RBSE Solutions For Class 10 Social Science Chapter 17: Money and Financial Institutions | Textbook Important Questions & Answers

Money is one of the biggest inventions made by man. Whatever is paid for goods and services is called money. Generally, money is used as a means of exchange. General acceptance as a means of exchange or payment is the special quality of money. Money is accepted for goods and services. Class 10 RBSE Social Science solutions are given here for the students to solve regularly so that they can score high marks in the exams. Practicing these RBSE Class 10 solutions of Social Science Chapter 17 enables the students to solve the questions given in the textbooks more easily. These solutions are one of the best reference materials to understand each and every concept so that students can face all kinds of questions, irrespective of their toughness.

RBSE Class 10 Social Science Chapter 17 Very Short Answer Type Questions

Q1. What is money?

Answer: Money is that which is accepted by all in exchange. Money works as the currency of India is Rupaiya, a medium of exchange, the measure of value, store of value, and base of deferred payments.

Q2. Explain the exchange.

Answer: Exchange means taking and giving of goods and services for money or any other goods services.

Q3. What is meant by a cheque?

Answer: Cheque is a kind of order which order banks to make payment to the person, the amount mentioned in it.

Q4. What is the name of the Indian currency?

Answer: The name of the Indian currency is Indian National Rupee.

Q5. What do you mean by saving?

Answer: The portion of income that has not been consumed is called saving.

RBSE Class 10 Social Science Chapter 17 Very Short Answer Type Questions

Q6. What is the Barter System?

Answer: Barter is a system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. Barter system used to be practiced earlier on the basis of all trade and commerce on marketing as to exchange of the things which you have with someone to get what he has. So, basically it was the exchange of things according to the needs and utility of commodities.

Q7. What were the problems in the Barter system?

Answer: There were problems in Barter System regarding requirement of both parties. It means a person who wants to sell a thing; the buyer must also need it. In the Barter System both purchaser and seller must have needs and it was difficult. There was a lack of standard measure in the Barter System. There was a great problem in transfer of value or deposit of money. It was risky to transfer money or value in the form of goods, then there was also the problem of indivisible goods. If a person wants to buy a horse for a sheep, he can neither exchange the whole horse nor divide it for a sheep. Due to these problems, the Barter System was stopped and replaced by money exchange.

Q8. Explain the functions of money as a measure of value.

Answer: Money mainly works as a medium of exchange, measure of value, a standard for delayed payments and store of value. It also plays an important role in completing many actions. Money works as a measure of value. It shows exchange value as money in all goods and services. An account statement is prepared showing similar unit in money of exchange, value of goods and services on different measures. The problem in measure as money is that its value keeps on changing.

Q9. What are the limits of metallic money?

Answer: Money in the form of goods was replaced by metal money. In the beginning, metal pieces were used as money. Then they were stamped and the value was marked on them. The use of metal coins started in China, India and Egypt but the transfer of metal money was not convenient. It cost more and the increasing demand was impossible to fulfill with metal money.

Q10. Explain money lender as a source of credit.

Answer: Money lenders also have an important role in non- traditional sources of money lending (credit). Money lenders lend their own capital. They do not accept deposit from the public. They generally give small personal loans. They charge high rate of interest from their borrowers. Those who can’t approach the banking system, generally take loans from these money lenders. Generally money lenders mortgage property and give loans to customers, but they also lend money without mortgaging property according to their credit. They are also called exploiters for charging high rates of interest from debtors. Nowadays, the importance of money lenders and local bankers is reduced due to expansion of financial services and financial institutions. Besides money lenders and local bankers, landlords, friends and relatives are also important non-traditional sources of lending money.

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