SELF ASSESSMENT PAPER-04
SOLUTIONS
Ans. 1. Option (D) is correct.
Explanation: World Trade Organization (WTO):
It is the only Global International Organisation
dealing with the Rules of Trade between
Nations.
Ans. 2. Option (B) is correct.
Ans. 3. Option (A) is correct.
Explanation: In organised sector terms of
employment are pre-decided and there is
security for the employees.
Ans. 4. Option (C) is correct.
Explanation: Collateral is the security provided
by a borrower (such as land, building, vehicle,
livestock, deposits with banks) against a loan,
and it can be sold in case of non-payment of
loan.
Ans. 5. Option (B) is correct.
Explanation: Barter system refers to the direct
exchange of goods and services. In this way, the
Barter System refers to the System by which one
commodity is exchanged for another without
the use of money.
However, exchanging goods in the Barter
System required Double Coincidence of Wants.
Barter System was used in ancient times for the
exchange goods. It was a system where one
commodity, product or some goods was
exchanged for another.
Ans. 6. Option (A) is correct.
Ans. 7. Option (A) is correct.
Explanation: Absence of Collateral is one of the
major reasons which prevents the poor from
getting Bank Loans.
Ans. 8. Option (A) is correct.
Ans. 9. Option (C) is correct.
Explanation: Loan is sanctioned in the name of
the group and is meant to create self-
employment opportunities for the members. For
instance, small loans are provided to the
members for releasing mortgaged land, for
meeting working capital needs (e.g. buying
seeds, fertilisers, raw materials like bamboo and
cloth), for housing materials, for acquiring assets
like sewing machine, handlooms, cattle, etc.
Ans. 10. Option (D) is correct.
Explanation: Most of the important decisions
regarding the savings and loan activities are
taken by the group members. The group decides
with regards to the loans to be granted — the
purpose, amount, interest to be charged,
repayment schedule etc. Also, it is the group
which is responsible for the repayment of the
loan.
Ans. 11. Indian Railways, BHEL.
Ans. 12. The Grameen Bank of Bangladesh was started
by Professor, Muhammad Yunus in 1970.
Ans. 13. A country which does not have high income and
the standard of living is also low is considered as
‘Underdeveloped country’.
Ans. 14. It is an area in which Business and Trade laws
are different from the rest of the country. These
are located within a Country’s National Borders
and their aims include increased trade, increased
investment, job creation and effective
administration.
(i) Companies who setup units in SEZs are
exempted from tax for 5 years.
(ii) They are setup to attract Foreign
Investment.
Ans. 15. The average income, i.e., per capita income is the
main criterion used by the World Bank in
classifying different countries.
Limitations:
(a) It covers only the economic aspect ignoring
factors like infant mortality rate, literacy
rate, net attendance ratio for class I-V, etc.,
which are important indicators for
development.
(b) This method also does not provide us the
distribution of income at different levels.
Ans. 16. G20 is one of the most powerful blocs in the
world due to the following reasons:
• It contributes to around 80% of the Gross
World Product (GWP).
• Two-third of the global population of the
world are the inhabitants of the G20 Member
nations. The nations of the G20 cover more
than 60% of the total land area of the world.
Ans. 17. (i) By separating the acts of sale and purchase,
money, as a medium of exchange, resolves
the problem of lack of double coincidence of
wants.
(ii) The absence of a common measure of value
is solved by using money as a measure or
unit of value or a unit of account. Money
serves as a unit of account and a yardstick
for determining the exchange value of all
goods.
 2 Oswaal CBSE Question Bank Chapterwise & Topicwise, SOCIAL SCIENCE, Class-X
(iii) Money as a store of value solves the
challenge of storing wealth that plagues
barter. It broadened people's purchasing
power.
(iv) The use of money allowed people to sell
their excess commodities in exchange for
cash and utilise the cash to purchase their
necessities. Currency was invented during
ancient wars because it was too difficult for
warriors to carry chickens and beans
around to exchange for what they needed.
(v) The indivisibility of goods was a significant
issue. A severe problem of indivisibility of
certain items arose under barter. Some
articles were tough to break down into
manageable chunks. As a result, one of the
trade parties was forced to give up his entire
indivisible thing in return for the other's
goods.
Ans. 18. Disguised unemployment: Disguised
unemployment is a situation where the number
of workers engaged in a job are much more than
required. If some of them are withdrawn from
the job, the total production will not fall. It
means that marginal productivity of such
workers is zero. For example, where the need is
for 4 labourers and 7 labourers are working, it
means 3 labourers are suffering from disguised
unemployment or under-employment. In such a
case, the production will not be affected even if
the three extra labourers do not work.
Examples:
(i) In rural India, agricultural field is suffering
from this type of unemployment. All family
members work on the agricultural field but
all the work can be done only by one or two
persons alone. Rest are just engaged. More
than half of the workers in the country are
working in primary sector mainly in
agricultural activities producing only a
quarter of GDP.
(ii) In urban areas, workers like painters,
plumbers, repair persons, cart drivers do
not find work every day or for the whole
day. 3+2=5
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