continuity in economic activities. Sometimes credit is also needed to meet the personal needs like personal loans, home loan, car loan etc. Banks provide interest on the deposits and circulate the deposited money in the form of loans and earns interest on it. In this way the circulation of money helps in the overall economic continuity in the country.
13.) Deposits in the bank are the liabilities on the bank which it must pay back after a certain period of time. Banks circulate this money in the form of loans to public and various businesses and earns interest from it. In a way it helps in the circulation of money in an economy and ensures economic growth. The money deposited in banks can be used in the form of debit card payments, credit card payments, online transactions, cheques, demand drafts etc. Bank ensures that the certain amount which is transacted by the account holder would be transferred to the target account without the involvement of any physical currency. Thus, the money deposited in the account is also a form of money which can be used through various methods.
Additional questions and Answer
Mcq
1.) Which one of the following is not a method of reducing girl child mortality rate?
a.) Improving education facilities
b.) Improving health facilities
c.) Improving entrepreneurial activities
d.) Strengthening old societal laws
2.) Society is not considered if it has
a.) High per capita income
b.) High literacy rate
c.) High life expectancy
d.) High infant mortality rate
3.) Human development report is published by
a.) UNICEF
b.) UNESCO
c.) UNDP
d.) UN
4.) Which one of the following is not an indicator considered in formulating human development reports.
a.) Average life expectancy
b.) Health
c.) Education
d.) All of the above are indicators.
5.) Malnutrition in the children is measure through
a.) Height
b.) Weight
c.) Eyesight
d.) Both a and b
6.) Which of the following is necessary for creating a healthy society
a.) Nutritious food
b.) Safe drinking water
c.) Proper sanitation
d.) All of the above
7.) Income of the people are measured through
a.) Per capita GDP
b.) Consumption expenditure
c.) Both of the above
d.) None of the above
8.) Which of the following natural resources are not found in Odisha.
a.) Coal
b.) Thorium
c.) Bauxite
d.) Iron
9.) According to UNDP what is literacy rate
a.) Percentage of population aged above 20 is literate.
b.) Percentage of population aged above 15 is literate.
c.) Percentage of population aged above 18 is literate.
d.) Percentage of population aged above 25 is literate.
10.) Income among countries can be best compared by measuring
a.) Purchasing power parity
b.) Per capita income
c.) GDP
d.) Per capita GDP
Very short
1.) What is money?
It is a medium of exchange.
2.) In history what defined the value of coins?
The prestige and reputation of the kings issuing them.
3.) What is hundi?
It is a special letter which ensured the amount to be paid to the bearer, from whom trader bought the goods.
4.) Which problem emerged with the expansion of trade?
Each region had a different coin which made trade difficult, other malpractices also emerged like tampering and forging of coins etc.
5.) The initial banking system was started by whom?
Jewellers or sarafs
6.) What is a national currency?
National currency is a legal tender which nobody can refuse to accept as a medium of exchange.
7.) Which type of accounts are maintained by the banks?
Savings account, current account, and fixed deposits.
8.) Who maintains a current account?
Commercial clients and businesspeople.
9.) Name the funds which is maintained in current account?
Demand deposit
10.) Name the central bank of India.
Reserve Bank of India.
Short
1.) What was the issue with using coins as a method of transactions?
Coins were widely used as a method of transaction in the medieval age. But it must be tested for authenticity and various malpractices such as scratching, chipping etc. were also done to tamper the quality of coins.
2.) Why did coin exchange become a trade in itself?
During the medieval age every region had a different coin and different issuing authority. So, to trade in these regions one must first exchange his native currency into the currency of the other place. This made the exchange of currency a trade.
3.) What method was devised by the traders to overcome the coins exchange problem?
To overcome the problem of coin exchange and carrying loads of coins from one place to another was hundi. Hundi was a special letter which ensured the bearer that he would be paid the signed amount for the city where they purchased their goods.
4.) How did the initial banking system start?
The receipts issued by jewelers were accepted as a secure guarantee. These receipts were used for trading purposes. Thus, it led to the development of trust in which jewelers and traders began accepting promissory notes or receipts issued by jewelers as legitimate money for carrying out trade deals. This led to the initial development of the banking system.
