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Analyse the importance… (Class 10 Social Science 2026, Q38a)

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Social ScienceCBSE Class 10 · Board exam 2026, set 32/3/1 · 5 marks · Long answer

CBSE Class 10 Social Science 2026: question 38(a)

Set in the CBSE Class 10 board exam of 2026, paper 32/3/1, section D, question 38(a), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q38(a) · 5 marks · Long answerMoney and Credit

Analyse the importance of credit in the economic development of the country.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 32/3/1.

Hints

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

Hint 1

Think of who needs money before earning from production.

Hint 2

Consider farmers, industries and ordinary households separately.

Hint 3

Link the increase in production to jobs and growth.

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. Credit plays an important and positive role in economic development. It helps people meet their ongoing production costs.

    1 mark

  2. Credit helps people start new businesses and small enterprises, and invest in agriculture, industry, education and infrastructure. This promotes economic growth.

    1 mark

  3. Farmers borrow to buy seeds, fertilisers and machinery, which raises agricultural output.

    1 mark

  4. As businesses expand, more jobs are created and employment opportunities increase.

    1 mark

  5. Industries need money to buy machines, technology and raw materials, and credit supplies it. People also borrow to improve their standard of living, for example for houses and vehicles.

    1 mark

Answer: Credit supports production, new businesses, agriculture, industry, employment and a better standard of living, so it drives economic development.

Where the marks are

  • Positive role of credit in development (1 mark)
  • Helps start businesses and invest (1 mark)
  • Helps farmers raise output (1 mark)
  • Creates employment (1 mark)
  • Industry finance and improved living standards (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 paper2026 board paper, set 32/3/1: 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.