Samacheer Kalvi Class 8 Social Science Solutions Chapter 1 Money, Savings and Investment

I. Choose the Correct Answer.

Question 1. Which metals were used for metallic money?
(a) gold
(b) silver
(c) bronze
(d) all of the options
Answer: (d) all of the options
In simple words: Gold, silver, and bronze were good because they lasted long and were worth a lot. These metals were chosen because they were durable and valuable.

🎯 Exam Tip: When answering about historical currency, remember that value, durability, and divisibility were key considerations for selecting metals.

Question 2. Who designed the symbol (Rs) of Indian rupee?
(a) Udayakumar
(b) Amartya Sen
(c) Abijith Baneijee
(d) None of the options
Answer: (a) Udayakumar
In simple words: Udayakumar designed the Rupee sign that we use today. The symbol was chosen from entries in a public competition.

🎯 Exam Tip: Knowing the origins of national symbols like currency helps understand cultural and economic history.

Question 3. The value of money is
(a) Internal value of money
(b) External value of money
(c) Both (a) and (b)
(d) None of the options
Answer: (c) Both (a) and (b)
In simple words: Money has value both inside the country and when compared to other countries' money. Understanding both helps in controlling inflation and economic stability.

🎯 Exam Tip: When evaluating money's value, consider both its purchasing power within a country and its exchange rate with other currencies.

Question 4. Which is the Bank Money?
(a) Cheque
(b) Draft
(c) Credit and Debit cards
(d) All of the options
Answer: (d) All of the options
In simple words: Bank money includes many ways to pay without using physical cash, like checks and cards. These methods make transactions easier and safer than carrying cash.

🎯 Exam Tip: Recognize that "bank money" refers to various non-cash instruments and digital forms that facilitate payments and transactions.

Question 5. Pick out the incorrect one: Investment can be made in different vehicle.
(a) Stock
(b) bonds
(c) Mutual fund
(d) Pay tax
Answer: (d) Pay tax
In simple words: Stocks, bonds, and mutual funds are ways to invest money, but paying tax is not an investment. Pay tax is an obligation, not a way to grow wealth like other investment options.

🎯 Exam Tip: Clearly differentiate between financial instruments designed for wealth growth (investments) and mandatory government obligations (taxes).

Question 6. Among the following who are responsible for Black Money?
(a) Tax evaders
(b) Hoarders
(c) Smugglers
(d) All of the options
Answer: (d) All of the options
In simple words: Many groups of people, like those who avoid taxes or smuggle goods, cause black money to exist. These actions bypass official financial systems, harming the economy.

🎯 Exam Tip: Understand that black money results from illegal activities and tax avoidance by various individuals and groups.

II. Fill in the Blanks.

Question 1. Online Banking is also known as ........
Answer: Internet banking
In simple words: Online banking is also known as internet banking. This makes banking services available from anywhere with an internet connection.

🎯 Exam Tip: Remember that online banking refers to managing bank accounts and services via the internet.

Question 2. ........ is what money does.
Answer: Money
In simple words: Money helps us buy and sell things easily. Money makes trade and transactions possible, acting as a universal medium.

🎯 Exam Tip: Focus on the fundamental function of money as a medium of exchange in the economy.

Question 3. Electronic banking is also known as
Answer: NEFT
In simple words: Electronic banking is also called NEFT. NEFT allows fast and secure transfer of money between banks.

🎯 Exam Tip: Recall that NEFT (National Electronic Funds Transfer) is a system for electronic fund transfers in India, synonymous with electronic banking.

Question 4. Credit cards and Debit cards are Money.
Answer: Plastic money
In simple words: Credit and debit cards are a type of plastic money. These cards offer convenience and security in transactions without needing cash.

🎯 Exam Tip: Classify credit and debit cards under the broader term "plastic money" due to their physical form and electronic function.

Question 5. In the year Reserve Bank of India was established.
Answer: 1935
In simple words: The Reserve Bank of India was set up in the year 1935. The RBI plays a crucial role in managing India's money and banking system.

🎯 Exam Tip: Know the establishment year of key financial institutions like the RBI, as it marks a significant economic milestone.

