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NCERT Solutions for Class 10 Social Science Economics Chapter 5 Consumer Rights

These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Economics Chapter 5 Consumer Rights.

TEXTBOOK EXERCISES

Question 1.
Why are rules and regulations required in the marketplace ? Illustrate with a few examples.
Answer:
Rules and regulations are required in the marketplace to protect consumers. Sellers often abdicate responsibility for a low-quality product, cheat in weighing out goods, add extra charges over the retail price, and sell adulterated/ defective goods. Hence, rules and regulations are needed to protect the scattered buyers from powerful and fewer producers who monopolize markets. For example, a grocery shop owner might sell expired products and then blame the customer for not checking the date of expiry before buying the items.

Question 2.
What factors gave birth to the consumer movement in India ? Trace its evolution.
Answer:
(1) The following factors gave birth to the consumer movement in India :

1. There was the dissatisfaction of the consumers as many sellers indulged in various unfair practices such as less weight and measurement, more prices, and defective goods.
2. There was no legal system or law available to consumers to protect themselves from unethical and unfair trade practices and exploitation by the sellers.
3. In case of any defective product or deficiency of services, it was considered to be the responsibility of the consumer to be careful while buying a commodity or service.

(2) Evolution :

1. It took many years for organisations in India and around the world, to create awareness amongst people. This has also shifted the responsibility of ensuring quality of goods and services on the sellers.
2. In India, the consumer movement as a ‘social force’ originated with the necessity of protecting and promoting the interests of consumers against unethical and unfair trade practices.
3. Rampant food shortages, hoarding, black-marketing, adulteration of food and edible oil were also responsible for the rise of consumer movement in an organised form in the 1960s.
4. Till 1970s, consumer organisations wrote articles and held exhibitions.
5. Consumer groups were formed to look into the malpractices in ration shops and over­crowding in the road passenger transport.
6. In 1986, the Government of India enacted Consumer Protection Act 1986, popularly known as COPRA to protect the interests of the consumers.

Question 3.
Explain the need for consumer consciousness by giving two examples.
Answer:
There is a need for consumer consciousness so that the buyers themselves can take action against cheating traders. The ISI and Agmark logos are certifications of good quality. Consumers must look for such certifications while buying goods and services. Secondly, to be able to discriminate and make informed choices, a consumer needs to have adequate knowledge of the goods or services purchased by him/her.

Question 4.
Mention a few factors which cause exploitation of consumers.
Answer:
A few factors which cause exploitation of consumers are as mentioned below :

1. Individual consumers often find themselves in a weak position whenever there is a complaint regarding a good or service that had been bought, the seller tries to shift all the responsibility on to the buyers.
2. Consumers purchase in small amounts and are scattered. They do not bother about products of small value even if they are cheated.
3. Consumers do not take receipt for products of small value. Sometimes the shopkeepers too don’t give receipt for products of small value due to rush of customers as they don’t find time to issue receipts to each and every customer.
4. Limited supplies : Limited supplies ‘Of goods and services are made to exploit the consumers who are compelled to pay more than the actual price.
5. Limited competition : When one or a group of producers control the production of any product, they exploit the consumers by manipulating the prices. For example in the housing sector, where the producers and consumers are few, the sellers exploit the consumers.
6. Low literacy : Illiteracy too leads to exploitation of the consumers because they are unable to have complete knowledge about the products.
7. Life of the people is so busy that they do not find time for such matters. People have become habitual and exploitation by traders does not make any difference in their lives unless they suffer a substantial loss.

Question 5.
What is the rationale behind the enactment of Consumer Protection Act, 1986?
Answer:
The rationale behind the enactment of Consumer Protection Act of 1986 is to protect the consumer against unethical and unfair trade practices. Also, it recognises the consumer’s right to be informed, right to choose, right to seek redressal and right to represent himself/herself in consumer courts.

Question 6.
Describe some of your duties as consumers if you visit a shopping complex in your locality.
Answer:
Some of our duties as consumers are as given below :

1. While purchasing the goods, consumers should look at the quality of the products as well as on the guarantee of the products and services.
2. Consumers should ask for cash memo for the products purchased.
3. Exercise your right to choose a product of your liking without any conditions.
4. Wherever possible, consumers should insist for the warrantee card.
5. Consumers should preferably purchase products with ISI, Agmark etc.
6. Consumers should ask for expiry date about any eatables/biscuits etc. before buying the product.
7. Consumer should ask about the MRP of the product and should not pay more than MRP. On the other hand, it is his duty to ask the shopkeeper to reduce the rate.

