UDGAM SCHOOL FOR CHILDREN

Subject: Social Science (087) Economics(2021-22) Worksheet No. 13

Ch.3 MONEY AND CREDIT Date: _______
Name : _______________________Std. / Sec: X ____________ Roll No. : _____

I. Answer the following questions in short:

1. What is a Barter System?

2. What is a Cheque?

3. What are modern forms of currency?

4. Why cannot one refuse a payment made in rupees in India?

5. Recognize the situation when both the parties in a barter economy have to
agree to sell and buy each other’s commodities. What is it called?

6. What do you mean by the term ‘collateral’?

7. How do banks act as mediators?

8. Compare formal sector loans with informal sector of loans regarding interest
only.

9. What are the Informal sources of loan?

10. How do the deposits with bank become sources of income-

(i) For Account holders (ii) For Banks

Page 1 of 3
Std. X / SS / Ch.3 Economics / Worksheet No. 13 / 2021-22
rachna.kajani@udgamschool.com/surangana.ghosh@udgamschool.com/preeta.menon@udgamschool.com/
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11. What are the formal sources of loans?

12. Prove with an argument that there is a great need to expand formal sources of
credit in rural India.

13. What are SHGs?

14. Give any two advantages of SHGs.

15. What are the main ‘terms of credit’?

16. Why are most of the poor households deprived from the formal sector of loans?

17. Why do lenders ask for collateral while lending?

18. Why should credit at reasonable rates be available for all?

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

20. What do you understand by credit?

Page 2 of 3
Std. X / SS / Ch.3 Economics / Worksheet No. 13 / 2021-22
rachna.kajani@udgamschool.com/surangana.ghosh@udgamschool.com/preeta.menon@udgamschool.com/
deepika.bawa@udgamschool.com
 II. Fill in the Blanks :

1. ______ implies the direct exchange of goods against goods without the use of money.
2. ____________may be defined as anything which is generally accepted by people in
exchange of goods and services or in repayment of debts.
3. In India, the law legalizes the use of ______as a medium of payment that cannot be
refused in settling any transaction.
4. Money as a medium of exchange has removed the problem of _______________of wants.
5. Modern forms of money include currencies which are _______________and _______.
6. ______________help in pooling the savings of their members, who are poor women
to meet their credit needs.
7. The share of formal sector credit is ___________for the richer households as
compared to the poor households in India.
8. Absence of ________ as a guarantee is a major cause that prevents poor people from
obtaining loans from formal sector sources, such as commercial banks.

III. Choose the correct option with regard to Assertion and Reasoning :
1. Assertion : The modern currency is used as a medium of exchange; however, it does
not have a use of its own.
Reason : Money is not an indicator to calculate economic growth of the countries.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

2. Assertion: The currency notes do not carry as much value in them as is denominated,
still have general acceptance.
Reason : Currency notes are backed by a legal promise from the Reserve Bank of India.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

3. Assertion: Every loan agreement specifies an interest rate which the borrower must
pay to the lender along with the repayment of the principal. In addition, lenders may
demand collateral against loans.
Reason: Interest rate, collateral and documentation requirement, and the mode of
repayment together comprise what is called the terms of credit.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

4. Assertion: Lenders demand a collateral against the loan they give.

Reason: Lenders want to grab the assets of the borrower apart from earning good interest.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.

Page 3 of 3
Std. X / SS / Ch.3 Economics / Worksheet No. 13 / 2021-22
rachna.kajani@udgamschool.com/surangana.ghosh@udgamschool.com/preeta.menon@udgamschool.com/
deepika.bawa@udgamschool.com