III. Match the Following.

Question. Match the Following.

🎯 Exam Tip: Pay close attention to definitions and historical facts when matching economic terms to their descriptions or dates.

IV. Write the One Word Answer.

Question 1. The word Money is derived from?
Answer: The word Money is derived from the Roman word “Moneta Juno"
In simple words: The word 'money' comes from the Roman term 'Moneta Juno'. This ancient Roman goddess was associated with money, reflecting its historical significance.

🎯 Exam Tip: Knowing the etymology of economic terms can offer insight into their historical context and importance.

Question 2. Who Prints and issues paper currencies in India?
Answer: The Reserve Bank of India.
In simple words: The Reserve Bank of India is in charge of printing and giving out paper money in India. The RBI ensures the stability and value of the Indian currency.

🎯 Exam Tip: Remember that the Reserve Bank of India (RBI) is the central authority responsible for currency issuance and monetary policy.

V. Choose the Correct Statement:

Question 1. Barter system had many deficiencies like
I. Lack of double coincidence of wants
II. No difficulties of storing wealth
III. Common measure of value
IV. Indivisibility of commodities
(a) I and II is correct
(b) I and IV is correct
(c) I, III and IV is correct
(d) All are correct
Answer: (c) I, III and IV is correct
In simple words: The barter system was hard because people needed to find someone who wanted what they had and had what they wanted, it was hard to compare values, and some goods couldn't be easily split. These problems highlight why societies moved towards using money instead.

🎯 Exam Tip: Focus on the fundamental challenges of the barter system that led to the development of money, such as the need for mutual wants and a standard measure of value.

VI. Find out the odd one:

Question 1. Recent forms of money transactions are
(a) Credit card
(b) Barter system
(c) Debit card
(d) Online banking
Answer: (b) Barter System
In simple words: Credit cards, debit cards, and online banking are new ways to use money, but the barter system is a very old way of trading. The barter system represents a very old way of exchange, unlike the modern digital methods.

🎯 Exam Tip: Distinguish between modern electronic payment methods and the ancient system of direct goods exchange (barter).

Question 2. Effects of black money on the economy is
(a) Dual economy
(b) Undermining equity
(c) No effects on production
(d) lavish consumption spending
Answer: (c) No effects on production
In simple words: Black money causes problems like unfairness and high spending, but it doesn't usually mean there is 'no effect on production'. While black money has many negative impacts, simply having no effect on production isn't its typical outcome.

🎯 Exam Tip: Be careful to identify the actual negative consequences of black money, as some options might seem plausible but are not accurate effects.

VII. Write Short Answer:

Question 1. What is the Barter System?
Answer:
• The barter system is a way of trading goods directly for other goods without using money in early times.
• It is an old method of exchange.
In simple words: The barter system is a way of trading goods directly for other goods without using money. It shows a time before coins and notes made buying and selling much simpler.

🎯 Exam Tip: Define the barter system by its core characteristic: direct exchange of goods and services without the use of currency.

Question 2. What are the recent forms of money?
Answer:
• ATM cards
• Bank transfers
• Online Banking
• Mobile Banking
In simple words: New types of money include ATM cards, bank transfers, online banking, and mobile banking, which make transactions easy. These modern forms allow for quick, secure, and convenient financial transactions in daily life.

🎯 Exam Tip: List various modern forms of money beyond physical cash, focusing on digital and electronic methods.

Question 3. Short note on E-Banking and E-Money.
Answer:
E-Money: Electronic Money is money that exists in banking computer systems and is available for transactions through an electronic system. It can be used for payments and transfers without physical cash.
E-Banking: Electronic banking, also known as National Electronic Funds Transfer (NEFT), is simply the use of electronic means to transfer funds directly from one account to another rather than by cheque or cash. This allows for quick and secure transfers.
In simple words: E-money is money in computer systems used for electronic deals. E-banking, or NEFT, lets you send money from one bank account to another using computers, not cash or checks. These technologies have revolutionized how people manage and transfer funds globally.

🎯 Exam Tip: Clearly define E-money as digital cash and E-banking as the electronic process for transactions, emphasizing their distinct roles.

Question 4. What are the essentials of Money in your life?
Answer:
• Money is a basic need for people.
• Money helps us pay for school fees, travel, and communication, and to buy many different things for fun.
• It is also used for daily transactions and to save wealth for the future.
In simple words: Money is important for people to live, pay for school, travel, talk to others, buy things, and save for later. Money simplifies complex economic interactions and helps individuals plan for their future.

🎯 Exam Tip: When discussing the importance of money, focus on its roles in meeting basic needs, facilitating transactions, and enabling savings.

Question 5. What is the Value of Money?
Answer: The value of money is how much goods and services it can buy in a country.
In simple words: The value of money means how much stuff you can buy with it in a country. The purchasing power indicates how many goods and services a unit of money can buy.

🎯 Exam Tip: Define the value of money in terms of its purchasing power – what it can acquire in goods and services.

Question 6. What is Savings and Investment?
Answer:
• Savings: This is the part of a person's income that is not spent on current needs but kept aside for future use.
• Investment: This means putting money into an asset, like property or stocks, with the aim of earning more money or returns.
In simple words: Savings are the part of income you don't spend now, but keep for later. Investment is putting that money into assets to make more money. Both are crucial for individual financial security and overall economic growth.

🎯 Exam Tip: Differentiate savings as deferred consumption and investment as capital allocation for future gains, noting their distinct purposes.

Question 7. What is meant by Black Money?
Answer: Black money is income that people earn but do not tell the government about, often to avoid paying taxes. This money is not recorded in official accounts, making it illegal.
In simple words: Black money is income that people earn but do not tell the government about, often to avoid paying taxes. It undermines the economy by avoiding taxes and making economic planning difficult.

🎯 Exam Tip: Define black money as undisclosed and untaxed income, often generated through illegal activities.

Question 8. What are the effects of black money on the economy?
Answer:
• It creates a dual economy, where official and unofficial transactions run parallel.
• It makes the distribution of wealth unfair by undermining equality.
• It negatively affects production.
• It leads to an unfair distribution of scarce resources.
In simple words: Black money creates a dual economy, leads to tax evasion, makes society unfair, widens the rich-poor gap, causes wasteful spending, distorts production, makes resources scarce, and affects overall production. Addressing black money is crucial for fostering an equitable and transparent economic system.

🎯 Exam Tip: When listing effects of black money, focus on its negative impacts on fairness, taxation, resource distribution, and overall economic health.

VIII. Write Brief Answer.

Question 1. What are the disadvantages of the barter system?
Answer:
1. Lack of double coincidence of wants: Two people must both want what the other has to offer.
2. Common measure of value: There is no standard way to compare the value of different goods.
3. Indivisibility of commodities: Some goods cannot be easily divided for exchange.
4. Difficulties of storing wealth: Storing perishable goods as wealth is challenging.
In simple words: The barter system has problems like needing two people to want each other's goods, not having one way to measure value, not being able to divide some goods easily, and being hard to store wealth. These challenges led to the development of money as a more efficient medium of exchange.

🎯 Exam Tip: Clearly articulate each disadvantage of the barter system, focusing on how each problem impedes efficient trade.

Question 2. Write about the evolution of Money?
Answer:
• The word "Money" comes from the Roman word "Moneta Juno," who was a Roman goddess associated with finances.
• The Indian Rupee comes from the Sanskrit word 'Rupya', which means silver coins.
• We now use paper notes and coins as money, which are much more convenient than older methods.
• This evolution did not happen quickly; it took thousands of years to reach the current stage.
• There have been many stages in the evolution of money, starting with the earliest and most primitive system, the Barter system.
In simple words: The word 'Money' comes from the Roman word 'Moneta Juno'. Over thousands of years, money changed from things like silver coins (like the Indian Rupee from 'Rupya') to paper notes, and now even digital money, replacing the older barter system. Money has transformed from simple commodities to complex digital forms, adapting to societal needs.

🎯 Exam Tip: Trace the historical development of money from ancient forms like barter and commodity money to modern paper and digital currencies.

Question 3. What are the functions of Money? and explain it.
Answer: Functions of money are categorized into Primary or Main functions, Secondary functions, and Contingent functions.
Primary or main functions:
1. Medium of exchange or means of payment: Money is used to buy goods and services easily, avoiding the complexities of barter.
2. Measure of value: All values are expressed in terms of money, making it simpler to determine the exchange rate between different goods and services.
Secondary functions:
1. Standard of deferred payment: Money helps in making future payments. A borrower can agree to pay a specific amount of money on a future date.
2. Store of value or store of purchasing power: Money allows people to save their wealth for future use, unlike perishable goods in a barter system.
3. Transfer of value or transfer of purchasing power: Money makes it possible to exchange goods over long distances and across borders, facilitating global trade.
Contingent functions:
• Basis of credit: Money serves as the foundation for credit systems, allowing loans and financial transactions.
• Increase the productivity of capital: Money helps in allocating resources efficiently, which boosts capital productivity.
• Measurement and Distribution of National Income: Money is used to measure and distribute the total income of a nation.
In simple words: Money has main jobs like being a way to trade and measure value. It also has secondary jobs like helping with future payments and saving value. Finally, it has extra jobs like helping with credit and showing national income. Money acts as the lubricant for a modern economy, facilitating all aspects of trade and finance.

🎯 Exam Tip: Systematically list and explain money's functions under primary, secondary, and contingent categories, providing a brief description for each.

Question 4. Explain the types of Bank Deposits.
Answer:
1. Student Savings Account: These accounts are offered by some banks specifically for young people in school or college. They usually have more flexible terms, such as lower minimum balance requirements.
2. Savings Deposits: These accounts are opened by customers to save a portion of their current income. Customers can withdraw money when needed, and the bank provides a small amount of interest on these savings.
3. Current Account Deposit: These accounts are generally opened by businesses, traders, and public authorities. They are designed for frequent banking transactions, and money can be withdrawn on demand.
4. Fixed Deposits: These accounts are for investors who want their main amount to be safe and earn fixed returns. Fixed deposits are also known as Term deposits because the money is fixed for a specified period.
In simple words: Banks offer different ways to save money, like student accounts with easy rules, regular savings accounts to keep current income with a little interest, current accounts for businesses that need to make many payments, and fixed deposits for saving money for a set time to earn more interest. Each type of deposit caters to different financial needs, from daily transactions to long-term savings.

🎯 Exam Tip: Clearly describe each type of bank deposit, highlighting its purpose, features, and target users.

Question 5. What is the difference between savings and investment?
Answer:

🎯 Exam Tip: Use a comparative table to clearly outline the distinctions between savings and investment based on key factors like purpose, risk, and liquidity.

Question 6. What are the effects of black money on the economy?
Answer:
1. Dual economy: Black money creates a parallel economy, leading to a split between the legal and illegal financial systems.
2. Tax evasion: It results in a significant loss of revenue for the government due to unpaid taxes.
3. Undermining equity: It leads to social injustice and inequality among citizens.
4. Widening gap between the rich and poor: Black money often concentrates wealth in the hands of a few, increasing the disparity.
5. Lavish consumption spending: Individuals with black money tend to spend extravagantly, affecting normal market patterns.
6. Distortion of production pattern: Resources may be misallocated to sectors that facilitate black money, rather than productive ones.
7. Distribution of scarce resources: Black money can lead to an unfair distribution of limited resources.
8. Effects on production: It can discourage genuine economic activities and investments.
In simple words: Black money creates a dual economy, leads to tax evasion, makes society unfair, widens the rich-poor gap, causes wasteful spending, distorts production, makes resources scarce, and affects overall production. Addressing black money is crucial for fostering an equitable and transparent economic system.

🎯 Exam Tip: Provide a comprehensive list of black money's negative impacts on the economy, covering taxation, social equity, and resource allocation.

Samacheer Kalvi 8th Social Science Money, Savings and Investments Additional Important Questions and Answers

I. Choose the Correct Answer

Question 1. The word rupee is derived ........ from
(a) Hindi
(b) Tamil
(c) Malayalam
(d) Sanskrit
Answer: (d) Sanskrit
In simple words: The word 'rupee' comes from the ancient Indian language, Sanskrit. Sanskrit roots show the long history and cultural significance of currency in India.