Question 7.
Suppose you buy a bottle of honey and a biscuit packet. Which logo or mark will you have to look for and why?
Answer:
Agmark, because it is meant for agricultural products.

Question 8.
What legal measures were taken by the government to empower the consum­ers in India ?
Answer:
Legal measures taken by the government to empower consumers in India are plenty. First and foremost being the COPRA in 1986. Then, in October 2005, the Right to Information Act was passed, ensuring citizens all information about the functioning of government departments. Also, under COPRA, a consumer can appeal in state and national courts, even if his case has been dismissed at the district level. Thus, consumers even have the right to represent themselves in consumer courts now.

Question 9.
Mention some of the rights of consumers and write a few sentences on each.
Answer:
Consumer right is the right to have information about the quality, potency, quantity, purity, price, and standard of goods or services as it may be the case, but the consumer is to be protected against any unfair practices of the trade. It is therefore very essential for the consumers to know their rights which are given below:
(1) Right to safety:

1. According to this right the consumers have the right to be protected against the marketing of goods and services which are hazardous to life and property.
2. This right is important for safe and secure life.
3. This right includes concern for consumer’s long term interest as well as for their present requirement.
4. Sometimes the manufacturing defects in pressure cookers, gas cylinders and other electrical appliances may cause loss to life, health and property of customers.
5. Thus right to safety protects the consumers from sale of such hazardous goods or services.

(2) Right to information :

1. According to this right the consumer has the right to get information about the quality, quantity, purity, standard^– and price of goods or services as to protect himself against the abusive and unfair practices.
2. The producer must supply all the relevant information at a suitable place preferably on the product itself.
3. Since October 2005, the Right to Information Act ensures its citizens all the information about the functions of government departments.

(3) Right to choice :

1. A consumer has the right to choose the goods or services of his/her likings.
2. The right to choice means consumer’s access to variety of goods and services at a competitive price.
3. A consumer cannot be forced to buy things he may not wish to and is left with no choice.

(4) Right to be heard or right to representation :

1. In case a consumer has been exploited or has any complaint against the product or service then he has the right to be heard and be assured that his/her interest would receive due consideration.
2. This right includes the right to representation in the government and in other policy making’
   
3. Under this right the companies must have complaint cells to attend the complaints of customers.

(5) Right to seek redressal :

1. A consumer has the right to get compensation or seek redressal against unfair trade practices or any other exploitation.
2. This right assures justice to consumers against exploitation.
3. The right includes compensation in the form of money or replacement of goods or repair of a defect in the goods as per the satisfaction of consumer.
4. Various redressal forum e., three-tier quasi-judicial bodies under the Consumer Protection Act 1986 has been set at district, state and national level.

(6) Right to consumer education :

1. It is right of the consumer to adquire the knowledge and skills to be informed so that even the illiterate consumer may seek information about the existing acts, and agencies.
2. The government of India has included consumer education in the school curriculum and in various university courses.
3. Government is also making use of media to make the consumers aware of their rights and make wise use of their money.

Question 10.
By what means can the consumers express their solidarity?
Answer:
Consumers can express their solidarity by forming consumer groups that write articles or hold exhibitions against traders’ exploitation. These groups guide individuals on how to approach a consumer court, and they even fight cases for consumers. Such groups receive financial aid from the government to create public awareness. Participation of one and all will further strengthen consumer solidarity.

Question 11..
Critically examine the progress of consumer movement in India.
Answer:

1. It was on 24 December 1986 that the Indian Parliament enacted the Consumer Protection Act. This day i.e., 24th December is celebrated as National Consumers’ Day in the country.
2. The consumer movement has made progress in terms of numbers of organised groups and activities. There are more than 700 consumer groups in the country. Out of these groups 20­25 are well organised and recognised for their work.
3. However, the progress of the consumer movement in India has been slow. Even after twenty seven years of the enactment of COPRA in 1986, consumers are being exploited by the shopkeepers or traders. Defective or substandard home appliances are sold in the market. Duplicate articles are also being sold. There is adulteration and impurity in edible items. Incomplete information is found printed on various products. LPG gas cylinders with less weight are supplied to the housewives.
   But the main reason for this state of affairs is that the consumers have not realised their role and importance. Most of the people do not make a complaint to redress their grievances. To make consumer movement effective, it is necessary that every complaint, even for a small amount of money, should be made. People should actively get involved in the movement to protect their interests.

