Kar board 9th social science 31th chapter

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               CHAPTER –31

        MONEY AND CREDIT

I. Fill in the blanks with suitable words.

1. Indian rupee is derived from the Sanskrit word Rupya.

2. Cheque is an instrument of Bank Money.

3. The banks which deal with foreign currency are called Exchange Banks.

4. The Reserve Bank of India was established in the year 1935.

5. The money of Japan is Yen.

6. The Government of India nationalized 12 commercial Banks in 1949.

II. Answer the following questions.

7. What is the Barter exchange system?

Answer :- A system in which goods are exchanged directly for other goods without the use of money as a medium is called the barter system.

8. State the meaning of money.

Answer :- According to Robertson, “Money is anything which is widely accepted in payment for goods or in discharge of other business obligations.”

9. Which is the central bank of India?

Answer :- The Reserve Bank of India (RBI) is the central bank of India.

10. Explain the functions of money.

  • Primary Functions:
    • Medium of exchange: Used as a means of payment for goods and services.
    • Measure of Value: Provides a common unit to express the price/worth of goods.
  • Secondary Functions:
    • Standard of deferred payments: Facilitates payments to be made in the future.
    • Store of value: Allows purchasing power to be saved for future use.
    • Transfer of value: Enables the movement of purchasing power from one person or place to another.
  • Contingent Functions:
    • Basis of Credit: Acts as the foundation for the entire credit system.
    • Increase productivity of capital: Makes capital mobile and productive.

11. Mention the different types of banks.

  • Industrial Banks
  • Exchange Banks
  • Savings Banks
  • Co-Operative Banks
  • Land Mortgage Banks

12. Explain the functions of the RBI.

  • Monopoly of Note Issue: Sole authority to issue currency notes (except one-rupee notes).
  • Acts as Banker to Government: Manages the government's financial transactions.
  • Banker’s Bank: Maintains the cash reserves of commercial banks and lends them funds.
  • Acts as National Clearing House: Facilitates the settlement of inter-bank transactions.
  • Controller of Credit: Regulates the money supply and credit in the economy.
  • Custodian of Foreign Exchange Reserves: Manages the nation's foreign currency reserves.
  • Publishes Economic Statistics: Collects and publishes data on the economy.
  • Promotion of Banking Habits: Works to expand and strengthen the banking system in the country.
  • Facilities for Agriculture: Provides financial support for agricultural development.

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