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'Expanding… (Class 10 Social Science SQP 2025-26, Q36)

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Social ScienceCBSE Class 10 · Sample paper, session 2025-26 · 3 marks · Short answer

CBSE Class 10 Social Science sample paper 2025-26: question 36

From the official CBSE sample question paper for 2025-26, section D, question 36, for 3 marks. Try it first; the hints and our step-by-step solution are below.

Q36 · 3 marks · Short answerMoney and Credit

'Expanding access to loans in the formal sector is important, yet it is equally critical that these loans are accessible to all people for national development.' Justify the statement.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

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

Hint 1

Compare the cost of informal and formal loans.

Hint 2

Think of what happens to a borrower who cannot repay.

Hint 3

Link cheap credit to farming, business and small industries.

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. Informal loans carry high interest, so a large part of the borrower's income goes to repayment and little is left for the household. Sometimes the repayment exceeds income, leading to a debt trap, as with Rama in Sonpur.

    1 mark

  2. High cost of borrowing also discourages people from starting enterprises. Banks and cooperatives must therefore lend more, and to all sections including the poor.

    1 mark

  3. Cheap, affordable formal credit lets people grow crops, do business and set up small industries. This raises incomes, employment and production, and is crucial for national development.

    1 mark

Answer: Affordable formal credit for all frees borrowers from debt traps and high interest, raises incomes and enterprise, and so supports national development.

Where the marks are

  • High informal interest reduces income and causes debt trap (1 mark)
  • High cost deters enterprise, so formal lending is needed (1 mark)
  • Cheap credit for all raises income and development (1 mark)

Revise the chapter

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 2025-26: 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.