SOCIAL W ORKSHEET
ECONOMICS CHAPTER 3- MONEY AND CREDIT
S.N MARK
O S
1. W hy is currency accepted as a medium of exchange? 1
A. It is made of precious metals which have intrinsic value.
B. It is authorised by the government of a country.
C . It is made of things we use in everyday life.
D. It is authorised by the citizens of a country.
2. Answerthe following questions on double coincidence of wants. 3
(a) W hat does double coincidence of wants mean?
(b) G ive an example of double coincidence of wants.
(c) State one disadvantage of double coincidence of wants.
3. Kumar wants to make a payment to his landlord. He has money in 1
his bank account but no physical cash. Mention one way in which
he can still make the payment.
4. Ibrahim gives a cheque of Rs. 10, 000 to Sahil. W hat type of 1
medium of exchange did he use?
A. Paper note B. Metallic coins C. Barter system D. Demand
deposit
5. W hen Charu learnt that banks provide loans, she wondered how 3
banks make money. Explain in three points where banks get their
income from.
6. Observe the graph given below and answer the questions based
on it.
A. W hich of the following sources of credit will MOST LIKELY
lead to a debt trap?
B. Organize the sectors into formal and informal.
C. Based on the image, which of the following statements is
TRU E?
i. About three- fourth of the credit in a rural household
comes from the informal credit sources.
ii. The single largest source of credit in the rural
households is a formal credit source.
iii. The single largest source of credit in the rural
households is supervised by the RBI.
iv. About half the credit in rural households comes from
formal credit sources.
D. Based on the graph, what percentage of loans will
definitely require a collateral in Indian rural households?
7. W hich of the following situations is a correct example for double
coincidence of wants?
A. David has a horse and he wants a cow. Riya has a cow and
wants to buy a horse. B. Arhaan has two cows and wants a horse.
Afreen has a cow and wants a horse.
C . Suresh has a bull and he wants a cow. Ahmed has a cow and
wants a horse.
D. Aleena has a horse and a bull. Manjunath has a cow and wants a
bull.
8. Lakshmi drew the following graph showing an ideal distribution of
sources of credit where everyone could have a fairer access to
credit.
Identify A and B.
A. A - money lenders, B - cooperative societies
B. A - cooperative societies, B - money lenders
C. A - money lenders, B - friends and relatives
D. A - cooperative societies, B - banks
9. There are two statements given below, marked as Assertion (A)
and Reason (R). Read the statements and choose the correct
option.
Assertion (A): Richer households have more access to formal
sources of credit than poorer households.
Reason (R): Poorer households do not need credit from formal
sources.
A. A is true but R is false.
B. A is false but R is true.
C . Both A and R are true and R explains A.
D. Both A and R are true but R does not explain A.
10. W hat do you understand by the Double Coincidence of W ants? 2
11. W hat is the Barter system? W hat are the limitations of the Barter 2
system?
12. How are deposits with the banks beneficial for an individual as well 3
as for the nation? Explain with examples.
13. 'Business is all about solving people's problems - at a profit.’ 5
Explain how banks function like a business with respect to the
above statement.
14. “ The credit activities of the informal sector should be 5
discouraged.” Support the statement with arguments.
15. Yellamma, a weaver in G adchiroli in Maharashtra is a member of a 4
weavers' cooperative. She deposits a certain amount of money
every month. The cooperative uses this pooled money as
collateral and gets a huge loan from the bank. This loan is then
distributed among the members of the cooperative. She has
received a loan twice for her needs like buying raw materials and
tools. Her fellow weavers have taken loans to build mud houses
and workshops as well. She has re- paid both her loans.
Manjunath, her nephew is also a weaver but does not want to join
the cooperative. He has already taken two loans from the local
moneylender at a high- interest rate.
(a) W hat types of needs are met by the loans?
(b) How did Yellamma get a loan from the cooperative?
(c) W ho is more likely to get credit from a formal source,
Manjunath or Yellamma?
(d) Mention any one other occupation that generally forms
cooperatives.
