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MONEY AND CREDIT
-SUJAL YADAV
INTRODUCTION
• Importance of Money:
1) To satisfy the human needs.
2) Medium of exchange.
WHY IS MONEY?
• Money can be easily exchanged against any commodity or
service.
• Transaction takes place quickly.
• Each commodity and service has fixed value in terms of
money.
BARTER SYSTEM
• Meaning : When goods and
services were exchanged without
use of money.
• Difficulties :
• (a) Double coincidence of wants.
• (b) Time consuming.
• (c ) No fixed monetary value of
things.
AFTER BARTER
SYSTEM
THINGS LIKE GRAIN, CATTLES AND PRECIOUS
COINS WERE USED AS MONEY.
MODERN FORMS OF MONEY
o Currency notes and coins
o Debit, credit cards.
o Cheques and e-banking.
RESERVE BANK OF INDIA (CENTRAL BANK OF INDIA)
• To issue the currency notes and coins on behalf of Central Govt of India.
• To check the activities of other banks.
• To give general instructions to other banks, like keeping cash balance, giving loan to all on equal basis.
.
• ..
BANK AS MEDIATOR BETWEEN
DEPOSITOR AND BORROWER
LOAN ACTIVITIES OF BANKS
• Terms and Conditions of bank loan:
• Loan Amount
• Duration of loan.
• Documents required.
• Interest Rate.
• Mode of re payment.
• Colateral.
• Guaranteer.
TWO SECTORS OF CREDIT IN INDIA
Formal Sector
Commercial banks and coperative societies
Informal Sector
Money lenders , landlords, traders, relatives and
friends and others.
WHY FORMAL SECTOR NEEDS TO EXPAND ITS LOAN
FACILITIES:
• Necessary for everyone to receive loans.
• Equal development of all.
• To overcome the exploitation of money lenders.
• Economic Development of Country.
SELF HELP GROUPS FOR POOR
• Benefits:
• Low rate of interests.
• No colateral.
• Decision making authority.
• Loan facility for variety of purposes.
• Women became financially self reliant.
• Platform to discuss social issues.
.
• .
..
• ...

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Money and credit cbse class 10

  • 2. INTRODUCTION • Importance of Money: 1) To satisfy the human needs. 2) Medium of exchange.
  • 3. WHY IS MONEY? • Money can be easily exchanged against any commodity or service. • Transaction takes place quickly. • Each commodity and service has fixed value in terms of money.
  • 4. BARTER SYSTEM • Meaning : When goods and services were exchanged without use of money. • Difficulties : • (a) Double coincidence of wants. • (b) Time consuming. • (c ) No fixed monetary value of things.
  • 5. AFTER BARTER SYSTEM THINGS LIKE GRAIN, CATTLES AND PRECIOUS COINS WERE USED AS MONEY.
  • 6. MODERN FORMS OF MONEY o Currency notes and coins o Debit, credit cards. o Cheques and e-banking.
  • 7. RESERVE BANK OF INDIA (CENTRAL BANK OF INDIA) • To issue the currency notes and coins on behalf of Central Govt of India. • To check the activities of other banks. • To give general instructions to other banks, like keeping cash balance, giving loan to all on equal basis.
  • 9. BANK AS MEDIATOR BETWEEN DEPOSITOR AND BORROWER
  • 10. LOAN ACTIVITIES OF BANKS • Terms and Conditions of bank loan: • Loan Amount • Duration of loan. • Documents required. • Interest Rate. • Mode of re payment. • Colateral. • Guaranteer.
  • 11. TWO SECTORS OF CREDIT IN INDIA Formal Sector Commercial banks and coperative societies Informal Sector Money lenders , landlords, traders, relatives and friends and others.
  • 12. WHY FORMAL SECTOR NEEDS TO EXPAND ITS LOAN FACILITIES: • Necessary for everyone to receive loans. • Equal development of all. • To overcome the exploitation of money lenders. • Economic Development of Country.
  • 13. SELF HELP GROUPS FOR POOR • Benefits: • Low rate of interests. • No colateral. • Decision making authority. • Loan facility for variety of purposes. • Women became financially self reliant. • Platform to discuss social issues.