Question 12.

Match the following :

Answer:
(i) (e), (ii) (c), (iii) (a), (iv) (b), (v) (f), (vi) (d).

Question 13.
Say True or False :

1. COPRA applies only to goods.
   False
2. India is one of the many countries in the world which has exclusive courts for consumer redressal.
   True    
3. When a consumer feels that he has been exploited, he must file a case in the District Consumer Court.
   True,
4. It is worthwhile to move to consumer courts only if the damages incurred are of high value.
   False
5. Hallmark is the certification maintained for the standardization of jewellery.
   True
6. The consumer redressal process is very simple and quick.
   True
7. A consumer has the right to get compensation depending on the degree of the damage.
   True

We hope the NCERT Solutions for Class 10 Social Science Economics Chapter 5 Consumer Rights help you. If you have any query regarding NCERT Solutions for Class 10 Social Science Economics Chapter 5 Consumer Rights, drop a comment below and we will get back to you at the earliest.

NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy

These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy.

TEXTBOOK EXERCISES

Question 1.
What do you understand by globalization? Explain in your own words.
Answer:
Globalisation in today’s world has come to imply many things. It is the process by which the people of the world are unified into a single society and function together. This term is also often used to refer to economic globalization: the integration of national economies into the international economy through trade, foreign direct investments, capital flows, migration and the spread of technology.

Question 2.
What were the reasons for putting barriers to foreign trade and foreign investment by the Indian government? Why did it wish to remove these barriers?
Answer:
Barriers to foreign trade and foreign investment were put by the Indian government to protect domestic producers from foreign competition, especially when industries had just begun to come up in the 1950s and 1960s. At this time, competition from imports would have been a death blow to growing industries. Hence, India allowed imports of only essential goods.

Later, in the 1990s, the government wished to remove these barriers because it felt that domestic producers were ready to compete with foreign industries. It felt that foreign competition would in fact improve the quality of goods produced by Indian industries. This decision was also supported by powerful international organisations.

Question 3.
How would flexibility in labour laws help companies?
Answer:
Flexibility in labour laws would help companies in the ways mentioned below :

• It will help companies in being competitive and progressive.
• Flexibility in labour laws can help the companies to decrease their production cost by employing labourers only for short period of time when there is need instead of employing them for long period of time or yearly basis.
• By easing up on labour laws, company heads (managers) can negotiate wages and terminate employment, depending on market conditions. This will increase the competitiveness of the companies.
• The companies can ask the workers to work overtime when there is more pressure to complete the work.

Question 4.
What are the various ways in which MNCs set up or control the production in other countries?
Answer:
The various ways in which MNCs set up, or control, production in other countries are by buying out domestic companies or making the latter work for them. Sometimes, MNCs buy mass produce of domestic industries, and then sell it under their own brand name, at much higher rates, in foreign countries. MNCs look towards developing nations to set up trade because in such places, the labour and manufacturing costs are much lower.

Question 5.
Why do developed countries want developing countries to liberalise their trade and investment ? What do you think should the developing countries demand in return ?
Answer:
(1)

• World Trade Organisation which was started at the initiative of the developed countries says that all barriers of foreign trade and investment are harmful. It is supposed to allow free trade for all.
• In practice it is seen that the developed countries have unfairly retained trade barriers.
• On the other hand, WTO rules have forced the developing countries to remove trade barriers.
• Developed countries produce goods at a very low cost. The surplus goods are sold in
  other countries at a fairly higher price. This way they earn profits. So developed countries want
  developing countries to liberalise their trade and investment.

(2) The developed countries are biased against the developing countries. They have been

following wrong practices. The example is the debate on agriculture sector. In the USA, the share of agriculture in GDP is 1% and its share in total employment a tiny 0.5%. And this very small percentage of people who are engaged in agriculture in the US receive massive sums of money from the US government for production and for exports to other countries at low prices. This adversely affects farmers in these countries.