5.) The validity of money depends on which factors?
The validity of money depends upon the issuing authority, acceptance by the public and their faith in the government. If any of the factors are missing the value for money decreases rapidly.
6.) What are current accounts and who is supposed to use the current accounts?
Current accounts are the accounts which allow daily transactions. Money can be deposited and withdrawn daily from these accounts. It is usually maintained by commercial clients and businesspeople who do transactions daily. It offers a lower rate of interest compared to the savings and fixed deposits account.
7.) How does money help in evaluating the national income?
The prices of goods and services in any country are measured in terms of currency. It is the financial transaction unit. Thus, it helps to measure the total production of goods and services in any country in monetary terms.
8.) What are the functions of RBI?
Reserve Bank of India is the central bank of India. It is responsible for printing and issuing all the currency notes and coins of the country. It regulates the functioning of all the commercial banks in the country and regulates the policies that govern lending transactions, interest rates and all other economic regulations.
9.) What are the two important functions performed by the banks?
Firstly, banks open accounts for the people in which they deposit their money and use it when they require. Secondly, it also gives loans to people and charge interest on it, which ensures the availability of cash with the people.
10.) What is credit. Explain its importance.
Credit is the loan advances which are taken from financial institutions. It is important as it helps to meet many of our present and future demands. It ensures the continuation of businesses without any cash crunch.
Long
1.) Explain how money evolved over the years.
During the ancient time barter system was used as a medium of exchange in which goods were exchanged with other commodities. But it posed a problem of concurrence of demands and inherent value of goods. During the medieval age, metallic coins of intrinsic value were used as a medium of exchange. But it also had a problem of many coins issuing authorities in different regions which made trade difficult and tampering and scratching of coins to degrade its quality. Later the expansion of trading activities and strong trust between the jewelers and trading sections of society led to the development of paper money. It later became the present-day banking system. Presently the currency is issued by the central bank of the country, and it is widely accepted.
2.) Mention the role of reserve bank of India as the financial regulator.
Reserve Bank of India is the central bank of India which regulates all the banking operations in India. Various functions of reserve bank of India are-
- It is the core banking system in India, and it helps in building trust in the banking system of India.
- It ensures all the financial transactions i.e., cheques, cash, debit card, credit card etc.
- It formulates the banking rules of the country. It is necessary for every commercial bank to deposit 4% of its entire cash with the central bank to ensure that liquid cash is available whenever needed.
- In case of failure of banks, the RBI intervenes and reassures the account holders.
- It implements the rules governing the credit transactions in all the commercial banks in India.
3.) What are the three types of accounts maintained by a bank?
Bank maintains three types of accounts-
- Savings account- The account in which income and savings are deposited is known as a savings account. Interest is provided for the money kept in this account.
- Current account- It is an account which is maintained by the commercial clients and businesspeople. It ensures daily and frequent transactions, which is required to conduct businesses.
- Fixed deposits- It offers the highest rate of interest. In this the amount is deposited for a predetermined period of time at a fixed interest rate. Frequent withdrawals are not allowed in these types of account.
4.) What are the benefits and challenges of using a metal coin?
Various benefits of using a metal coin are-
- They have intrinsic value.
- They make financial transactions easier.
- They help in expanding the trade activities.
Various challenges associated with using metal coin are-
- It is difficult to check its authenticity.
- Various malpractices evolved like chipping, scratching etc.
- Adulterated metals started being used.
- Different coin issuing authorities made the exchange of coins a trade in itself.
5.) What is the nature of money used in the modern age?
In the 21st century both cash and bank deposits are used as a method of financial transactions. Today money is used in various forms like cash, cheque, demand deposit, credit card, debit card, online transactions etc. The banks issues cheque books and debit cards which can be used to withdraw money anytime. Whenever a cheque is issued, the bank verifies its details and honors it by transferring money to the holder. Similarly, a debit card and credit card are used for transferring money by swapping it on the POS machines, which verifies the account details and transfers the entered amount. Online transactions are also widely used, and some famous online banking apps are BHIM UPI, google pay etc.
Chapter 15 |
People’s Participation in Democracy |
Chapter 16 | |
Chapter 17 |