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Money by provid… (Class 10 Social Science SQP 2024-25, Q33B)

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Social ScienceCBSE Class 10 · Sample paper, session 2024-25 · 5 marks · Long answer

CBSE Class 10 Social Science sample paper 2024-25: question 33(B)

From the official CBSE sample question paper for 2024-25, section D, question 33(B), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q33(B) · 5 marks · Long answerMoney and Credit

Money by providing the crucial intermediate step eliminates the need for double coincidence of wants. Justify the statement highlighting the significance of the modern form of money in India.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2024-25.

Hints

Open one hint at a time and try again before the next.

Hint 1

Think of how barter works and what both traders must want.

Hint 2

What does money let a seller do before buying something else?

Hint 3

Why do people accept paper notes that have no use of their own?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. In a barter system, goods are exchanged directly, so a double coincidence of wants is essential. This means each party must want exactly what the other has to offer.

    1 mark

  2. Money acts as the intermediate step. A person sells goods for money and then buys what they need with it. This removes the need for a double coincidence of wants.

    1 mark

  3. Since money serves as the intermediary in exchange, it is called a medium of exchange. It makes trade easier.

    1 mark

  4. Modern money is currency, meaning paper notes and coins. Unlike grain, cattle or precious metals used earlier, it has no use of its own.

    1 mark

  5. It is accepted because the government authorises it. The RBI issues notes on behalf of the central government, no one else may issue currency, and the law says the rupee cannot be refused in settling payments in India.

    1 mark

Answer: Money removes the double coincidence of wants by acting as a medium of exchange. Modern currency in India is accepted because the government authorises it and the RBI issues it.

Where the marks are

  • Explains the double coincidence of wants in barter (1 mark)
  • Money as an intermediate step removes this need (1 mark)
  • Money as a medium of exchange (1 mark)
  • Modern currency has no use of its own (1 mark)
  • Government and RBI authorisation, and legal acceptance of the rupee (1 mark)

Revise the chapter

  • Chapter: Money and Credit (notes, formulas, where marks are lost and every past question)
Practise this chapterBoard-style questions from Money and Credit, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2024-25: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.