Why are demand deposits considered as money?

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Chapter 3 NCERT Class 10 Economics SOLUTIONS

3. Why are demand deposits considered as money?

Question:

Why are demand deposits considered as money?

Answer:

Demand Deposit is payable by way of cheque or money withdrawal slip. That's why demand deposits are considered as money.

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(All Q's of this Chapter solved)

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The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.

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Choose the most appropriate answer. (i) In a SHG most of the decisions regarding savings and loan activities are taken by

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Fill in the blanks: (i) Majority of the credit needs of the _________________households are met from informal sources.

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In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.

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Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.

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Analyze the role of credit for development.

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In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?

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What are the reasons why the banks might not be willing to lend to certain borrowers?

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What is the basic idea behind the SHGs for the poor? Explain in your own words.

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Why do we need to expand formal sources of credit in India?

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Look at a 10 rupee note. What is written on top? Can you explain this statement?

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How do banks mediate between those who have surplus money and those who need money?

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How does money solve the problem of double coincidence of wants? Explain with an example of your own.

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In situations with high risks, credit might create further problems for the borrower. Explain.

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Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?

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Should there be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders? Why would its task be quite difficult?

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Why should credit at reasonable rates be available for all?

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What are the differences between formal and informal sources of credit?

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Tick the correct answer. (i) Over the years, Rama’s debt (a) will rise.

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Can everyone in Sonpur get credit at a cheap rate? Who are the people who can?

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Why will Arun have a higher income from cultivation compared to Shyamal?

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Compare the terms of credit for the small farmer, the medium farmer and the landless agricultural worker in Sonpur.

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Underline the various uses of credit in Sonpur in the above passages.

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List the various sources of credit in Sonpur.

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Fill in the blanks choosing the correct option from the brackets. While taking a loan, borrowers look for easy terms of credit.

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Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?

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Why do lenders ask for collateral while lending?

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What are the reasons that make Swapna’s situation so risky? Discuss factors – pesticides; role of moneylenders; climate.

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Supposing Salim continues to get orders from traders. What would be his position after 6 years?

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Fill the following table : Why did they need credit?

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What do you think would happen if all the depositors went to ask for their money at the same time?

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Tick the correct answer. After the transaction between Salim and Prem, (i) Salim’s balance in his bank account increases, and Prem’s balance increases.

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M. Salim wants to withdraw Rs 20,000 in cash for making payments. How would he write a cheque to withdraw money?

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Let us Try and Understand How Cheque payments are made and Realised with an example.

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Can you think of some examples of goods / services being exchanged or wages being paid through barter?

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How does the use of money make it easier to exchange things?

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