In view the above facts the developing countries should demand for fair trade practices to be followed by the developed countries under which they should stop giving subsidies to their agricultural sector. Trade barriers put unfairly should be removed. Only then there would be a free and fair trade in the world and the interest of the developing countries would be protected.

Question 6.
“The impact of globalisation has not been uniform.” Explain this statement.
Answer:
“The impact of globalisation has not been uniform”. The truth of this statement can be verified if we observe the impact of MNCs on domestic producers and the industrial working class. Small producers of goods such as batteries, capacitors, plastics, toys, tires, dairy products, and vegetable oil have been hit hard by competition from cheaper imports. Also, workers are now employed “flexibly” in the face of growing competition. This has reduced their job security. Efforts are now on to make globalisation “fair” for all since it has become a worldwide phenomenon.

Question 7.
How has the liberalization of trade and investment policies helped the globalization process?
Answer:
Liberalization has the following effects :

1. Goods can now be imported and exported easily.
2. Companies can set up factories and offices in other countries. For example, Ford Motors, an American company came to India in 1995 and set up a large plant near Chennai. This MNC not only produces cars for the Indian market, it also exports cars to other developing countries and exports car components for its many factories around the world.
3. Activities of many MNCs has increased foreign investment and foreign trade which has led to greater integration of production and markets across countries or globalisation process.

As a result of above, more and more countries are coming into closer contacts with each other due to MNCs. Therefore, liberalisation of trade and investment policies have helped in the globalisation process.

Question 8.
How does foreign trade lead to the integration of markets across countries ? Explain with an example other than those given here.
Answer:
Foreign trade leads to integration of markets across countries by the processes of imports and exports. Producers can make available their goods in markets beyond domestic ones via exports. Likewise, buyers have more choice on account of imports from other countries. This is how markets are integrated through foreign trade. For example, Japanese electronic items are imported to India, and have proved to be a tough competition for less-technologically-advanced companies here.

Question 9.
Globalisation will continue in the future. Can you imagine what the world would be like twenty years from now ? Give reasons for your answer.
Answer:
(a) Globalisation is a step towards the integration between countries through foreign trade and foreign investments by multinational corporations. Integration of production and integration of markets are the main objectives of globalisation. Rapid improvement in technol­ogy, liberalisation of trade and investment policies and the role of WTO has facilitated the process of globalisation.

(b) But in practice the globalisation has not benefited all the people. Moreover many rules of the WTO are biased against the developing countries. They are designed to force them to open their economies in the interest of the developed countries. For example, in the USA, the government gives massive sums of money to farmers whose share in total employment is only 0.5%, for production and for exports to other countries at abnormally low prices. Thus surplus farm products are sold in other country markets adversely affecting farmers in those countries. It is not a fair trade practice.

If such policies continue then the position of the developing countries may deteriorate. Many industries may not be able to compete and face closure. There will be less employment opportunities in the developing countries.

(c) However, efforts are being made to have a fair globalisation to ensure that its benefits are shared by all. Under these circumstances, the world after twenty years from now would bring people closer to each other. All the people would be benefited. The standard of living would improve and people would live a happier contented life than at present. But if the efforts for a fair globalisation fails then the condition of the developing countries of the world worsens because the regulations of the WTO will remain biased against the developing countries.

Question 10.
Supposing you find two people arguing: One is saying globalization has hurt our country’s development. The other is telling, globalisation is helping India de­velop. How would you respond to these arguments?
Answer:
Globalisation has hurt our country’s development because: firstly, it has led to the annihilation of small producers who face stiff competition from cheaper imports. Secondly, workers no longer have job security and are employed “flexibly”.
Globalisation is helping India develop on account of the following reasons: firstly, the competition it entails has led to rise in the quality of products in the market. Secondly, it has made available a wider variety of goods in the market, for the buyer to choose from. Now, imported goods are easily available alongside domestic products.

