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Read the given source and… (Social Science 2025 32/1/1 Q36)

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Social ScienceCBSE Class 10 · Board exam 2025, set 32/1/1 · 4 marks · Case-based

CBSE Class 10 Social Science 2025: question 36

Set in the CBSE Class 10 board exam of 2025, paper 32/1/1, 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)

    Cooperative societies come under which source of credit ?

    1 mark
  2. (36.2)

    Mention any two sources of capital of cooperative societies. ()

    1 mark
  3. (36.3)

    Explain the role of cooperative societies in increasing the income of farmers.

    2 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2025 board paper, set 32/1/1.

Hints

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

Hint 1

Are cooperatives regulated institutions like banks?

Hint 2

Read how the cooperative gets the funds it lends.

Hint 3

Link low-interest loans with more production and income.

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) Cooperative societies are a formal source of credit.

    1 mark

  2. (36.2) Two sources of capital: deposits from the members, and loans obtained from banks with those deposits as collateral.

    1 mark

  3. (36.3) Cooperatives give loans at low interest, which farmers use for cultivation and so increase crop production and income.

    1 mark

  4. They also give loans for implements, fisheries, trade and other needs, and pay interest on deposits, which encourages saving. This raises farmers' incomes.

    1 mark

Answer: (36.1) Formal source. (36.2) Members' deposits; bank loans against these deposits. (36.3) They provide cheap loans for cultivation, implements, fisheries and trade, and encourage saving, so farmers' incomes rise.

Where the marks are

  • Formal source (1 mark)
  • Two sources of capital, ½ mark each (1 mark)
  • Cheap loans for production (1 mark)
  • Loans for varied needs and a saving habit (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 paper2025 board paper, set 32/1/1: 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.