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Examine the significanc… (Class 10 Social Science 2024, Q28)

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Social ScienceCBSE Class 10 · Board exam 2024, set 32/2/1 · 3 marks · Short answer

CBSE Class 10 Social Science 2024: question 28

Set in the CBSE Class 10 board exam of 2024, paper 32/2/1, section C, question 28, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q28 · 3 marks · Short answerMoney and Credit

Examine the significance of credit in economic development of the country.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2024 board paper, set 32/2/1.

Hints

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

Hint 1

Define credit first.

Hint 2

Why do producers need money before they earn from sales?

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. Credit is an agreement in which the lender supplies money, goods or services against a promise of future payment. It is part of many day-to-day transactions.

    1 mark

  2. Credit supplies working capital for production, meeting ongoing expenses so that production is completed on time and earnings rise.

    1 mark

  3. For example, farmers take crop loans for seeds, fertilisers, pesticides and water at the start of the season and repay after harvest. This supports growth in income and employment.

    1 mark

Answer: Credit supplies working capital, so production is completed on time, raising income and growth.

Where the marks are

  • Meaning of credit (1 mark)
  • Meets production expenses and raises earnings (1 mark)
  • Example of farm crop loan (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 paper2024 board paper, set 32/2/1: 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.