A presentation useful to the 10th graders in the CBSE stream.

1. 1abdul shumz

2. abdul shumz 2

3.  In how many sectors economic activities can
be divided?
 Which sectors produce goods?
 Which sector provide services?
 Name the economic term for the medium
which was generally accepted for buying of
goods & services?
3abdul shumz

4.  LET US DISCUSS AND LEARN :
Barter system,
Origin of money,
Functions of money,
Modern forms of money,
Functions of bank,
Different sources credit .
4abdul shumz

5. 5abdul shumz

6.  What were the needs of primitive man?
 How did primitive man satisfy his
needs?
 With the passage of time, why it
became impossible for a man to
satisfy his wants by producing all the
desired things?
 How man solved his problem?
6abdul shumz

7. Barter system refers to
that system by which
one commodity is
exchanged for another
without use of money.
7abdul shumz

8. What type of
problem arised in
barter system?
8abdul shumz

9. See this example-
I have a horse .I want to
exchange horse with
shoes and wheat.
What type of problem arised
in this situation ?
Will he cut his horse in
pieces?
9abdul shumz

10. I produce cloth .I want to
exchange cloth with milk and
rice.
How much quantity of cloth
will be exchanged for milk
and rice ?
What type of problem
arised in this situation ?
See this example-
10abdul shumz

11. See this example-
I grow vegetables .By
exchanging vegetables I get
other things.
Can I store vegetables for
my future needs ?
What type of
problem arised
in this
situation?
11abdul shumz

12.  Problem of double-
coincidence.
 Problem of divisibility.
 Lack of measure of value.
 Problem of store of value.
12abdul shumz

13. How man solved the
problem of double
coincidence of wants?
How man solved the other
problems of Barter
System?
13abdul shumz

14. 14abdul shumz

15.  Money is anything
which is generally
accepted by the people
as a common medium
of exchange.
15abdul shumz

16. Medium of exchange.
Measure of value.
Store of value.
Standard of deferred
payments.
Transfer of value.
16abdul shumz

17.  What was the mode of exchange prior to
the introduction of coins?
 What metals were used to make coins till
last century?
 What are the modern forms of money ?
17abdul shumz

18.  Commodity money.
Grains Animals
18abdul shumz

19. 19abdul shumz

20. abdul shumz 20
https://www.youtube.com/watch?v=0IYzso
4PAZc
https://www.youtube.com/watch?v=0IYzso
4PAZc
https://youtu.be/0IYzso4PAZc

21. 21abdul shumz

22. The modern currency is without any use
of its own as a commodity.
Why is it accepted as money ?
Why do we accept paper money?
22abdul shumz

23. Why in modern times paper money is also becoming inconvenient ?
Problem carrying
large amounts
Problem of counting
big paymment Problem of safety
What are the convenient forms of money nowadays?
23abdul shumz

24. Cheque
24abdul shumz

25.  A cheque is used for
payments.The payer who has an
account with the bank,directs the
bank to make payment for a
specific amount, to a person in
whose name the cheque has
been made or the bearer of the
cheque.
25abdul shumz

26. Features of cheque
1. Name of person
to whom
payment has to
be made .
2. Date
3. Amount in words
4. Amount in figurs
5. Signature of the
a/c holder
6. Bank a/c number
7. Name of bank
and branch
8. Cheque no.
9. A/C payee
26abdul shumz

27.  What do people do with their extra
money?
 Why people deposit money in the
banks ?
 When the deposits can be withdrawn
by depositor from the bank ?
 What do the banks do with the
deposits which they accept from the
public?
27abdul shumz

28.  It accepts deposits.
 It gives loans.
28abdul shumz

29. How do banks earn ?
Bank charge a higher interest rate on
loans than what they offer on
deposits.
The difference between what is
charged from borrowers and what is
paid to depositors is their main
source of income.
29abdul shumz

30. Loan refers to an
agreement in which the
lender supplies the
borrower with money,
goods, or services in return
for the promise of future
payment ?
30abdul shumz

