Money and Credit | Class 10 Social Science Notes
By ConceptScroll Team · Published on 17 July 2026 · 2 min read
Money and Credit – this guide gives you a concise, exam-ready overview of Money and Credit from Class 10 Social Science, written by ConceptScroll editors and reviewed against the latest NCERT textbook.
Variety of Credit Arrangements
Credit arrangements vary widely depending on the lender, borrower, and local conditions. In the village of Sonpur, different people obtain credit from various sources with differing terms. Small farmer Shyamal borrows from a moneylender at 5% per month interest and from an agricultural trader at 3% per month. The trader also requires farmers to sell crops to him at low prices, ensuring repayment and profit. Medium farmer Arun obtains a bank loan at 8.5% per annum with flexible repayment and uses cold storage receipts as collateral for fresh loans. Agricultural labourer Rama depends on her employer for credit at 5% per month interest, repaying by labour and often trapped in debt. Besides these, cooperatives like Krishak Cooperative provide loans to members for various purposes at reasonable rates. These examples show the diversity of credit sources, terms, and impacts on borrowers depending on their status and resources.
📊 Diagram: Images of Sonpur village farmers and labourers with descriptions of their credit sources and terms.
🧪 Activity: Students list credit sources and uses in Sonpur, compare terms for different borrowers, and discuss credit accessibility.
🔗 Connection: This section leads to understanding formal sector credit in India and its supervision.
Frequently asked questions
Which of the following waste is non – biodegradable:
Tin cans
UNEP has asked all countries to stop the production of CFC ( Chloro Fluoro Carbon) this protocol is called
KYOTO
1. In situations with high risks, credit might create further problems for the borrower. Explain.
In situations with high risks, credit can create further problems for the borrower because if the borrower's income is uncertain or unstable, they may not be able to repay the loan on time. This can lead to a cycle of debt where the borrower has to take more loans to repay the earlier ones, increasing their financial burden. High risks may arise from factors such as crop failure, illness, or loss of employment, which reduce the borrower's ability to repay. Thus, credit under risky conditions can
2. How does money solve the problem of double coincidence of wants? Explain with an example of your own.
Money solves the problem of double coincidence of wants by acting as a medium of exchange. In a barter system, for a trade to happen, both parties must want what the other has (double coincidence of wants). Money eliminates this problem because it is universally accepted in exchange for goods and services. For example, if a farmer has rice and wants shoes, instead of finding a shoemaker who wants rice, the farmer can sell rice for money and then use that money to buy shoes from any shoemaker.
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