Money_and_Credit_CBSE_Class10.irjrkdkdkk

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1. Money and Credit CBSE Class 10 | Economics | Modern Colourful Theme

2. Introduction to Money Money is anything that serves as a medium of exchange, store of value, and measure of value. It replaced the barter system.

3. Barter System and Its Drawbacks In the barter system, goods were exchanged for goods. Drawbacks included lack of double coincidence of wants, difficulty in storing wealth, and indivisibility.

4. Modern Forms of Money 1. Currency (coins, paper notes) 2. Deposits in banks 3. Cheques and online transfers 4. Digital payments (UPI, cards)

5. Functions of Money 1. Medium of Exchange 2. Store of Value 3. Measure of Value 4. Standard of Deferred Payments

6. Credit and Its Importance Credit refers to an agreement where the borrower receives something of value now and agrees to repay the lender later. It helps promote growth and investment.

7. Types of Credit 1. Formal Credit: from banks and cooperatives 2. Informal Credit: from moneylenders, traders, relatives, etc.

8. Formal Credit System Formal credit sources are regulated by RBI. They charge reasonable interest and are available through proper documentation.

9. Informal Credit System Informal credit sources are not regulated. They may charge high interest rates and can lead to debt traps.

10. Credit and Terms of Credit Credit agreements specify interest rate, collateral, mode of repayment, and documentation. Terms vary across lenders.

11. Collateral An asset pledged by the borrower to secure a loan. It can be land, vehicle, gold, or any valuable asset.

12. Self Help Groups (SHGs) SHGs are small groups (usually of women) that pool savings and lend among members. They promote financial inclusion and empower rural people.

13. Role of Banks in Development Banks provide loans for agriculture, industry, education, and housing, supporting economic growth.

14. RBI and Its Role The Reserve Bank of India regulates money supply, supervises banks, and ensures financial stability.

15. Financial Inclusion Providing affordable financial services to all sections of society, especially the poor and rural population.

16. Conclusion Money and credit are essential for economic growth. A balanced credit system supports equality and development.

17. Formal vs Informal Credit Sources (Rural India)

18. Growth of Digital Payments (2010–2020)