Question 11.
Fill in the blanks :

Indian buyers have a greater choice of goods than they did two decades back. This is closely associated with the process of (1)____________ . Markets in India are selling goods produced in many other countries. This means there is increasing (2)__________ with other countries. Moreover, the rising number of brands that we see in the markets might be produced by MNCs in India. MNCs are investing in India because
(3) ______ . While consumers have more choices in the market, the effect of rising (4)______ and (5)_________ has meant greater (6)___________ among the produc­tion
Answer:

1. globalisation
2. cooperation foreign
3. it has been beneficial for them
4. investment
5. foreign trade
6. competition

Match the following :

Question 12.

Answer:
(i)  (b) Garments, footwear, sports items
(ii)  (e) Trade barriers
(iii) (d)Tata Motors, Infosys, Ranbaxy
(iv) (c) Call centres
(v) (a) Automobiles.

Question 13.
Choose the most appropriate option :
(1) The past two decades of globalisation has seen rapid movements in
(a) goods, services, and people between countries.
(b) goods, services, and investments between countries.
(c) goods, investments, and people between countries.

(2) The most common route for investments by MNCs in countries around the world is to
(a) set up new factories.
(b) buy existing local companies.
(c) form partnerships with local companies.

(3) Globalisation has led to an improvement in living conditions
(a) of all the people.
(b) of people in developed countries.
(c) of workers in developing countries.
(d) none of the above.
Answer:

1. (b) goods, services and investments between countries.
2. (b) buy existing local companies.
3. (d) none of the above.

We hope the NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy help you. If you have any query regarding NCERT Solutions for Class 10 Social Science Economics Chapter 4 Globalisation and the Indian Economy, drop a comment below and we will get back to you at the earliest.

NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit

These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit.

TEXTBOOK EXERCISES

Question 1.
In situations with high risks, credit might create further problems for the borrower. Explain
Answer:
Whether a credit would be useful or not, will depend on a number of factors like – risks involved, whether there is some support against a loss, terms of credit, etc. It is a fact that in situations with high risks, credit might create further problems for the borrower. For example, credit taken by farmers for cultivation might create problems for the farmer at some times. Crop production involves high costs on inputs such as HYV seeds, fertilizers, pesticides, irrigation etc.

Farmers generally take loans at the beginning of the season and repay the loan after harvest. But the failure of the crop makes loan repayment impossible. Then in order to repay the loan sometimes, they become bound to sell part of their land. So, their situations become worse than before. The incidences of farmers’ suicides especially in Maharashtra are the burning examples of this situation. Thus, whether credit would be useful or not, depends on the various risks involved in the situation.

Question 2.
How does money solve the problem of double coincidence of wants ? Explain with an example of your
own. [CBSE 2016]
Answer:

1. Money solves the problem of double coincidence of wants because it acts as an intermediate in the exchange process.
2. People may purchase anything with money.
3. There is no need to have any goods or commodities for exchange.
4. Money acts as a medium of exchange.

For example, a person working as an engineer in a government department gets salary from his office. With that money (salary) he purchases different goods from the market according to the requirements of his family. He makes payment in cash and does not need any product for exchange as required under the double coincidence of wants. Thus, money acts as an intermediate in the exchange process.

Question 3.
How do banks mediate between those who have surplus money and those who need money?
Or
What does the Bank do with the deposits which they accept from the public ?
Answer:
We know that banks accept deposits from the people who have surplus money and also pay interest on the deposits.
But banks keep only a small portion (15 percent in India) of their deposits as cash with themselves. This is kept as a provision to pay the depositors who might come to withdraw money from their accounts in the bank on any day. They use the major portion of the deposits to extend loans to those who need money. In this way, banks mediate between those who have surplus money and those who need money.

Question 4.
Look at a 10 rupee note. What is written on top ? Can you explain this statement ?
Answer:
The following words are written at the top of a 10 rupee note :
“Reserve Bank of India Guaranteed By The Central Government”
“I promise to pay the bearer the sum of Ten Rupees.” Governor.

1. It implies that the notes are issued by the Reserve Bank of India.
2. The Governor of the Reserve Bank promises to pay tjie bearer the sum of ten rupees.
3. The notes have been guaranteed by the Central Government and in case of failure of the currency e. Ten Rupee notes, people can claim tile amount from the Central Government.
4. It also implies that the use of rupee is a legal currency and no one can refuse payment made in it.
5. It is medium of exchange in India.

