Class 8 Social Science Economics Chapter 3 Role of Financial Institution and Organization in social-Economic Development

Class 8 Social Science Economics Chapter 3 Role of Financial Institution and Organization in social-Economic Development Question Answer to each chapter is provided in the list so that you can easily browse throughout different chapter SEBA Class 8 Social Science Economics Chapter 3 Role of Financial Institution and Organization in social-Economic Development Notes Pdf Download and select needs one.

Class 8 Social Science Economics Chapter 3 Role of Financial Institution and Organization in social-Economic Development

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Role of Financial Institution and Organization in social-Economic Development

Chapter – 3

1. Write a Short Answer:

(a) What does a government do for social-economic development of the country.

Ans: Governments play a fundamental role in promoting social-economic development through a variety of strategies and policies. One crucial aspect is infrastructure development, where governments invest in roads, bridges, and communication networks to facilitate economic activities and enhance connectivity. Education and skill development initiatives are also prioritised, aiming to improve human capital by expanding access to quality education and vocational training. Additionally, governments implement healthcare programs to ensure public health, including immunisation campaigns and healthcare services, which contribute to a healthier and more productive workforce. Social welfare programs such as unemployment benefits and old-age pensions provide crucial safety nets, supporting vulnerable populations and reducing poverty levels. Furthermore, governments formulate industrial policies, foster trade relationships, and promote financial inclusion to stimulate economic growth and create employment opportunities. By focusing on environmental sustainability, governance reforms, and technological innovation, governments strive to achieve balanced regional development and foster sustainable economic progress for all citizens.

(b) Name some factors of economic development.

Ans: Some factors of economic development are mentioned below: 

(i)  Land.

(ii) Labour.

(iii) Capital.

(iv) Entrepreneurship.

(c) What are financial institutions and establishments?

Ans: The financial institutions include banks, credit unions, insurance companies, and investment companies. These entities offer various products and services for individual and commercial clients, such as deposits, loans, investments, and currency exchange.

(d) Write two important functions of a bank.

Ans: Financial Intermediation: Banks act as intermediaries between savers and borrowers by accepting deposits from individuals and businesses and providing loans and credit facilities to borrowers. This function facilitates the efficient allocation of funds in the economy, channelling savings into productive investments that promote economic growth. By offering various deposit products (such as savings accounts, fixed deposits) and lending options (including personal loans, mortgages, business loans), banks help meet the financial needs of different stakeholders while managing risks through prudent lending practices.

Payment and Settlement Services: Banks provide essential payment and settlement services that facilitate domestic and international transactions. Through services such as checking accounts, debit cards, credit cards, and electronic funds transfers (EFTs), banks enable individuals and businesses to make payments, transfer funds, and settle financial obligations securely and efficiently. These services support economic transactions, commerce, and trade, contributing to the smooth functioning of the economy by reducing the reliance on cash transactions and enhancing financial transparency and accountability.

(e) What is the name of the central Bank in India?

Ans: The Reserve Bank of India.

(f) where are the products produced with the assistance with NDEI

Ans: (i) Manufacturing and Industrial Production: These include advanced machinery, automotive parts, electronics, and other industrial goods that benefit from improved design and engineering techniques.

(ii) Technology and Innovation: Products such as software, hardware, and technological devices often see enhancements and innovations due to NDEI support.

(iii) Consumer Goods: Everyday items like appliances, clothing, and household products that are designed with improved functionality, sustainability, and user experience.

2. Discuss in details.

(a) Contribution of commercial banks in social-economic development.

Ans: Central banks contribute to economic growth by ensuring price stability, maintaining a stable financial system, and providing an enabling monetary policy environment.

(b) Role of North Eastern council and north-East Development Finance corporation Limited (NEDF) in the economic development of north- east India.

Ans: Role of North Eastern council and north-East Development Finance corporation Limited (NEDF) in the economic development of north- east India are mentioned below: 

(i) North Eastern Council (NEC):

(a) Regional Planning and Coordination: The NEC serves as a regional planning body that coordinates and implements development projects across the eight northeastern states of India (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura). It facilitates the formulation of development plans and policies tailored to the unique socio-economic and geographical challenges of the region.

