🔥 Class 10 Economics – Chapter 3: Money and Credit
🎯 Best Notes for 2025 CBSE Board (With Hindi Explanation + Important Questions)

📘 1. What is Money?

Money is anything that is accepted as a medium of exchange.
👉 Hindi Explanation: Paise ka arth hai — koi bhi vastu jo len-den mein sabhi logon dwara maana jaaye.

📘 2. Functions of Money

• Medium of Exchange: Used to buy and sell goods.
  
  

• Measure of Value: Tells the price of goods.
  
  

• Store of Value: Saved for future.
  👉 Hindi:
  
  

• Saaman lene-bechne ke kaam aata hai.
  
  

• Saaman ki keemat batata hai.
  
  

• Bhavishya ke liye bacha sakte hain.
  
  

📘 3. Barter System

Exchange of goods for goods without money.
👉 Hindi: Jab bina paise ke cheezen badli jaati thi – jaise chawal ke badle doodh.
❌ Problem: Double coincidence of wants.

📘 4. Modern Forms of Money

🔹 (i) Currency

• Paper notes and coins.
  
  

• Issued by RBI (Reserve Bank of India).
  👉 Hindi: Kaanuni paisa — note aur sikke — jo RBI ke dwara chhapta hai.
  
  

🔹 (ii) Deposits with Banks

• People keep money in banks for safety.
  
  

• Banks provide ATM cards, cheques, etc.
  👉 Hindi: Bank mein rakha paisa — jisse cheque ya ATM ke zariye use kiya ja sakta hai.
  
  

📘 5. Credit (Loan)

Credit means borrowing money and repaying it later.
👉 Hindi: Jab hum kisi se paisa udhaar lete hain aur baad mein wapas karte hain.

📘 6. Types of Credit

🔹 (i) Formal Credit

• From banks and cooperatives
  
  

• Has proper rules, written agreement, and low interest
  👉 Hindi: Bank ya cooperative society se milne wala loan — sasta aur surakshit.
  
  

🔹 (ii) Informal Credit

• From moneylenders, friends, relatives
  
  

• High interest, no legal protection
  👉 Hindi: Sahukar ya jaan pehchaan se liya loan — mehenga padta hai aur suraksha nahi hoti.
  
  

📘 7. Self Help Groups (SHGs)

• Group of 15-20 poor people
  
  

• Collect savings and give small loans
  
  

• Helpful especially for women
  👉 Hindi: Gareeb logon ka apna group — paise jodte hain, chhota loan dete hain, mahilaon ke liye kaafi faayde ka.
  
  

📌 Important Questions for Practice — With Answers

✅ 1 Mark Questions

1. What is double coincidence of wants?
   👉 Both people need what the other offers for exchange.
   
   

2. Who issues currency notes in India?
   👉 Reserve Bank of India (RBI)
   
   

✅ 2 Mark Questions

1. What are the advantages of money over barter?
   👉
   (i) No need for double coincidence of wants
   (ii) Easy to store and carry
   
   

2. What is the basic idea of SHGs?
   👉 A small group of poor people helping each other through savings and small loans.
   
   

✅ 3 Mark Questions

1. Distinguish between formal and informal sources of credit.
   | Formal Credit | Informal Credit | |------------------|---------------------| | Given by banks | Given by moneylenders | | Legal and safe | Risky and expensive | | Low interest rate | High interest rate |
   
   

2. How do SHGs help rural poor, especially women?
   👉
   
   

• Give small loans without collateral
  
  

• Increase confidence and decision-making
  
  

• Encourage saving habits
  
  

✅ 5 Mark Questions

1. Explain how credit can be both good and bad.
   👉
   
   

• Good: If used in business and repaid on time (e.g., Salim the shoe manufacturer)
  
  

• Bad: If income is less than repayment (e.g., Swapna the farmer), leads to debt trap
  
  

2. How do formal sources of credit help the economy?
   👉
   (i) Provide cheap loans
   (ii) Encourage productive investment
   (iii) Less chance of exploitation
   (iv) Support businesses
   (v) Help in economic growth