PPT: Money and Credit | Social Studies (SST) Class 10 PDF Download

 Page 2


MONEY AS A MEDIUM OF EXCHANGE
Money transactions are common in daily life, including:
Grocery purchases
Public transport fares
Restaurant orders
Utility bill payments
Event ticket purchases
Money facilitates exchanges, allowing goods and services to be traded
efficiently without needing a direct barter system, such as a shoe
manufacturer selling shoes to buy wheat.
Page 3


MONEY AS A MEDIUM OF EXCHANGE
Money transactions are common in daily life, including:
Grocery purchases
Public transport fares
Restaurant orders
Utility bill payments
Event ticket purchases
Money facilitates exchanges, allowing goods and services to be traded
efficiently without needing a direct barter system, such as a shoe
manufacturer selling shoes to buy wheat.
Money has transitioned from grains, cattle, and
metallic coins to modern currency and bank
deposits:
Early forms included grains, cattle, and
metallic coins like gold, silver, and copper.
Modern currency consists of paper notes
and coins authorized by the government.
In India, the Reserve Bank issues currency
notes, and rupee is legal tender.
Bank deposits offer a safe way to store
excess cash and earn interest.
MODERN FORMS OF MONEY
Page 4


MONEY AS A MEDIUM OF EXCHANGE
Money transactions are common in daily life, including:
Grocery purchases
Public transport fares
Restaurant orders
Utility bill payments
Event ticket purchases
Money facilitates exchanges, allowing goods and services to be traded
efficiently without needing a direct barter system, such as a shoe
manufacturer selling shoes to buy wheat.
Money has transitioned from grains, cattle, and
metallic coins to modern currency and bank
deposits:
Early forms included grains, cattle, and
metallic coins like gold, silver, and copper.
Modern currency consists of paper notes
and coins authorized by the government.
In India, the Reserve Bank issues currency
notes, and rupee is legal tender.
Bank deposits offer a safe way to store
excess cash and earn interest.
MODERN FORMS OF MONEY MODERN FORMS OF MONEY
Demand deposits allow withdrawals on
demand and enable transactions through
checks.
Checks against demand deposits facilitate
direct payment instructions to banks.
Demand deposits and currency together
constitute modern money.
Banks are crucial in managing demand
deposits and facilitating check payments.
Page 5


MONEY AS A MEDIUM OF EXCHANGE
Money transactions are common in daily life, including:
Grocery purchases
Public transport fares
Restaurant orders
Utility bill payments
Event ticket purchases
Money facilitates exchanges, allowing goods and services to be traded
efficiently without needing a direct barter system, such as a shoe
manufacturer selling shoes to buy wheat.
Money has transitioned from grains, cattle, and
metallic coins to modern currency and bank
deposits:
Early forms included grains, cattle, and
metallic coins like gold, silver, and copper.
Modern currency consists of paper notes
and coins authorized by the government.
In India, the Reserve Bank issues currency
notes, and rupee is legal tender.
Bank deposits offer a safe way to store
excess cash and earn interest.
MODERN FORMS OF MONEY MODERN FORMS OF MONEY
Demand deposits allow withdrawals on
demand and enable transactions through
checks.
Checks against demand deposits facilitate
direct payment instructions to banks.
Demand deposits and currency together
constitute modern money.
Banks are crucial in managing demand
deposits and facilitating check payments.
LOAN ACTIVITIES OF BANKS
Banks manage deposits by:
Keeping about 15% as cash reserves for withdrawals.
Using the majority for loans to individuals and businesses.
Supporting various economic activities through loans.
Acting as intermediaries between depositors and borrowers.
Charging higher interest rates on loans than on deposits.
Earning income from the interest rate differential between loans and
deposits.