Samacheer Kalvi 9th Social Science Economics Solutions Chapter 3 Pdf
Tamilnadu Board Samacheer Kalvi 9th Social Science Economics Solutions Chapter 3: Tamilnadu State Board Solution Class 9 Social Science Economics Chapter 3 – Money and Credit.
Samacheer Kalvi 9th Social Science Economics Solutions Chapter 3: Overview
Social Science (Economics)
Money and Credit
Samacheer Kalvi 9th Social Science Economics Solutions Chapter 3 Money and Credit
I.) Choose the correct answer
1.) Certain metals like Gold (gold / iron) were used as a medium of exchange in ancient times.
2.) The Head Quarters of the RBI is at Mumbai (Chennai / Mumbai).
3.) International trade is carried on in terms of US Dollars (US Dollars / Pounds).
4.) The currency of Japan is Yen (Yen/ Yuan).
II.) Fill in the blanks
1.) Barter System can be considered as the first form of trade.
2.) Money supply is divided into four.
3.) The first printing press of the RBI was started at Nasik, Maharashtra.
4.) The Reserve Bank of India act as a regulator of the circulation of money.
5.) The thesis about money by B.R. Ambedkar is The Problem of the Rupee.
III.) Match the following
1.) US Dollar – Universally accepted currency
2.) Currency in circulation – 85%
3.) ATM – Automatic Teller Machine
4.) Salt – Substitute of money
5.) Riyal – Saudi Arabia
IV) Give short answers
1.) Why was money invented?
Answer: There was barter system of economy before invention of money, we needed option for it. Another thing is for individual goods we don’t use barter system. Common medium was needed to change the system of exchanging goods and services and thus money is invented.
2.) What is ancient money?
Answer: In the ancient time it was difficult to measure the quantity and value of the goods exchanged, to solve this issue they fixed a common item with a standard value for the effective exchange of goods.
4.) What is spice route? Why was it called so?
Answer:Spices like pepper, pearls, gems, rubies and muslin clothes were exported from the eastern sea of Tamil Nadu. The main items of this caravan was pepper and spices hence the route was called the spice route.
5.) What is natural money?
Answer: Metals like silver and gold was important and it spread all over the world these metals were used as standard value in the exchange of goods, hence these metals are called natural money.
6.) Why were coins of low value printed in large quantities?
Answer: There was limited metals in the mines. Coins were alternatives for these metals. Coins were used to buy and sell goods having less value than metal. It was useful for the poor people.
7.) What is meant by foreign exchange?
Answer: Foreign exchange means the conversion of one country’s currency into another country’s currency. The government may set value of country’s currency. It is the system of trading in and converting the currency of one country into another.
V.) Answer in detail
1.) Explain how money is transacted in the digital world.
Answer: Money is very important part of everyone’s life. Money shaped economic front. In the electronic world there are many ways of transaction. The basic one is by filling challan or cheque to transfer or withdraw money from account. This basic system is become old now. People prefer to visit ATM (Automated Teller Machine) to withdraw money instead of visiting bank. Using debit card money can be easily withdrawn by the ATM. There are some machines which provide facility to deposit money. Credit card also work same way.
2.) Explain in detail about the role of RBI in the country.
Answer: The Reserve Bank of India started its operations on 1st April 1935. It was permanently moved to Mumbai from the year 1937. RBI was nationalised in 1949. 85% of the printed currency is let for circulation. According to the statistics available as on August 2018, currency worth of 19 lakh crore is in circulation.A major portion of the savings in banks are used for the development of industries, economic growth and various development schemes for the welfare of the poor. All the major and important banks were nationalised in India. The Reserve Bank of India (RBI) regulates the circulation of currency in India.
3.) Write in detail about the various functions of money.
Answer: Money was more practical than barter system hence many issues were solved.
i) Medium of exchange: Money used for goods and services in the country. Many countries accepted money and for goods are services they provide.
ii) Unit of Account: Money was medium of exchange, unit of measurement. Money was more than just a transaction.
iii) A store of value: Money is used as a store of purchasing power. It can be used in future payments.
Write the correct statement
(a) 1. The barter system flourished wherever civilizations thrived.
2.) This was the initial form of trade.
i) 1 is correct; 2 is wrong
ii) Both 1 and 2 are correct
iii) Both 1 and 2 are wrong
iv) 1 is wrong; 2 is correct
Answer:Both 1 and 2 are correct
(b) 1. Most of the international trade transactions are carried out in US dollars.
No other country except the US carries out trade in the world.
i) Both the statements are correct.
ii) Both the statements are wrong.
iii) 1 is correct; 2 is wrong
iv) 1 is wrong; 2 is correct
Answer:1 is correct; 2 is wrong