Home » MP Board Class 10th Social Science Chapter 17 Money and Finance System Solutions

MP Board Class 10th Social Science Chapter 17 Money and Finance System Solutions

In this article, we will share MP Board Class 10th Social Science Book Solutions Chapter 17 Money and Finance System Pdf.

MP Board Class 10th Social Science Solutions Chapter 17 Money and Finance System

Objective Type Questions

Question 1. Multiple Choice Questions:
(Choose the correct answer from the following)

Question (i)
In latin Language money was known of – (MP board, 2012)
(a) Moneta
(b) Goddess Juno
(c) Pecunia
(d) Pecus
Answer:
(a) Moneta

Question (ii)
ATM means
(a) All Time Money
(b) Any Time Money
(c) Altogether Time of Money
(d) Automatic Teller Machohe
Answer:
(b) Any Time Money

Question (iii)
Which of the following institutions is the open body at various finance institution.
(a) SBI
(b) RBI
(c) NABARD
(d) CBI
Answer:
(c) NABARD

Question (iv)
Which of the following bank is called the Bank of Banks?
(a) Central Bank of India
(b) State Bank of India
(c) Reserve Bank of India
(d) Bank of Baroda
Answer:
(c) Reserve Bank of India

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Question 2. Fill in the blanks:

  1. There are ……………. banks were nationalised in 1969.
  2. The head of Rural Bank of Bangladesh is …………….
  3. ……………. are the backbone of Bangladesh’s Rural Bank.
  4. ATM has made the banking function very …………….

Answer:

  1. 14
  2. Mohammad Yunus
  3. Self Help Groups
  4. Convenient

Question 3. True and False type questions:

  1. Mahajans were the indigenous source of rural areas in ancient India.
  2. Thfe Central Bank of India is Reserve Bank of India.
  3. The second time nationalisation of banks in India was completed in the year of 1991.
  4. The mobile bank running in M.P. is called Laxmi Vahini.

Answer:

  1. True
  2. True
  3. False
  4. True

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Question 4. Match the Column:

  1. Money (a) debt
  2. Sahukar (b) Exchangeable median
  3. Bank (c) Finance
  4. Loan (d) Indigenous banking

Answer:

1. (b)
2. (d)
3. (c)
4. (a)

Answer in One – Two Words or One Sentence

Question 1.
Name the four important functions of money?
Answer:
Money is a matter of function for a medium, a measure, a standard and a store.

Question 2.
Mention the kinds of metallic money?
Answer:
Metallic money is classified as:

  1. Standard money
  2. Token money

MP Board 10th Social Science Solutions

Question 3.
Which system is adopted in the Indian economy?
Answer:
Barter System

Question 4.
Write the full form of ATM?
Answer:
Any Time Money

MP Board Class 10th Social Science Chapter 17  Very Short Answers Type Questions

Question 1.
What is ATM?
Answer:
A.T.M. (Any Time Money):
As it is clear by its name, A.T.M. is a system in which money can be withdrawn at any time. The A.T.M. is made of plastic and consists of a metal chip, on which all the details related to bank accounts are entered. A.T.M. has made the banking function very easy and convenient.

Question 2.
What do you mean by Laxmi Vahini?
Answer:
A mobile bank has been set up in the district of Khargone of Madhya Pradesh. This institution named ’Laxmi Vahini’ functions mobiling in a van. The capital of this institution is Rs. One crore and it provides various types of banking facilities available to villages by going from village – to – village.

Question 3.
Name the metallic money?
Answer:
Consumption goods, such as grocery, salts, fish, animals, capital goods and jwellery and gems such as shells, valuable metal are known as metallic money.

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Question 4.
What do you mean by NABARD?
Answer:
The full name of NABARD is National Bank for Agriculture and Rural Development. This institution fulfils the loans given by the Land Development Banks, Cooperative Banks and Commercial Banks, etc. for tire development of agriculture and rural areas. It is supreme institution related to rural and agricultural credits.

MP Board Class 10th Social Science Chapter 17 Short Answers Type Questions

Question 1.
Discuss briefly the Rural Bank of Bangladesh.
Answer:
A solid process of rural bank have been developed in Bangladesh through Self-help Groups. There are 60 lakh people under debt in these banks who are spread in 40,000 villages of Bangladesh. This programme was started by Mohammad Yunus in 1970. These rural banks have significantly contributed for the fulfilment of loan related needs of poors. Mohammed Yunus was honoured Nobel Prize in 2006 for the same work.

Question 2.
What are the secondary functions of money?
Answer:
The secondary functions of money are as under:

1. Basis for deferred payment:
Money has made it possible and convinent that the payment of dues can be made of a later date in future.

2. Store of exchange value:
After the introduction of money it has been very convinent to accumulate income and wealth to meet future requirements.

MP Board Class 10th Social Science Chapter 17 Long Answer Type Questions

Question 1.
What is paper money? Give its kinds.
Answer:
Paper money or currency notes, printed on paper are issued by the government and legally acceptable within the country. It has the face value only and accepted at the printed face value

What is paper money? Give its kinds.

1. Representative Paper Money:
This paper money represents cent percent gold, silver and standard coins kept in reserve against their issue.

2. Convertible Paper Money:
Under this issue of notes the government promises to pay on demand the face value of notes in terms of real value i.e. gold silver and standard coins. Generally proportionate reserve is maintained on issue of convertible paper money in the form of gold silver and government documents. In India notes worth Rs. 2, 5, 10, 20, 50, 100 and Rs. 500 are convertible paper money. It is issued by Reserve Bank of India.

3. Inconvertible Paper Money:
The government does not promise to repay back the face value in metallic terms of real/value. In our country one rupee note is non – convertible paper money. It is issued by Secretary, Ministry of Finance.

4. Fiat Money:
It is also known as emergency money issued by the government to meet the emergency requirement of funds. Behind this issue metallic reserve is not kept.

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Question 2.
Explain various methods of extending loan by banks?
Answer:
The bank adopts the following methods for advancing loans:
1. Granting Loans:
The main function of the bank is to lend money at rates higher titan the rate of deposit. The excess interest earned by the bank is its profit. These loans are granted on the security and surety.

2. By Allowing an Overdraft:
Customers having current account in the bank are provided the facility to draw from the bank more than their deposit as per arrangement with the bank only reputed and trustworthy customers are granted this facility. The bank charges interest on overdraft.

3. Cash Credit:
Under this method the borrower opens on account with the bank. The bank sanctions the loan and credits the amount in borrower’s name. He withdraws money as and when required. After the period of loan in over the borrower returns the money with interest. This is the method of granting loans.

4. Discounting Bills:
The bank advances loans on the security of bills and hundies, the practice is known as discounting of the bill. The bank charge interest for the period between the discounting of the bill to the due date of the bill. This is the safest method of advancing loan because the bill bears the security of both the drawee and drawer.

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