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Read the following… (Class 10 Social Science 2025, Q34)

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Social ScienceCBSE Class 10 · Board exam 2025, set 32/6/1 · 4 marks · Case-based

CBSE Class 10 Social Science 2025: question 34

Set in the CBSE Class 10 board exam of 2025, paper 32/6/1, section E, question 34, for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q34 · 4 marks · Case-basedCompetency-basedMoney and Credit

Read the following source and answer the questions that follow:

Loans from Co-operatives

Besides banks, the other major source of cheap credit in rural areas are the co-operative societies. Members of a co-operative pool their resources for co-operation in certain areas. There are several types of co-operatives possible such as farmers co-operatives, weavers co-operatives, industrial workers co-operatives etc.

Krishak Co-operative 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 co-operative 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 Co-operative provides loans for the purchase of agriculture equipments, loans for cultivation and agricultural trade, fishery loans, loans for constructions of houses and for variety of other expenses.

  1. (34.1)

    Which sector includes credit facilities offered by Co-operative Societies?

    1 mark
  2. (34.2)

    How do Self-Help Groups access external funding?

    1 mark
  3. (34.3)

    Explain the functioning of Co-operative Societies.

    2 marks

Source: official question paper from cbse.gov.in (PDF). See it in the full 2025 board paper, set 32/6/1.

Hints

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

Hint 1

Is the lender regulated by the RBI or not?

Hint 2

Think of who lends to SHGs after they save.

Hint 3

Trace the flow: deposits, bank loan, member loans, repayment.

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. (34.1) Credit from co-operative societies belongs to the formal sector of credit.

    1 mark

  2. (34.2) Self-Help Groups access external funding through loans from banks, and also from co-operatives or the government.

    1 mark

  3. (34.3) Members of a co-operative pool their resources for co-operation in certain areas, and it accepts deposits from its members. Using these deposits as collateral, it obtains a large loan from a bank.

    1 mark

  4. (34.3) The funds are lent to members for farm equipment, cultivation, fishery, house construction and other expenses. Once loans are repaid, another round of lending takes place.

    1 mark

Answer: (34.1) Formal source of credit; (34.2) loans from banks, co-operatives or government; (34.3) pooled member deposits, bank loan, lending to members, repayment and relending.

Where the marks are

  • Formal sector (1 mark)
  • SHG funding via banks/co-operatives/government (1 mark)
  • Pooling resources and obtaining a bank loan against deposits (1 mark)
  • Lending to members and relending after repayment (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 32/6/1: 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.