Notes of Money and Credit Class 10 Short Notes CBSE

Notes of Money and Credit Class 10 Short Notes CBSE

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✓ Notes of Money and Credit Class 10

✓ Money and Credit Class 10 Short Notes

Ch Money And Credit Class 10 Notes

✓ Notes for Money and Credit class 10

✓ Notes of Money and Credit Class 10 Short Notes CBSE

Money and Credit

• In the early Times people used to exchange one commodity for another depending on their requirement under the barter system. However, exchanging goods India in the barter system required double coincidence of wants.

However money eliminates the need for double coincidence of wants. Since money enables the exchange process it is also called a medium of exchange. Early forms of money wear things of daily use.


Money is anything which is commonly accepted as a medium of exchange and in discharge of debts.


Before the introduction of coins of objects where used as money. For example since the very early ages Indians used grains and cattle as money. There after came the use of metallic coins – gold, silver, copper coins.


Modern currency :

  • Uses paper notes and coins made of relativity in expensive metals.
  • Has no value of its own.
  • Has a value only because it is authorised by the government of the country.


In India the reserve Bank of India is the only legal authority that can issue currency notes and coins on behalf of the central government. The rupee is India’s currency and nobody can you use to accept a payment made in rupees in India.


People deposit their extra cash in the bank. Bank in addition to keeping the money also page interest on the deposit to the depositor. The bank deposites are also called demand deposits.


a person simply needs to have an account with the bank to deposit money. A check can we used to make payment directly from a Bank deposit without using cash.


Check is a written instruction to a bank by an account holder to pay a specific some to a specific person from his deposit. A check has all the information about the person to home payment is to be made the amount and date of payment and signature of account holder swing the check.

✓✓ Double Coincidence of Wants

When both the parties have to agree to sale and buy each others commodities. This is known as the double coincidence of once once wants.


✓✓ Medium of Exchange

Money acts as an intermediate in the exchange processes. It is known as the medium of exchange.


✓✓ Currency

Currency is the modern forms of money include currency paper notes and coins.


✓✓ Deposits

A sum of money paid into a bank is known as deposits.


✓✓ Bank

A bank is a financial institution licenced to receive deposits and creates loans.


✓✓ Demand Deposits

People also have the provision to be draw the money as and when they require. Since the deposits in the bank accounts can be be done on demand. This deposits are known as demand deposits.

✓✓ Cheque

A check is an order to a bank to pay a status some from the bezos account written on a specially printed form.

✓ Credit Terms and Types

As per the reserve Bank of India bank holds about 15% of their deposits as cash to arrange for daily withdrawals by depositors.

A major person of the remaining deposits is used by banks to give loans to people. The depositors of a bank are allowed to draw the deposits on demand and are paid interest on their deposits. It to the bank along with interest.

The interest charge on loans is more than the interest paid by the banks on deposits. The difference between the interest charge on loans and the interest paid on deposits is the banks in come or profit.

The loan given by a bank is also referred to credit.

The idea idea behind self help groups shgs is to organised the rural poor into self help groups SS jeans and collect their savings. Members can take a small loans from the group itself to meet their own needs.

Alone or credit is subject to certain conditions that the borewell must agree to. This conditions are called terms of credit and include :

a specified rate of interest. Security against the loan to recover the money if the bore face to repeat it. This security is called colateral. the acids accepted as collateral are land or property very girls livestock standing crops and Bank deposits. And documents like proofs of Identity residence employment and income to a well. The lander reserves the right to sale the collector in case of non repayment to recover the loan amount.


Collateral is an asset that the borrower owns under bracket such as land building vehicles life story extra and uses these as a guarantee to the London until the loan is prepared.

Formal and informal credit.

The different sources of credit are :

banks traders cooperative societies landlords money landers relatives and friends.


Formal credit is generally available with the banks and cooperative. They charge lesser rates of interest than informal institutions. The reserve Bank of India RBI supervisor the functioning of formal sources of loan.


Informal lenders include money lenders traders employers relatives and friends etc. They charge much higher interest on loans. There is no one to stop them from using unpaired means to get their money back.

✓✓ Credit

Credit is the ability of a customer true of 10 goods or services before payment based on the trust that payment will be made in the future.


✓✓ Loan

Loan is a thing that is borrowed specially a sum of money that is expected to be paid back with interest.


✓✓ Borrower

Borwar is a person or organ organisation that takes and uses something belonging to someone else with the intention of returning it.


✓✓ Collateral

Something placed as security for repayment of alone to be forfeited in the event of a default.


✓✓ Asset

An asset is an item of property owned by a person or company regarded as having value and available to meet dips dips and commitments or legacies.


✓✓ Lender

Lender is an organisation or person that lens money.

✓✓ Interest

Interest is that types of money which is paid regularly at a particular rate for the use of the money lant or dealing the repayment of the of a debt.

Informal Sector

Informal Sector is those type of sectors that is neither text nor monitord by any form of government government and it is also known as grey economy which is the part of an economy. It is not accountant for in official statistics.

✓✓ Formal sector

Formal Sector is such type of sector that is recognised as income source on which income taxes must be paid and this sector which a compasses all jobs with normal hours and regular wages.

✓✓ Reserve Bank of INDIA ( RBI )

RBI Rserve Bank of India ( RBI ) is India's Central banking and monetary authority.

RBI regulates loans offered by banks and non banking financial institutions to government entities business and consumers and controls the availability of funds in the financial system for credit.

✓✓ Self Help Groups ( SHGs )

Self Help Groups ( SHGs ) is commonly known as support groups are groups of peoples who provide mutual support to each other. Voluntary association preferably from the same socio economic background promotes small savings among its members.

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FAQs :-

WHAT IS MONEY AND CREDIT CLASS 10TH?

Money is anything which is commonly accepted as a medium of exchange and in discharge of debts.While,Credit is the ability of a customer true of 10 goods or services before payment based on the trust that payment will be made in the future.

WHAT IS CREDIT CLASS 10 CBSE?

Credit is the ability of a customer true of 10 goods or services before payment based on the trust that payment will be made in the future.

IS CLASS 10 ECONOMICS EASY?

Class 10 economics is not so easy nor so hard, it is average.

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