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

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Money & Banking
Money is anything that people commonly accept when buying goods and services or paying 
debts. Think of it as the universal language of trade that everyone understands and trusts.
Medium of Exchange
Money helps people 
trade goods and services 
easily. Instead of 
swapping items directly, 
we use money as the go-
between.
Barter Exchange
Before money existed, 
people traded goods 
directly - like exchanging 
shoes for wheat. This is 
called barter or the CC 
(commodity for 
commodity) economy.
Double Coincidence
In barter, both people 
must want what the other 
has. A shoe maker needs 
to find a wheat farmer 
who also wants shoes - 
quite difficult!
Evolution of Money Forms
1
Ancient Times
Indians used grains and cattle 
as money. These items had real 
value and were widely 
accepted.
2
Metallic Coins
Gold, silver, and copper coins 
became popular because they 
were durable, portable, and 
valuable.
3
Paper Money
Currency notes made 
transactions easier by being 
lighter and more convenient 
than heavy coins.
4
Digital Money
Credit cards, cheques, and 
online banking emerged as 
transaction volumes grew, 
making payments even faster.
How Banks Function
Banks play a crucial role in our economy by 
connecting savers with borrowers. Their main job is 
giving loans to businesses and individuals while 
earning interest as profit.
Bank Deposits - The Foundation
Time Deposits: Money locked away for a specific period, like 
fixed deposits
Demand Deposits: Money you can withdraw anytime using 
cheques or ATM cards
The magic of cheques is that you can pay someone 
without using physical cash - just write a cheque 
against your demand deposit!
Understanding Credit
Credit means lending money, goods, or services with the promise of future repayment plus 
interest. It's like borrowing today to pay tomorrow.
1
Positive Credit
Saleem gets a loan for his business. He 
uses it to buy materials, complete 
production on time, and earn more money 
to repay the loan.
2
Debt Trap
Swapana borrows money for farming, but 
her crops fail. Now she can't repay the 
loan and gets stuck in a cycle of debt.
Terms of Credit - What You Need to Know
Interest Rate
The extra money you 
pay for borrowing - like 
rent for using someone 
else's money.
Collateral
Something valuable you 
own (land, house, car) 
that the lender can take 
if you don't repay the 
loan.
Repayment Mode
How and when you'll pay 
back the money - 
monthly, yearly, or in one 
lump sum.
Formal vs Informal Credit
Formal Sector
Banks and Cooperatives provide loans
Lower interest rates make borrowing affordable
RBI supervision ensures fair practices
Proper documentation and legal protection
Informal Sector
Moneylenders, traders, relatives give loans
Higher interest rates can be crushing
No regulation - unfair practices possible
Often exploits desperate borrowers
Self-Help Groups - Community Banking
Self-Help Groups (SHGs) organize rural communities to save money together and provide 
small loans to members at fair interest rates.
01
Form Groups
Rural people organize into small groups of 
10-20 members who know and trust each 
other.
02
Regular Savings
Each member contributes Rs 25-100 monthly 
based on their ability to save money.
03
Internal Lending
Members can borrow small amounts from 
the group's savings at lower interest rates 
than moneylenders charge.
04
Bank Linkage
Groups with regular savings records become 
eligible for larger bank loans, connecting 
them to formal credit.