CLASS 10 NOTES
SOCIAL SCIENCE
Money and Credit
PRASHANT KIRAD
, PRASHANT KIRAD
Money and Credit
Barter System
The barter system is an early method of trade where goods and services are
directly exchanged for other goods and services without using money.
Double coincidence of wants The double coincidence
Money as a medium of exchange of wants refers to the
situation in a barter
The use of money is a very large part of our Everyone
system where both
life. Money is widely used as a medium of exchange as
goods are exchanged with money. parties must want what
the other offers in
Modern forms of money order to make a trade.
CURRENCY:
Currency is a generally accepted form of money, Money
including coins and paper notes.
In India, the Reserve Bank of India (RBI) issues Anything which is
currency notes on behalf of the central
legalized by the
government.
The law legalizes the use of ‘rupee'( ) as a medium government of the
of payment that cannot be refused in setting country that helps in
transactions in India. medium of exchange and
Therefore the 'rupee’ ( ) is widely accepted as a measure the value of
medium of exchange. goods and services.
Deposits with banks
Other forms in which people hold money are deposits with banks. Money
deposited in Banks is safe with the bank and people also get interest on the
deposited amount.
The deposits in the bank accounts can be withdrawn on demand. Hence,
these deposits are also called demand deposits.
Cheque Facility
A cheque is a paper instructing the bank to pay a specific amount from the
person's account to the person in whose name the cheque has been issued.
Modern Banking System
Banks mediate between those who have extra funds (the depositors) and
those who need those funds (the borrowers).
Banks charge a higher interest rate on loans than what they offer on
deposits. This difference between interest is bank's main source of income.
SOCIAL SCIENCE
Money and Credit
PRASHANT KIRAD
, PRASHANT KIRAD
Money and Credit
Barter System
The barter system is an early method of trade where goods and services are
directly exchanged for other goods and services without using money.
Double coincidence of wants The double coincidence
Money as a medium of exchange of wants refers to the
situation in a barter
The use of money is a very large part of our Everyone
system where both
life. Money is widely used as a medium of exchange as
goods are exchanged with money. parties must want what
the other offers in
Modern forms of money order to make a trade.
CURRENCY:
Currency is a generally accepted form of money, Money
including coins and paper notes.
In India, the Reserve Bank of India (RBI) issues Anything which is
currency notes on behalf of the central
legalized by the
government.
The law legalizes the use of ‘rupee'( ) as a medium government of the
of payment that cannot be refused in setting country that helps in
transactions in India. medium of exchange and
Therefore the 'rupee’ ( ) is widely accepted as a measure the value of
medium of exchange. goods and services.
Deposits with banks
Other forms in which people hold money are deposits with banks. Money
deposited in Banks is safe with the bank and people also get interest on the
deposited amount.
The deposits in the bank accounts can be withdrawn on demand. Hence,
these deposits are also called demand deposits.
Cheque Facility
A cheque is a paper instructing the bank to pay a specific amount from the
person's account to the person in whose name the cheque has been issued.
Modern Banking System
Banks mediate between those who have extra funds (the depositors) and
those who need those funds (the borrowers).
Banks charge a higher interest rate on loans than what they offer on
deposits. This difference between interest is bank's main source of income.
