NCERT Solutions

The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.

Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?

In situations with high risks, credit might create further problems for the borrower. Explain.

How does money solve the problem of double coincidence of wants? Explain with an example of your own.

How do 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?

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.

What are the reasons why the banks might not be willing to lend to certain borrowers?

In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?

Analyse the role of credit for development.

Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.

What do you think would happen if all the depositors went to ask for their money at the same time?

Fill the following details of Megha's housing loan.

List the various sources of credit in Sonpur.

Underline the various uses of credit in Sonpur in the above passages.

Compare the terms of credit for the small farmer, the medium farmer and the landless agricultural worker in Sonpur.

Why will Arun have a higher income from cultivation compared to Shyamal?

Can everyone in Sonpur get credit at a cheap rate? Who are the people who can?

Talk to some people to find out the credit arrangements that exist in your area. Record your conversation. Note the differences in the terms of credit across people.

What are the differences between formal and informal sources of credit?

Why should credit at reasonable rates be available for all?

Should there be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders? Why would its task be quite difficult?

Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?

How does the use of money make it easier to exchange things?

Can you think of some examples of goods / services being exchanged or wages being paid through barter?

M. Salim wants to withdraw Rs 20,000 in cash for making payments. How would he write a cheque to withdraw money?

Why are demand deposits considered as money?

Fill the following table.

Supposing Salim continues to get orders from traders. What would be his position after 6 years?

What are the reasons that make Swapna's situation so risky? Discuss factors - pesticides; role of moneylenders; climate.

Why do lenders ask for collateral while lending?

Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?

Fill in the blanks choosing the correct option from the brackets.

While taking a loan, borrowers look for easy terms of credit. This means _____ (low/high) interest rate, _____ (easy/ tough) conditions for repayment, _____ (less/more) collateral and documentation requirements.