Money and credit project for class 10th

SOCIAL SCIENCE PROJECT CLASS 10
MONEY AND CREDIT

1. MONEY AND CREDIT
- Aditya Vadageri, Class X

2. I would like to express my special thanks of gratitude to my teacher Mrs.
Ruchi Kulkarni as well as our principal Dr. Aarti Hemrajani who gave me the
golden opportunity to do this wonderful project on the topic “MONEY AND
CREDIT”, which also helped me in doing a lot of Research and I came to
know about so many new things.
I am really thankful to them.
Secondly I would also like to thank my parents and friends who helped me
a lot in finishing this project within the limited time. I had made this project
not only for marks but to also increase my knowledge .
THANKS AGAIN TO ALL WHO HELPED ME
Acknowledgement

3. CONTENTS
•Money.
Introduction
•Money as a medium of exchange.
Barter System
Limitations of Barter System
•Modern forms of money.
Deposits with Banks.
Currency.
•Loan Activities of Banks.
•Credit.
Formal Loans.
Informal Loans.
•Terms of Credit.
•Self – Help Groups (SHGs).
Functioning.
Objectives.
Advantages.

4. It is anything which has
common acceptability as a
means of exchange, a measure
and store of value.
MONEY

5. MONEY AS A MEDIUM OF EXCHANGE
Barter System:
The barter system is a system of trade that does
not involve currency (or money). The barter
system is system in which one good of value is
traded with another good of equal value.

6. MONEY AS A MEDIUM OF EXCHANGE
Limitations of barter system:
Lack of double coincidence of wants.
Lack of store of value.
Lack of standard for deferred payments.
Lack of a common unit of value.

7. MODERN FORMS OF MONEY
Deposits with Banks:
The other form in which people hold money is
as deposits with banks.

8. MODERN FORMS OF MONEY
CHEQUE

9. CURRENCY

MODERN FORMS OF MONEY

10. MODERN FORMS OF MONEY
The Reserve Bank Of India (RBI):
In India the Reserve Bank Of India issues
currency notes on behalf of the central
government. As per Indian law, no other
individual or organization is allowed to issue
currency.

11. LOAN ACTIVITIES OF BANK

12. CREDIT
Formal Loans:
•Types:
Banks.
Cooperatives.
•Features:
Low rate of
interest.
Easy repayment.
Documentation
Required.
Informal Loans:
•Types:
Moneylenders.
Friends.
Traders.
Relatives.
• Features:
High rate of interest.
Repayment is not easy.
No documentation.

13. TERMS OF CREDIT
•Collateral: Collateral is an asset that the
borrower owns (such as land, building, vehicle,
live stocks, deposits with banks) and uses this as
a guarantee to a lender until the loan is repaid.
•Documentation.
•Tenure.
•Mode of repayment.
•Rate of Interest.

14. SELF – HELP GROUPS (SHGs)
FUNCTIONING
•15 to 20 members.
•Neighbours who meet and save regularly.
•Savings rupees 25/- to rupees 100/- (varies per member).
•Grants small loans to members.
•Does not ask for collateral.
•Any non repayment is seriously followed by other members.
OBJECTIVES
•To inculcate the savings and banking habits among
members.
•To gain economic prosperity through loan/credit.
•To create group feeling among women.

15. SELF – HELP GROUPS (SHGs)
ADVANTAGES
•Help borrowers overcome the problem of lack of collateral.
•Timely loans.
•Reasonable interest rate.
•Helps women to become self – reliant.
•Provides a platform to discuss and act on social issues.

16. Thank You