Skip to content

Imagine that you are… (Class 10 Social Science 2025, Q33B)

questionbuddy.in/q/cbse-10-social-science-2025-32-4-1-q33b-imagine-village-development-officer-village

Social ScienceCBSE Class 10 · Board exam 2025, set 32/4/1 · 5 marks · Long answer

CBSE Class 10 Social Science 2025: question 33(B)

Set in the CBSE Class 10 board exam of 2025, paper 32/4/1, section D, question 33(B), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q33(B) · 5 marks · Long answerMoney and Credit

Imagine that you are the Village Development Officer of a village. Explain the usefulness of formal sources of credit for the farmers.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2025 board paper, set 32/4/1.

Hints

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

Hint 1

Name the institutions that make up formal credit and who supervises them.

Hint 2

Compare the interest charged by formal lenders with that of moneylenders.

Hint 3

Think about what lower cost of loans means for a farmer's income and debt.

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. Meaning: Formal sources of credit are banks and cooperative societies. Their lending is supervised by the RBI, so farmers are protected from exploitation.

    1 mark

  2. Reasonable interest: They charge reasonable rates of interest, so the cost of borrowing is much lower than from moneylenders.

    1 mark

  3. More income left: Because the cost of loans is low, farmers keep more of their income for themselves and for investment in farming.

    1 mark

  4. Support for small farmers and enterprise: Loans reach small cultivators and encourage those who wish to start an enterprise or buy inputs.

    1 mark

  5. Development and debt: Cheap and affordable credit is crucial for the country's development, and it reduces the chances of rural indebtedness and debt traps.

    1 mark

Answer: Formal credit from banks and cooperatives is cheap, RBI-supervised and reaches small farmers. It leaves them more income, supports enterprise and reduces indebtedness.

Where the marks are

  • Identifies formal sources as banks and cooperatives supervised by the RBI (1 mark)
  • Reasonable interest rates and lower cost to the borrower (1 mark)
  • Borrowers have more income left (1 mark)
  • Loans to small cultivators and encouragement of enterprise (1 mark)
  • Crucial for development and less rural indebtedness (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 paper2025 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.