Question 5.
Why do we need to expand formal sources of credit in India ?
Answer:
We need to expand formal sources of credit in India for many reasons:

1. Compared to formal lenders, most of the informal lenders charge much higher interest rates on loans like 3% to 5% per month i.e. 36% a year.
2. Besides the high-interest rate, informal lenders impose various other tough conditions. For example, they make the farmers promise to sell the crop to him at a low price. There is no such condition in the formal sector.
3. Informal lenders do not treat well with the borrowers. On the other hand, there is no such situation in the formal sector.
4. The Reserve Bank of India supervises the functioning of formal sources of loans. In contrast, there no organization which supervises the credit activities of lenders in the informal sector.
5. Loans taken by poor people from informal lenders sometimes, lead them to debt-trap because of high-interest rates.
6. The formal sources of credit in India still meets only about half of the total credit needs of rural people.

So, it is necessary that the formal sources of credit expand their lending, especially in rural areas so that the dependence on informal sources of credit reduces as this will also help in the development of the country.

Question 6.
What is the basic idea behind the SHGs for the poor? Explain in your own words.
Answer:

1. The basic idea behind the SHGs (Self-Help Groups) is to organise rural poor, in particular women, so that they may pool their savings and help them to borrow money without collateral.
2. The banks are not present in every village. Even if there is a bank in rural area, getting a loan from a bank is much more difficult that taking a loan from informal sources because the bank loans require proper documents and collateral.
3. So to solye the problems of cheaper loans without collateral in rural areas SHGs have been formed.

Question 7.
What are the reasons why the banks might not be willing to lend to certain borrowers ?
Answer:
Bank loans require proper documents and collateral. People who do not apply for loan with proper documents and collateral are refused loans by the banks. Generally, the poor fall in this category and absence of collateral is one of the main reasons for not sanctioning loans to them.

Question 8.
In what ways, does the Reserve Bank of India supervise the functioning of banks ? Why is this
necessary ?                                                                            ,
Answer:
(1) The Reserve Bank of India supervises the functioning of banks in the following ways :

• The RBI monitors that the banks actually maintain the required cash balance.
• It sees that the banks give loans not-just to profit-making businesses and traders but also to small cultivators, small-scale industries, small-borrowers.
• The banks submit information to the RBI about loans sanctioned to different categories of persons along with terms and conditions of the loans. In this way, RBI sees that the loans are sanctioned to all including the poor.

(2) The supervision of the Reserve Bank of India over the functioning of the banks is necessary. It is to know how much the banks are lending, to whom and at what interest rate. It is to ensure that the banks do not exploit the borrowers like the moneylenders in the rural areas.

Question 9.
Analyse the role of credit for development.
Answer:
Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. This leads to increased production, employment, and profits. However, caution must be exercised in the case of high risks so that losses do not occur.

This advantage of loans also needs to be manipulated and kept under an administrative hold because loans from the informal sector include high-interest rates that may be more harmful than good. For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can ultimately contribute to national development.

Question 10.
Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
Answer:
Manav will decide to borrow from the bank or the moneylender on the following basis :

1. Rate of interest.
2. Terms for repayment of loan,
3. Other conditions such as collateral.
4. Wherever the above conditions favour him or are more satisfactory, he will take loan from
   them accordingly. Generally, in India, the terms and conditions that are offered in the formal sector i.e., the banks and cooperatives are better than the informal sector i.e., moneylenders who charge much higher rate of interest.

Question 11.
In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.
(a) Why might banks be unwilling to lend to small farmers ?
(b) What are the other sources from which the small farmers can borrow ?
(c) Explain with an example how the terms of credit can be unfavourable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
Answer:
(a) Banks might not be willing to lend to small farmers because they don’t have collateral security to deposit in the bank. Some of these farmers are not in the position of paying the loan, due to already existing loans.

(b) The other sources of borrowing are from moneylenders, employer, self-help group, landlord, etc.

(c) For example, if a person takes a loan from his/her landlord on the basis of security of his/her land. At the end, be/she is not able to pay the loan then the landlord can sell the land and get his money back.

(d) Small farmers can get cheap credit with the help of a self-help group (SHGs) from the bank and they can repay the loan easily after 3 or 4 years. The rate of interest is also low as compared to other sources of credit.

