UDGAM SCHOOL FOR CHILDREN

Social Science (087) Economics (2021-22) Revision Worksheet

L-3 Money and Credit
Name:_______________________ Std. X Sec: ______ Roll No._____
Solve the following exercises in your notebook.

Section A (2 marks questions)

1. What is barter system? What is double co-incidence of wants?

2. What is a cheque? Which are the other forms of modern currency?
3. What is a collateral? Explain its importance.

Section B (3 marks questions)

4. What are demand deposits? How are they useful?

5. Differentiate between formal and informal sectors of credit.
6. In which situations are the banks not willing to give credit to the borrowers?

Section C (5 marks questions)

7. Analyse the role of credit for development.

8. Why should banks and cooperatives increase their lending activities in rural areas?
9. What is an SHG? How does it function? What is its significance?

Section D (Source passages)

10. Read the passage carefully and answer the questions given below:
Currency
Modern forms of money include currency — paper notes and coins. Unlike the things that were
used as money earlier, modern currency is not made of precious metal such as gold, silver and
copper. And unlike grain and cattle, they are neither of everyday use. The modern currency is
without any use of its own.
Then, why is it accepted as a medium of exchange?
It is accepted as a medium of exchange because the currency is authorised by the government of
the country. In India, the Reserve Bank of India issues currency notes on behalf of the central
government. As per Indian law, no other individual or organisation is allowed to issue currency.
Moreover, the law legalises the use of rupee as a medium of payment that cannot be refused in
settling transactions in India. No individual in India can legally refuse a payment made in rupees.
Hence, the rupee is widely accepted as a medium of exchange.

10.1 Which items were used as a medium of exchange in olden days? (1)
10.2 Nobody can refuse to accept Indian money in exchange of goods and services in India.
Explain by giving a reason. (1)
10.3 State two advantages of using paper notes, coins or other modern forms of currency.
(2)
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Std. X / SS / Economics L-3 / P.T-3 Revision Worksheet / 2021-22
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