UPSC Exam > UPSC Videos > NCERT Video Summary: Class 6 to Class 12 (English) > Money & Credit
Money & Credit Video Lecture | NCERT Video Summary: Class 6 to Class 12 (English) - UPSC
|
476 videos|360 docs
|
FAQs on Money & Credit Video Lecture - NCERT Video Summary: Class 6 to Class 12 (English) - UPSC
| 1. What is the role of money in the economy? |  |
Ans. Money plays a crucial role in the economy as a medium of exchange, unit of account, and store of value. It facilitates transactions, simplifies the exchange of goods and services, and serves as a common measure of value. Additionally, money enables economic growth by promoting specialization, investment, and economic stability.
| 2. How does credit contribute to economic growth? | |
Ans. Credit plays a significant role in economic growth by providing individuals, businesses, and governments with access to funds that they can use for consumption or investment purposes. It enables people to make purchases or investments they might not be able to afford immediately, thereby stimulating economic activity, creating jobs, and fostering economic development.
| 3. What is the difference between secured and unsecured credit? | |
Ans. Secured credit refers to loans or lines of credit that are backed by collateral, such as a house or a car. In case of default, the lender can seize the collateral as repayment. On the other hand, unsecured credit does not require collateral and is typically based on a borrower's creditworthiness. Examples include credit cards and personal loans. Unsecured credit carries higher interest rates to compensate for the increased risk for the lender.
| 4. How does the central bank control the money supply? | |
Ans. The central bank controls the money supply through various tools, such as open market operations, reserve requirements, and setting the discount rate. Open market operations involve buying or selling government securities, which influences the amount of money in circulation. Reserve requirements mandate the minimum amount of reserves banks must hold, affecting their ability to lend money. The discount rate is the interest rate at which banks can borrow from the central bank, which influences the cost of borrowing and lending.
| 5. What are the potential risks associated with excessive credit growth? | |
Ans. Excessive credit growth can lead to several risks, including financial instability and economic downturns. It can create asset bubbles, such as housing or stock market bubbles, which can burst and cause significant financial losses. Excessive credit can also lead to overleveraging, where individuals or businesses accumulate too much debt, making it difficult to repay. Additionally, it can contribute to inflationary pressures and increase the vulnerability of the banking system to defaults and financial crises.
Related Exams
About this Video
|
4.72/5 Rating |
|
Dec 19, 2024 Last updated |
Video Description: Money & Credit for UPSC 2024 is part of NCERT Video Summary: Class 6 to Class 12 (English) preparation.
The notes and questions for Money & Credit have been prepared according to the UPSC exam syllabus.
Information about Money & Credit covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Money & Credit.
Introduction of Money & Credit in English is available as part of our NCERT Video Summary: Class 6 to Class 12 (English) for UPSC & Money & Credit in
Hindi for NCERT Video Summary: Class 6 to Class 12 (English) course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for Money & Credit Video Lecture | NCERT Video Summary: Class 6 to Class 12 (English) - UPSC - UPSC full syllabus preparation | Free video for UPSC exam to prepare for NCERT Video Summary: Class 6 to Class 12 (English).
Information about Money & Credit
Here you can find the meaning of Money & Credit defined & explained in the simplest way possible.
Besides explaining types of Money & Credit theory, EduRev gives you an ample number of questions to practice Money & Credit tests,
examples and also practice UPSC tests.
|
476 videos|360 docs
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Summary
,shortcuts and tricks
,Previous Year Questions with Solutions
,Money & Credit Video Lecture | NCERT Video Summary: Class 6 to Class 12 (English) - UPSC
,Semester Notes
,Sample Paper
,Viva Questions
,Extra Questions
,Objective type Questions
,past year papers
,Money & Credit Video Lecture | NCERT Video Summary: Class 6 to Class 12 (English) - UPSC
,study material
,Free
,MCQs
,practice quizzes
,mock tests for examination
,Money & Credit Video Lecture | NCERT Video Summary: Class 6 to Class 12 (English) - UPSC
,Exam
,Important questions
,ppt
,video lectures
;
Study Money & Credit on the App
Students of UPSC can study Money & Credit alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Money & Credit,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Money & Credit is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup