Memorization tricks
4 min read

Money And Credit

- Having a hard time to remember? Go through the section and get the know-how of topics at your finger tips!
1
Money is anything that is used as a medium of exchange, i.e. it is used to purchase goods and services. In earlier times, there was a system of exchange of "goods for goods", and it also included exchange of services. It was known as the barter system. This was the older form of money, let's learn about the modern forms of money with the help of following flowchart:
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Let's get a detailed understanding about the modern forms of money with the help of following video:
Modern Forms of Money
5 mins
2
What were the problems with the old form of money? What was making the exchange of goods and services difficult? Let's understand the limitations of the barter system.
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Let's get better understanding of double coincidence of wants with the help of following video:
Money as a medium of exchange
2 mins
3
Money (or property) given with the promise that it will be paid back in the future, usually with interest, is known as loan. Banks give loans for various economic activities. The depositors deposit money in the bank and get an interest on it; and on the other hand, borrowers borrow money from the bank and pay interest on it. The difference in the interest rates what is charged from borrowers and what is paid to depositors is the bank's income or profit.
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4
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Let's dive into the video for detailed understanding of formal and informal sector loans:
CBSE Class 10 | Civics | Formal and Informal Credit |
4 mins