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3. MONEY AND CREDIT

The chapter delves into the evolution and significance of money and credit within economic systems, emphasizing their role in facilitating transactions and supporting economic growth. It highlights the transition from traditional forms of money to modern banking systems, the dynamics of demand deposits, and the critical nature of credit for both individuals and enterprises. Additionally, it examines the challenges faced by various borrowers, especially in rural settings, and outlines the necessity of equitable access to formal credit sources.

Sections

  • 3

    Money And Credit

    This section explores the evolution, functions, and types of money, along with the significance of credit in social and economic contexts.

    Learning Practice

  • 3.1

    Money As A Medium Of Exchange

    This section explores the role of money as a medium of exchange, highlighting its evolution, the elimination of barter complexities, and modern transactions involving currency and bank deposits.

    Learning Practice

  • 3.2

    Modern Forms Of Money

    This section explores modern forms of money, particularly focusing on currency, banking systems, and digital transactions.

    Learning Practice

  • 3.3

    Cheque Payments

    This section discusses cheque payments, highlighting how they facilitate transactions between bank accounts, providing a safe and efficient means of settling payments without cash.

    Learning Practice

  • 3.4

    Loan Activities Of Banks

    This section discusses the roles of banks in providing loans and their significance in the economy, emphasizing both formal and informal credit systems.

    Learning Practice

  • 3.5

    Credit Arrangements In Sonpur

    The section discusses various credit arrangements in Sonpur, exploring the roles of formal and informal credit sources and their impact on farmers and laborers.

    Learning Practice

  • 3.6

    Terms Of Credit

    The section discusses the importance of credit in everyday economic life, outlining the different terms and types of credit available to borrowers.

    Learning Practice

  • 3.7

    Loans From Cooperatives

    Cooperative societies serve as an essential source of affordable credit for rural farmers, enabling them to finance agricultural needs and other expenses.

    Learning Practice

  • 3.8

    Formal Sector Credit In India

    This section discusses formal and informal credit systems, highlighting their differences, importance, and impact on different socio-economic groups.

    Learning Practice

  • 3.9

    Self-Help Groups For The Poor

    This section discusses the importance and functioning of Self-Help Groups (SHGs) in providing financial support to the poor, particularly women, in rural India.

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  • 3.10

    Grameen Bank Of Bangladesh

    Grameen Bank is a microfinance institution in Bangladesh that provides loans to the poor, especially women, facilitating their economic opportunities.

    Learning Practice

  • 3.11

    Exercises

    This section discusses the importance of credit and modern forms of money, highlighting their impact on the economy and everyday transactions.

    Learning Practice

References

NCERT Study Material

Class Notes

Memorization

What we have learnt

  • Money serves as a medium of...
  • Modern currency is issued b...
  • Credit can either enhance e...

Final Test

Revision Tests

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