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Answer this question according to the chapter money and credit class 10th?
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Answer this question according to the chapter money and credit class 1...
Money and Credit in Class 10th
Money and credit play crucial roles in the economy by facilitating transactions and promoting economic growth. Let's delve into the concepts of money and credit as outlined in the Class 10th chapter.

Money
- Money serves as a medium of exchange, unit of account, store of value, and standard of deferred payments.
- Various forms of money include currency, demand deposits, and electronic money.
- The central bank controls the money supply to regulate inflation and economic stability.

Credit
- Credit enables individuals and businesses to borrow funds for various purposes.
- Formal sources of credit include banks, cooperatives, and microfinance institutions.
- Informal sources of credit like moneylenders may charge exorbitant interest rates, leading to debt traps.

Role of Money and Credit
- Money and credit facilitate economic transactions by providing a medium of exchange and enabling borrowing.
- Adequate access to credit can spur investment and economic growth.
- Sound monetary and credit policies are essential for maintaining price stability and financial inclusion.

Challenges
- Lack of access to credit in rural areas hinders agricultural productivity and rural development.
- Over-reliance on informal credit sources can lead to debt burdens and financial distress.
- Ensuring financial literacy and consumer protection is crucial in the credit market.
In conclusion, understanding the functions of money and credit is vital for individuals and policymakers to promote economic development and financial stability. By addressing the challenges and promoting responsible borrowing practices, societies can harness the power of money and credit for inclusive growth.
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Answer this question according to the chapter money and credit class 10th?
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