(b) Infrastructure Development: NEC focuses on infrastructure development projects such as roads, bridges, railways, airports, and telecommunications. These efforts aim to improve connectivity within and outside the region, enhancing accessibility and reducing isolation, which are critical for economic growth and development.

(c) Promotion of Industries and Employment: NEC promotes industrial development by supporting the establishment of industrial estates, entrepreneurship development programs, and providing financial assistance for setting up industries. This initiative aims to create employment opportunities and boost income levels in the region.

(ii) North Eastern Development Finance Corporation Limited (NEDFi):

(a) Financial Support for Businesses: NEDFi provides financial assistance and support to businesses, particularly small and medium enterprises (SMEs), through various financial products such as term loans, venture capital, equity participation, and microfinance. This helps in fostering entrepreneurship, promoting sustainable business growth, and enhancing economic opportunities in the region.

(b) Infrastructure and Tourism Development: NEDFi finances infrastructure projects related to power generation, tourism, and agro-processing industries. By supporting these sectors, NEDFi contributes to improving the region’s infrastructure, boosting tourism potential, and promoting agro-based industries, which are vital for economic diversification and job creation.

(c) Capacity Building and Skill Development: NEDFi conducts capacity building programs, workshops, and training sessions to enhance the skills of local entrepreneurs and professionals. This initiative aims to build a skilled workforce capable of driving economic activities and leveraging emerging opportunities in various sectors.

(c) Aims and objectives of self – help groups.

Ans: (i) To develop energy and perseverance to work collectively on farming self- help Groups.

(ii) To provide an opportunity to approach financial institutions for loans.

(iii) To involve the members’ collectivity in economic programs.

3. Write short notes:

(a) Co-operative.

Ans: Cooperatives are organisations formed by individuals with common economic, social, or cultural interests, aiming to meet their members’ needs and aspirations. They operate on principles of voluntary membership, democratic control, and equitable distribution of benefits, distinguishing them from other business entities.

One key characteristic of cooperatives is their member-owned and member-controlled structure, where each member typically has equal voting rights regardless of their level of investment or participation. This democratic governance ensures that decisions are made in the best interests of the members, fostering transparency and accountability.

Cooperatives exist across various sectors, including agriculture, consumer goods, finance, housing, and services. In agriculture, for example, farmer cooperatives pool resources for collective purchasing of inputs, marketing of produce, and accessing credit facilities, thereby enhancing the bargaining power and economic resilience of small-scale farmers.

(b) NABARD.

Ans: The National Bank for Agriculture and Rural Development (NABARD) is a pivotal institution in India that focuses on rural development, particularly in the agricultural sector. Established in 1982, NABARD operates under the guidance of the Reserve Bank of India and the Government of India, aiming to promote sustainable and equitable agriculture and rural prosperity.

One of NABARD’s primary roles is to provide financial and developmental support to agriculture and rural sectors through various initiatives. It facilitates credit flow to agriculture, rural industries, and other allied activities by refinancing loans extended by commercial banks, cooperative banks, and regional rural banks. This ensures that farmers and rural entrepreneurs have access to affordable credit to invest in agricultural inputs, machinery, infrastructure, and other productive assets.

(c) Central Bank.

Ans: A central bank is a public institution that is responsible for implementing monetary policy, managing the currency of a country, or group of countries, and controlling the money supply.

(d) Self-help Group.

Ans: Self-help groups are informal groups of people who come together to address their common problems. While self-help might imply a focus on the individual, one important characteristic of self-help groups is the idea of mutual support – people helping each other.

4. Says true or false:

(a) Increase of per capita income obstructs growth of the nation.

Ans: False.

(b) Industries and Investment Banks provide long – term loans to the industries sector.

Ans: True.

(c) Self-help group must open a savings account in the central bank.

Ans: False.

(d) The Head office of NEDFI is in shillong.

Ans: True.

(e) Economically sound people can become members of a self – help Group.

Ans: True.