🎯 Exam Tip: Recognize Sanskrit as the origin of the word 'rupee', linking it to India's ancient linguistic heritage.

Question 2. In the sultans period, the gold, silver, and copper coins were known as ..........................
(a) Panas
(b) Karhapanas
(c) Tanka
(d) Tanka
Answer: (c) Tanka
In simple words: During the Sultan's time, gold, silver, and copper coins were called 'Tanka'. These various coin names reflect the rich numismatic history of different Islamic rulers in India.

🎯 Exam Tip: Identify 'Tanka' as a key coin denomination used during the Sultanate period in India.

Question 3. King Midas of Lydia invented metal coin in the .................. century.
(a) 5th
(b) 6th
(c) 7th
(d) 8th
Answer: (d) 8th
In simple words: King Midas of Lydia first made metal coins in the 8th century. This innovation was a key step in developing standardized currency for trade.

🎯 Exam Tip: Remember King Midas of Lydia for his significant role in inventing metal coinage and the century it occurred.

Question 4. Recent plastic money is ..........................
(a) Cheques
(b) Bondy
(c) Paper money
(d) Credit card
Answer: (d) Credit card
In simple words: Credit cards are a modern type of plastic money. Credit cards represent a convenient and widely adopted form of cashless payment.

🎯 Exam Tip: Categorize credit cards as a primary example of "plastic money" in modern transactions.

Question 5. Metal coins invented by ..........................
(a) Alexander
(b) Socrates
(c) Midas
(d) Ashoka
Answer: (c) Midas
In simple words: King Midas is known for inventing metal coins. Midas's contribution to coinage laid a foundation for monetary systems.

🎯 Exam Tip: Link the invention of metal coins specifically to King Midas in historical contexts.

Question 6. The British silver coins were termed as ..........................
(a) Carolina
(b) Angelina
(c) Cupperoon
(d) tinny
Answer: (b) Angelina
In simple words: British silver coins were known as 'Angelina'. The naming of coins often reflects the monarch or influential figures of the era.

🎯 Exam Tip: Recognize specific historical names given to coins, such as 'Angelina' for certain British silver coins.

Question 7. The British silver coins were termed as ..........................
(a) Carolina
(b) Angelina
(c) Cupperoon
(d) tinny
Answer: (c) Cupperoon
In simple words: Another type of British silver coin was called 'Cupperoon'. The varied denominations of British coinage had distinct names reflecting their specific values and designs.

🎯 Exam Tip: Note that multiple terms existed for British silver coins, indicating different types or denominations.

Question 8. Credit money or bank money is known as ..........................
(a) Cheque
(b) Near money
(c) Plastic money
(d) E. money
Answer: (a) Cheque
In simple words: Credit money or bank money is also called a cheque. Cheques allow for secure and traceable transactions without physical cash.

🎯 Exam Tip: Understand that a cheque represents a form of credit or bank money, enabling transactions without direct cash exchange.

Question 9. Prevention of money laundering act implemented in the year ..........................
(a) 2002
(b) 2004
(c) 2006
(d) 2008
Answer: (a) 2002
In simple words: The law to stop money laundering was put into action in the year 2002. This law helps combat financial crimes and promotes transparency in the economy.

🎯 Exam Tip: Recall the year 2002 as the implementation date for the Prevention of Money Laundering Act (PMLA).

Question 10. Prevention of corporation act implemented in the year ..........................
(a) 1988
(b) 1990
(c) 1992
(d) 1994
Answer: (a) 1988
In simple words: The law about corporations was started in the year 1988. Such acts provide a legal framework for the functioning of corporations and economic governance.

🎯 Exam Tip: Identify the year 1988 as when the Prevention of Corruption Act was implemented, which targets corporate misconduct.

II. Fill in the Blanks

Question 1. .......................... Indian coins were minted in the 6th century.
Answer: Puranas, karshapanas, or panas
In simple words: In the 6th century, Indian coins like Puranas, Karshapanas, or Panas were made. These early coins were crucial for facilitating trade and economic activity in ancient India.