31. Why people demand for loan?
-To purchase inputs of agriculture.
-To repay their previous loans.
-To satisfy their unproductive needs.
-To purchase plants ,machinary,
equipments.
-To setting up various business units.
-To buy various luxuxies like –car,
computer, AC, flat ,house etc.
31abdul shumz

32. 32abdul shumz

33. 33abdul shumz

34.  Why did Salim need credit ?
 What was the risk ?
 What was the outcome?
 Why did Swapna need credit ?
 What was the risk in her case ?
 What was the outcome ?
 What term can be used to explain Swapna’s
situation ?
34abdul shumz

35. Debt trap refers to that
situation in which borrower
finds it very difficult to
repay the loan.
35abdul shumz

36. Collateral
Collateral is an asset that the borrower
owns (such as land ,building, vehicles ,
livestock etc ) and uses this as a
guarantee to a lender until the loan is
repaid. If borrower fails to repay the loan ,
the lender has right to sell the collateral
to obtain payments.
36abdul shumz

37. 37abdul shumz

38. When a person borrows funds
certain terms are settled.
These include interest rate,
collateral ,documentation,
mode of payment, duration of
loan etc. All these together are
known as Terms of Credit.
38abdul shumz

39.  What are the various
sources of credit for
rural families ?
 Among these sources
of credit which sources
of credit work under
the supervision of RBI?
 Which sources of credit
do not work under the
control of RBI?
39abdul shumz

40.  Banks and Co operatives
 Function under control of
RBI
 Cheap interest rate
 Collateral required
 More documentation
 Loans for productive
purposes
 Systematic in their
functioning
 Moneylenders ,
Traders , Landlords
,Friends, Employers
,Relatives
 Not function under control
of RBI
 High interest rate
 Credit even without
collateral
 Less documentation
 Loans even for non-
productive purposes
 Not systematic in
functioning
Formal sources Informal sources
40abdul shumz

41. Why the share of formal sector credit is higher for the richer
households, compared to poor households?
41abdul shumz

42.  Cheap and affordable credit is crucial for
the country’s development.
 It is necessary that banks and cooperatives
increase their lending particularly in the
rural areas, so that the dependence on
informal sources of credit reduces.
 Secondly, while formal sector loans need to
expand, it is also necessary that everyone
receives these loans.
42abdul shumz

43.  Numbers of members are large in a cooperative.
 It accepts deposits from its members.
 With these deposits as collateral, the Cooperative
has obtained a large loan from the bank.
 These funds are used to provide loans to
members.
 Once these loans are repaid, another round of
lending can take place.
43abdul shumz

44. 44abdul shumz

45. -A typical SHG has 15-20 members, usually belonging to one
neighbourhood, who meet and save regularly.
-Saving per member varies from Rs 25 to Rs 100 or more, depending on the
ability of the people to save.
-Members can take small loans from the group itself to meet their needs.
-The group charges interest on these loans but very less .
- After a year or two, if the group is regular in savings, it becomes eligible
for availing loan from the bank.
Loan is sanctioned in the name of the group and is meant to create self
employment opportunities for the members.
-Any case of non repayment of loan by any one member is followed up
seriously by other members in the group.
-Because of this feature, banks are willing to lend to the poor women when
organised in SHGs, even though they have no collateral as such.
-Thus, the SHGs help borrowers overcome the problem of lack of
collateral.
45abdul shumz

46. Fill in the blanks:
(i) Majority of the credit needs of the
______________households are met from informal sources.
(ii) ___________________costs of borrowing increase the
debt-burden.
(iii) __________________ issues currency notes on behalf of
the Central Government.
(iv) Banks charge a higher interest rate on loans than what
they offer on __________.
(v) _______________ is an asset that the borrower owns and
uses as a guarantee until the loan is repaid to the lender.
Exercise
46abdul shumz

47. 2. Choose the most appropriate answer.
(i) In a SHG most of the decisions regarding savings and loan
activities are taken by
(a) Bank.
(b) Members.
(c) Non-government organisation.
(ii) Formal sources of credit does not include
(a) Banks.
(b) Cooperatives.
(c) Employers.
Exercise
47abdul shumz

48. Pl mail ur suggestions to:
abdul.shumz@gmail.com
48abdul shumz