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

 Page 2


MONEY AS A MEDIUM OF EXCHANGE
Transactions involving money are ubiquitous in our daily lives:
Purchasing groceries at a supermarket. 1.
Paying for public transportation fare. 2.
Ordering food at a restaurant or café. 3.
Paying bills for utilities such as electricity, water, or internet. 4.
Buying tickets for movies, concerts, or events. 5.
Money serves as a medium of exchange, allowing individuals to easily trade
goods and services without the need for a double coincidence of wants. For
example, a shoe manufacturer can sell shoes for money and then use that
money to buy wheat, simplifying the exchange process and making
transactions more efficient.
Page 3


MONEY AS A MEDIUM OF EXCHANGE
Transactions involving money are ubiquitous in our daily lives:
Purchasing groceries at a supermarket. 1.
Paying for public transportation fare. 2.
Ordering food at a restaurant or café. 3.
Paying bills for utilities such as electricity, water, or internet. 4.
Buying tickets for movies, concerts, or events. 5.
Money serves as a medium of exchange, allowing individuals to easily trade
goods and services without the need for a double coincidence of wants. For
example, a shoe manufacturer can sell shoes for money and then use that
money to buy wheat, simplifying the exchange process and making
transactions more efficient.
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
Transactions involving money are ubiquitous in our daily lives:
Purchasing groceries at a supermarket. 1.
Paying for public transportation fare. 2.
Ordering food at a restaurant or café. 3.
Paying bills for utilities such as electricity, water, or internet. 4.
Buying tickets for movies, concerts, or events. 5.
Money serves as a medium of exchange, allowing individuals to easily trade
goods and services without the need for a double coincidence of wants. For
example, a shoe manufacturer can sell shoes for money and then use that
money to buy wheat, simplifying the exchange process and making
transactions more efficient.
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
Transactions involving money are ubiquitous in our daily lives:
Purchasing groceries at a supermarket. 1.
Paying for public transportation fare. 2.
Ordering food at a restaurant or café. 3.
Paying bills for utilities such as electricity, water, or internet. 4.
Buying tickets for movies, concerts, or events. 5.
Money serves as a medium of exchange, allowing individuals to easily trade
goods and services without the need for a double coincidence of wants. For
example, a shoe manufacturer can sell shoes for money and then use that
money to buy wheat, simplifying the exchange process and making
transactions more efficient.
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 utilize deposits by keeping a small portion as cash reserves and extending loans
with the majority of funds:
Banks typically reserve around 15% of deposits as cash to meet withdrawal
demands.
1.
The remaining deposits are used to provide loans to individuals and businesses. 2.
Loans cater to various economic activities, fulfilling the financial needs of
borrowers.
3.
Banks act as intermediaries, connecting depositors with surplus funds to borrowers
in need.
4.
They charge higher interest rates on loans compared to the interest they offer on
deposits.
5.
The interest rate differential between loans and deposits forms the primary source
of income for banks.
6.