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Read the given source and… (Social Science 2024 32/4/1 Q36)

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Social ScienceCBSE Class 10 · Board exam 2024, set 32/4/1 · 4 marks · Case-based

CBSE Class 10 Social Science 2024: question 36

Set in the CBSE Class 10 board exam of 2024, paper 32/4/1, section E, question 36, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q36 · 4 marks · Case-basedCompetency-basedMoney and Credit

Read the given source and answer the questions that follow:

Loans from Cooperatives

Besides banks, the other major source of cheap credit in rural areas are the cooperative societies (or cooperatives). Members of a cooperative pool their resources for cooperation in certain areas. There are several types of cooperatives possible such as farmers cooperatives, weavers cooperatives and industrial workers cooperatives, etc. Krishak Cooperative functions in a village not very far away from Sonpur. It has 2300 farmers as members. It accepts deposits from its members. With these deposits as collateral, the Cooperative has obtained a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place.

Krishak Cooperative provides loans for the purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses and for a variety of other expenses.

  1. (36.1)

    ‘Cooperative society’ is an example of which source of ‘credit’ ?

    1 mark
  2. (36.2)

    Explain the contribution of Cooperative Societies in rural development.

    1 mark
  3. (36.3)

    Mention any two sources of capital for Self-Help Groups. (2×1=2)

    2 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2024 board paper, set 32/4/1.

Hints

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

Hint 1

Is a cooperative registered and regulated, like a bank, or like a moneylender?

Hint 2

Look at the list of loans the Krishak Cooperative gives.

Hint 3

Think about how a Self-Help Group raises money to lend to its members.

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. (36.1) A cooperative society is an example of a formal source of credit.

    1 mark

  2. (36.2) Cooperatives give cheap credit to rural people for agricultural implements, cultivation, trade, fishing and house construction, which supports rural development.

    1 mark

  3. (36.3) (i) The members' own savings and contributions.

    1 mark

  4. (ii) Loans taken from banks (interest earned on loans given to members is also accepted).

    1 mark

Answer: (36.1) Formal source; (36.2) provides cheap loans for farming, trade, fishery and housing; (36.3) members' contributions and bank loans.

Where the marks are

  • Formal source of credit (1 mark)
  • Contribution to rural development (1 mark)
  • First source of capital for SHGs (1 mark)
  • Second source of capital for SHGs (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 32/4/1: 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.