Question 12.
Fill in the blanks :

1. Majority of the credit needs of the_____________ households are met from informal sources.
2. ___________ costs of borrowing increase the debt-burden.
3. __________ issues currency notes on behalf of the Central Government.
4. Banks charge a higher interest rate on loans than what they offer on ___________
5. _______ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Answer:

1. poor
2. High
3. Reserve Bank of India
4. deposits
5. Land

Question 13.
Choose the most appropriate answer :
(1) In an SHG most of the decisions regarding savings and loan activities are taken by
(a) Bank
(b) Members
(c) Non-government organization
(d) Formal sources of credit does not include
Answer:
(1) (b) Members

We hope the NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit help you. If you have any query regarding NCERT Solutions for Class 10 Social Science Economics Chapter 3 Money and Credit, drop a comment below and we will get back to you at the earliest.

NCERT Solutions for Class 10 Social Science Economics Chapter 1 Development

These Solutions are part of NCERT Solutions for Class 10 Social Science. Here we have given NCERT Solutions for Class 10 Social Science Economics Chapter 1 Development.

TEXTBOOK EXERCISES

Question 1.
How is development of a country determined ?
Answer:
The development of a country can be generally determined by average income or per capital income.

Question 2.
Which neighbouring country of India has better performance in terms of human development than India?
Answer:
Sri Lanka.

Question 3.
Assume there are four families in a country. The average or per capita income of these families is 5,000. If the income of the three families is 4,000, 7,000, and 3,000 respectively, what is the income of the fourth family?
Answer:
Rs. 6,000.

Question 4.
What is the main criterion used by the World Bank in classifying different countries? What are the limitations of this criterion, if any?
Answer:
The average income, i.e. per capita income is the main criterion used by the World Bank in classifying different countries.
According to the World Development Report 2006, published by the World Bank, countries with per capita income of $10066 per annum and above in 2004 are called rich or developed countries. On the other hand, countries with per capita income of $825 or less are called low-income countries.

Limitations: It does not tell us about how the average income is distributed among the people in the individual countries. The countries with the same per capita income might be very different with regard to income distribution. One might have equitable distribution of income, while the other might have great disparities between the rich and the poor.

Question 5.
In what respects is the criterion used by the UNDP for measuring develop­ment different from the one used by the World Bank?
Answer:
The criterion used by the UNDP for measuring development is different from the one used by the World Bank in the following respects:
The World Bank – The World Bank uses per capita income as the sole criterion for measuring development.
The UNDP – It uses the Human Development Index (HDI) based on a combination of factors such as health, education, and income as the criterion for measuring development.
Thus, the UNDP does not rely solely on per capita income, as the criterion for measuring development, as in the case with the World Bank.

Question 6.
Why do we use averages? Are there any limitations to their use? Illustrate with your own examples related to development.
Answer:
We use averages because they are useful for comparing differing quantities of the same category. For example, to compute the per capita income of a country, averages have to be used because there are differences in the incomes of diverse people. However, there are limitations to the use of averages. Even though they are useful for comparison, they may also hide disparities. For example, the infant mortality rate of a country does not differentiate between the male and female infants born in that country. Such an average tells us nothing about whether the number of children dying before the age of one are mostly boys or girls.

Question 7.
Kerala, with lower per capital income has a better human development ranking than Punjab. Hence, per capital income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.
Answer:
No, I do not agree with the statement that per capita income is not a useful criterion at all. Kerala, with lower per capita income, has a better human development ranking than Punjab because, human development ranking is determined using a combination of factors such as health, education, and income. So, this does not imply that per capita income is not useful. Rather, per capita income is one of the development factors and can not be neglected. The World Bank uses per capita income as the criterion for measuring development and comparing states. But this criterion has certain limitations because of which determination of Human Development Index (HDI) is done using this criterion along with some other development factors like health, education etc.

Question 8.
Find out present sources of energy used by people in India. What could be possibilities fifty years from now?
Answer:
(1) The present sources of energy used by the people in India are as given below :

• Conventional sources: Coal, petroleum, natural gas, electricity.
• Non-conventional sources: Solar energy, wind energy and energy produced by using biogas, geothermal energy, tidal energy, and wave energy.

