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Read the given source and… (Social Science 2024 32/5/1 Q36)

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Social ScienceCBSE Class 10 · Board exam 2024, set 32/5/1 · 4 marks · Case-based

CBSE Class 10 Social Science 2024: question 36

Set in the CBSE Class 10 board exam of 2024, paper 32/5/1, 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, 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)

    How do 'Krishak Cooperatives' secure funds for providing loans to their members?

    1 mark
  2. (36.2)

    What are the different types of loans that 'Krishak Cooperatives' offer to their members?

    1 mark
  3. (36.3)

    Why are such cooperatives desirable in the rural areas?

    2 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2024 board paper, set 32/5/1.

Hints

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

Hint 1

Look at what the cooperative does with its members' deposits.

Hint 2

The last paragraph lists the loan purposes.

Hint 3

Compare the cost of cooperative credit with moneylenders' credit.

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) It accepts deposits from its 2300 farmer members and uses these deposits as collateral to obtain a large loan from the bank, which it then lends to members.

    1 mark

  2. (36.2) It gives loans for buying agricultural implements, for cultivation and agricultural trade, for fishery, for house construction, and for various other expenses.

    1 mark

  3. (36.3) They provide cheap credit in rural areas, and once loans are repaid, another round of lending takes place.

    1 mark

  4. (36.3) They reduce farmers' dependence on informal sources such as moneylenders, which lowers the risk of a debt trap.

    1 mark

Answer: (36.1) Members' deposits used as collateral for a bank loan; (36.2) Loans for implements, cultivation and trade, fishery, housing and other needs; (36.3) Cheap credit, repeated lending, less dependence on moneylenders.

Where the marks are

  • Deposits of members used as collateral for a bank loan (1 mark)
  • Types of loans listed (1 mark)
  • Cheap credit and continued lending (1 mark)
  • Reduced dependence on informal sources (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 32/5/1: 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.