Money And Credit | Revision Notes | Chapter 3 | CBSE | Economics | Class 10
- Why Transaction are made in Money ? Because a person holding money can comfortably exchange it for any good or service that he might want.
- Double Coincidence of Wants : It means a person wants to sell is exactly the other wishes to buy.
- Barter System : Barter system is that system where goods are directly exchanged without the use of money.
- Medium of exchange : When money acts as an intermediate in the exchange process, it is called as medium of exchange.
- Money : Money is something that can act as a medium of exchange in transactions.
- Currency : It is a modern form of money like paper notes and coins.
- Reserve Bank of India : It is a Central Bank of India which issues currency notes on behalf of the central government.
- Demand deposits : Demand deposit is that deposit in the bank accounts which can be withdrawn on demand any time.
- Cheque : A cheque is a paper instructing the bank to pay a specific amount from the person's account to the person in whose name the cheque has been made.
- Loan : It refers to an agreement in which the lender supplies the borrower with money, good or services in return for the promise of future payment.
- Debt-trap : It is a situation when loan repayment is impossible.
- Collateral : It is an asset that the borrower owns and uses this as a guarantee to a lender until the loan is repaid.
- Terms of credit : The terms of credit very substantially from one credit arrangement to another.
- Formal sector loans : Formal sector loans included loans from banks and co-operatives.
- Informal sector loans : Informal sector loans included loans from money lenders, traders, employees, relatives and friends etc.
- Higher interest on loans : It means a larger part of the earnings of the borrowers is used to repay the loan.
- Self-help Group : It is a group of 15-20 members who can take small loans from the group itself to meet their needs.
- Recipient of 2006 Nobel Prize for Peace : The founder of Grameen Bank Professor Muhammad Yunus is the recipient of 2006 Nobel Prize for Peace.