🎯 Exam Tip: Recall the names of ancient Indian coins such as Puranas, Karshapanas, or Panas, and their approximate period of use.

Question 2. .................... kings introduced the Greek custom of engraving portraits on the coins.
Answer: Indo-Greek Kushan kings brought in the Greek way of putting portraits on coins. This style often featured the ruler's image on the currency, a practice adopted from Greek traditions.
In simple words: Indo-Greek Kushan kings started the practice of putting Greek-style pictures on coins.

🎯 Exam Tip: Remember the Indo-Greek Kushan kings for introducing the portrait engraving custom on coins in ancient India.

Question 3. Lower valued coins known as .................... in sultans period.
Answer: During the Sultanate period, coins that had a lower value were called Jittal. These coins played an important role in daily transactions for common people.
In simple words: Small value coins were called Jittal during the time of the Sultans.

🎯 Exam Tip: Know the specific names for different types of coins used in various historical periods, like Jittal for lower-valued coins during the Sultanate era.

Question 4. 178 gms of silver coin were issued by ....................
Answer: Shershah Suri was the ruler who introduced silver coins weighing 178 grams. This standardized silver coin was known as the Rupiya and greatly influenced future Indian currency.
In simple words: Shershah Suri made a 178-gram silver coin.

🎯 Exam Tip: Associate Shershah Suri with the introduction of a specific 178-gram silver coin, which was an important part of his currency reforms.

Question 5. The meaning of rupia is ....................
Answer: The word 'rupia' means a silver coin. This term has evolved over time to become the name of the modern Indian currency, the Rupee.
In simple words: Rupia means a coin made of silver.

🎯 Exam Tip: Understand the origin and meaning of key terms, such as 'rupia' referring to a silver coin, to better grasp historical currency concepts.

Question 6. .................... gave permission to the British to coin Mughal Money.
Answer: The Mughal emperor Farrukhsiyar gave permission to the British to mint Mughal currency. This grant was a significant step in the expansion of British influence in India.
In simple words: Emperor Farrukhsiyar allowed the British to make Mughal coins.

🎯 Exam Tip: Remember Farrukhsiyar as the Mughal emperor who granted the British the right to coin money, marking an early step in British financial influence.

Question 7. Mughal money coined at the .................... mint.
Answer: Mughal coins were minted in the Bombay mint. This city was an important center for trade and administration, making it a suitable location for minting.
In simple words: Mughal money was made at the Bombay mint.

🎯 Exam Tip: Recall key mint locations like Bombay where Mughal currency was produced, as this highlights important trade and administrative centers.

Question 8. The British gold coins were termed as ....................
Answer: The British called their gold coins 'Carolina'. These coins were part of the British currency system in their colonial territories.
In simple words: British gold coins were named Carolina.

🎯 Exam Tip: Familiarize yourself with the names of different coins issued by colonial powers, such as 'Carolina' for British gold coins.

Question 9. The British tin coins were termed as ....................
Answer: The British called their tin coins 'tinny'. These coins were made from tin, a common metal, and were used for smaller transactions.
In simple words: British coins made of tin were called tinny.

🎯 Exam Tip: Note the unique names given to British coins, like 'tinny' for those made of tin, reflecting the materials used.

Question 10. The advantage of the Barter system is not the involvement of ....................
Answer: A key feature of the barter system, which is also seen as an advantage by some, is that it does not involve money. This means transactions can occur even without a common currency.
In simple words: The barter system does not use money, which some see as a good thing.

🎯 Exam Tip: When discussing the barter system, emphasize its defining characteristic: the absence of money, which can be both an advantage and a disadvantage.

Question 11. Exchange of goods for goods was known as ....................
Answer: The process of exchanging goods directly for other goods, without using money, is called Barter Exchange. This was the main way people traded before money was invented.
In simple words: Trading goods for other goods is known as Barter Exchange.

🎯 Exam Tip: Define Barter Exchange clearly as the direct exchange of goods or services without the use of currency.

