Money and Credit - SST, Class 10

Introduction:
- Money and credit are essential components of the modern economy.
- Understanding the relationship between money and credit is crucial for economic stability and growth.

What is Money?
- Money is a medium of exchange that facilitates transactions.
- It serves as a store of value and a unit of account.
- Types of money include coins, currency, and bank deposits.

Functions of Money:
- Medium of exchange: Money enables the easy exchange of goods and services.
- Unit of account: Money provides a common measure of value for goods and services.
- Store of value: Money retains its value over time, allowing for savings and investment.

What is Credit?
- Credit is the ability to borrow money or goods with the promise of repayment in the future.
- It allows individuals and businesses to access resources beyond their immediate means.

Importance of Credit:
- Promotes economic growth: Credit facilitates investment and consumption, driving economic activity.
- Improves living standards: Access to credit allows individuals to purchase homes, cars, and other goods.
- Fosters entrepreneurship: Credit enables entrepreneurs to start and expand businesses, creating jobs and innovation.

Conclusion:
- Money and credit are essential components of the modern economy, playing a crucial role in economic activity and growth.
- Understanding the relationship between money and credit is vital for individuals, businesses, and policymakers.