(2) Position of energy after 50 years in India: The position of energy in India after about 50 years will not be good due to the reasons mentioned below :

1.  The consumption of non-renewable resources at present is very high in comparison to production and reserves.
2. The reserves for the world as a whole would last for 43 years.
3. The countries like India depend on importing oil from abroad because they do not have enough stock of their own.
4. If price of oil increases, it becomes a burden on the country’s finances. India too has to spend a lot of foreign exchange for importing oil and petroleum and its products. It is putting a heavy strain on India’s economic development. However, India has many advantages due to its geographical features. Thus India could be in a better position to face the energy crisis, if any, as mentioned below :
   • There should be judicious utilization of the abundant renewable energy resources, such as biomass energy, solar energy, wind energy, and geothermal energy.
   • Apart from augmenting the energy supply renewable resources will help India in mitigating climate change.
   • Solar power has got the tremendous potential of energy which can be harnessed. Solar energy systems are available for industrial and domestic use with the added advantage of minimum maintenance. Solar energy could be made financially viable with government tax incentives and rebates.
   • Wind energy is one of the most efficient alternative energy sources. India now ranks as a “wind superpower” having a net potential of about 45000 MJV only from 13 identified states.
   • India has huge hydropower potential, out of which around 20% has been realized so far.
   • Biomass energy can play a major role in reducing India’s reliance on fossil fuels by making use of thermo-chemical conversion technologies.

Question 9.
Why is the issue of sustainability important for development?
Answer:
Sustainability for development or sustainable development refers to the development which is done without damaging the environment and other resources. In other words, balancing the need to use resources and also conserve them for future is known as sustainable development.

The issue of sustainability is important for development because development must happen in tandem with future. If natural resources are not sustained, it will cause stagnation of development after a point of time. Exploiting resources unethically will ultimately undo the development that a country may have achieved. This is because in the future, those resources will not be available for further progress.

Question 10.
“The Earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person.” How is this statement relevant to the discussion of development? Discuss.
Answer:
It is a fact that earth has enough resources to meet the needs of all but not enough to satisfy the greed of even one person because one person may exploit the natural resources recklessly. The reckless exploitation of resources may lead to their exhaustion and may damage the environment. In such a situation what will happen if no natural resources are available? It will hamper the development process in all the countries in the world because fossil fuels and minerals are essential for development. The reckless use of minerals may disturb the balance in nature. Thus, it is necessary to use resources judiciously for development and to adopt a strategy of economic development that is environment friendly.

Question 11.
List a few examples of environmental degradation that you may have observed around you.
Answer:
Environmental degradation manifests itself in different ways. Deforestation, falling levels of groundwater, soil erosion, water pollution, burning of fossil fuels, the hole in the ozone layer, and combustion from automobiles causing extreme air pollution especially in urban areas are some of the examples of environmental degradation.

Question 12.
For each of the items given in the following table, find out which country is at the top and which is at the bottom.
SOME DATA REGARDING INDIA AND ITS NEIGHBOURS FOR 2004

Answer:
For each of the items given in the above table, the country at the top and at the bottom is as given below :

Question 13.
The following table shows the proportion of undernourished adults in India. It is based on a survey of various states for the year 2001. Look at the table and answer the following questions :

1. Compare the nutritional level of people in Kerala and Madhya Pradesh.
2. Can you guess why around 40 percent of people in the country are under­nourished even though it is argued that there is enough food in the country? Describe in your own words.

Answer:

1. The undernourished adults in Kerala are males 22% and females 19% only whereas in Madhya Pradesh, it is 43% males and 42% females. It is, thus clear that the number of undernourished adults in Madhya Pradesh is higher than Kerala.
2. Around 40 percent of people in the country are undernourished even though it is argued that there is enough food in the country due to reasons as mentioned below :
   • The Public Distribution System has failed in its objects.
   • The average consumption of PDS grain at the All India level is only 1 kg per month per person.
   • The average consumption is as low as less than 300 gm per person per month in the states of Bihar, Orissa, and Uttar Pradesh.
   • Sometimes PDS dealers are found resorting to malpractices like diverting the grain to open market to get better margin, selling poor quality grains at ration shops. People generally do not buy such low-quality grains.
   • When ration shops are unable to sell, massive stock of foodgrains piles up with the FCI. Such stock gets rotten or eaten by rats. This leads to a shortage of foodgrains and to a situation as described above that there is enough food in the country but around 40 percent of people are undernourished.

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