Question 12. On the basis of storage of gold they were issued by the goldsmith.
Answer: Goldsmiths issued receipts to people who stored gold with them, which later became a form of early money. These receipts were essentially promises to pay back the gold and could be traded.
In simple words: Goldsmiths gave receipts for stored gold.

🎯 Exam Tip: Understand how early forms of money, like goldsmiths' receipts for gold, paved the way for modern currency systems.

Question 13. Paper money regulated and controlled by the .................... of the country.
Answer: In a country, paper money is managed and controlled by its Central Bank, which in India is the Reserve Bank. The Central Bank makes sure the right amount of money is in circulation.
In simple words: The Central Bank or Reserve Bank of a country controls its paper money.

🎯 Exam Tip: Identify the Central Bank (like the Reserve Bank of India) as the main authority responsible for regulating and controlling a country's paper currency.

Question 14. Electronic banking is also known..................
Answer: Electronic banking is also referred to as National Electronic Funds Transfer (NEFT). This system allows for easy and quick transfer of money between bank accounts.
In simple words: Electronic banking is also called NEFT.

🎯 Exam Tip: Know the acronyms for common banking services, such as NEFT (National Electronic Funds Transfer), often used interchangeably with electronic banking.

Question 15. The Real Estate Regulation and Development Act implemented in the year ....................
Answer: The Real Estate Regulation and Development Act was put into action in the year 2016. This law protects homebuyers and helps make the real estate sector more transparent.
In simple words: The RERA Act for real estate started in 2016.

🎯 Exam Tip: Remember the year 2016 for the implementation of the Real Estate Regulation and Development Act (RERA), which brought significant changes to the real estate sector.

III. Match the Following

🎯 Exam Tip: To score well in matching questions, first connect the terms you are absolutely sure about, then use the process of elimination for the remaining options.

IV. Write the One Word Answer.

Question 1. What is inflation.?
Answer: Inflation is when the prices of goods and services keep going up, which means your money can buy less than before. This makes the value of money go down over time.
In simple words: Inflation means prices are rising, so money buys less.

🎯 Exam Tip: Clearly define inflation by mentioning both rising prices and the decrease in the purchasing power of money.

Question 2. What is Deflation?
Answer: Deflation is the opposite of inflation; it happens when the prices of goods and services generally go down. This increases the buying power of money, meaning your money can purchase more.
In simple words: Deflation means prices are falling, so money buys more.

🎯 Exam Tip: Distinguish deflation from inflation by explaining that prices fall and the value of money increases during deflation.

V. Choose the Correct Statement:

Question 1. Which of the following are effects of black money on the economy?
(a) Dual economy
(b) Tax evasion
(c) Loss of revenue to government
(d) Widening gap between the rich and poor
Answer: (d) All of the options
In simple words: Black money causes a dual economy, makes people avoid paying taxes (which means less money for the government), and increases the gap between rich and poor people.

🎯 Exam Tip: Remember that black money has multiple negative impacts, including creating a dual economy, fostering tax evasion, reducing government revenue, and increasing income inequality.

Question 2. Different investment vehicle.
(a) Revenue
(b) Bonds
(c) Insurance
Answer: (a) Revenue
In simple words: Revenue, which is the money a business earns, is given here as an investment vehicle.

🎯 Exam Tip: Understand what an investment vehicle is and how different financial instruments allow for investment. Always carefully read the question and options.

VI. Write Short Answer:

Question 1. Explain - Savings Deposits.
Answer: Savings deposits are bank accounts where customers put aside a portion of their income that they do not need right away. This money is kept safe for future use and typically earns a small amount of interest.
In simple words: Savings deposits are accounts where people save money they don't spend now, for later.

🎯 Exam Tip: When explaining savings deposits, highlight that they are used to store unspent income for future needs, often earning a small interest.

Question 2. Explain - symbol of the Rupee.
Answer: The symbol for the Indian Rupee, \( \text{Rs.} \), was created by Mr. Udayakumar from Villupuram District in Tamil Nadu. The Government of India officially approved this symbol on July 15, 2010. This symbol uniquely identifies the Indian currency worldwide and represents its strength.
In simple words: Mr. Udayakumar from Tamil Nadu made the Indian Rupee symbol, \( \text{Rs.} \). The government approved it on July 15, 2010.

🎯 Exam Tip: Remember the designer of the Indian Rupee symbol, Mr. Udayakumar, and the date of its official adoption (July 15, 2010).

Question 3. What are the Benefits of Savings?
Answer: Saving money brings several benefits. It helps us become financially independent earlier, meaning we won't have to depend on others for money. Savings also provide a safety net, so we don't have to worry about unexpected costs. Furthermore, having a financial backup gives security if we lose our job, and helps us prepare for any life changes that might occur, leading to a more secure future.
In simple words: Saving helps us become financially free and not worry about sudden costs. It gives us money if we lose our job and prepares us for changes.

🎯 Exam Tip: List the benefits of savings by focusing on financial independence, emergency preparedness, job security, and adaptability to life changes.

Question 4. What are the intention to save among the students?
Answer: The intentions behind encouraging students to save include teaching them about taxes and accounting, and involving them in making responsible financial decisions. Students are also encouraged to apply for scholarships and learn to manage a budget, which can help with student loans. The goal is to teach them personal savings habits and encourage them to open a student Sanchayeka Scheme, preparing them for future financial stability and awareness.
In simple words: We encourage students to save to teach them about money, taxes, and budgeting. This helps them with scholarships, loans, and building good saving habits like using the Sanchayeka Scheme.

🎯 Exam Tip: When discussing student savings, focus on the educational and practical goals: financial literacy, responsible decision-making, and long-term financial planning through schemes like Sanchayeka.

VII. Write Brief Answer:

Question 1. Explain the different definitions of money.
Answer: Different experts define money in various ways. Scitovsky said that money is hard to define because it does three things: it acts as a way to count value (unit of account), a way to trade (medium of exchange), and a way to hold wealth (store of value). Sir John Hicks simply stated that money is defined by what it does; if something works as money, then it is money. Other economists define money based on laws, stating that whatever the government declares as money is considered money, emphasizing its legal tender status.
In simple words: Experts define money differently. Scitovsky said money is hard to define because it has three roles: counting value, exchanging goods, and storing wealth. Sir John Hicks said money is what money does. Others say money is what the government calls money.

🎯 Exam Tip: When explaining definitions of money, cite different economic perspectives, such as functional definitions (Scitovsky, Hicks) and legal definitions, to show a comprehensive understanding.

Question 2. What are the Laws and steps taken by India Government against Black money.
Answer: The Indian Government has taken several legal and practical steps to fight black money. a) Legislative Frameworks include: * The Prevention of Money Laundering Act, 2002, to prevent illegally obtained money from appearing legitimate. * The Lokpal and Lokayukta Acts, which help in checking corruption and misuse of power. * The Prevention of Corruption Act, 1988, aimed at curbing corruption in public life. * The Undisclosed Foreign Income and Asset Bill (Imposition of Tax), 2015, targeting undeclared assets held abroad. * The Benami Transactions Prohibition Act, 1988, which was updated in 2016 to prevent property transactions in someone else's name to hide ownership. * The Real Estate (Regulation and Development) Act, 2016, also known as RERA, bringing transparency to the real estate sector, often a conduit for black money. b) Recent Steps include: * Under pressure from India and other countries, Switzerland has made key changes in its local laws governing assistance for foreign funds allegedly stashed in Swiss Banks, making it harder to hide money. * A Special Investigation Team (SIT) was set up by the government, following Supreme Court orders, to deal with black money, specifically focusing on its recovery and prevention. * The government also implemented demonetization, which removed certain banknotes from circulation to curb black money, counterfeit currency, and terrorism financing.
In simple words: India fights black money using many laws. These include acts against money laundering, corruption, and undisclosed foreign assets. There are also laws for Benami transactions and real estate. Recently, India pushed Switzerland to change laws, set up a special team, and did demonetization to tackle black money.

🎯 Exam Tip: When detailing measures against black money, categorize them into legislative frameworks (acts) and recent operational steps (international cooperation, SIT, demonetization) for a structured answer.