SEBA Class 9 Social Science Important Chapter 13 Introduction to Financial Literacy

SEBA Class 9 Social Science Important Chapter 13 Introduction to Financial Literacy Solutions English Medium As Per New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters SEBA Class 9 Social Science Additional Solutions and select need one. NCERT Important Solutions For Class 9 Social Science Download PDF. Important Notes for Class 9 Social Science.

SEBA Class 9 Social Science Important Chapter 13 Introduction to Financial Literacy

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. Assam SEBA Board Class 9 Social Science Additional Question Answer are part of All Subject Solutions. Here we have given CBSE Class 9 Social Science Important Notes for All Chapters, You can practice these here.

Introduction to Financial Literacy

Chapter: 13

Part – IV: Economics

IMPORTANT QUESTION ANSWER

1. What is the most acceptable definition of money?

Ans: According to Professor Crowther, “Money is a universally acceptable medium of exchange and at the same time it acts as a measure and a store of value”.

2. What was the Barter System?

Ans: It was the first stage in the evolution of money, where goods were used as a medium of exchange for goods.

3. Give an example of ‘Non-legal Tender Money’.

Ans: A cheque is an example of non-legal tender money, refusing which is not a violation of the law.

4. What is ‘Token Money’?

Ans: When the written or marked value (face value) of money is greater than its metallic or paper intrinsic value, it is called token money.

5. What are examples of Plastic Money?

Ans: Credit cards and debit cards are examples of plastic money.

6. What is meant by Financial Literacy?

Ans: The ability of a person to make the best financial decisions in their daily life is called financial literacy.

7. What are the main sources of Income?

Ans: The main sources of income are— Salary, Rent, Interest, and Profit.

8. What is the formula for Savings?

Ans: The formula for savings is: Savings = Income – Expenses.

9. What are ‘Recurring Expenses’?

Ans: The expenses for which money has to be paid at regular intervals (e.g., house rent, electricity bills) are called recurring expenses.

10. What is the main objective of Investment?

Ans: Investing money in financial and non-financial assets with the purpose of earning more in the future is called investment.

11. What does ‘Liquidity’ mean in the context of investment?

Ans: The ability to instantly convert invested money into cash during times of need is called liquidity.

12. What is the timeframe for short-term financial goals?

Ans: The financial goals that a person wants to fulfill within a year are short-term goals.

13. What is the meaning of ‘T’ in setting SMART goals?

Ans: ‘T’ means Time-bound, meaning there should be a clear timeframe or date for fulfilling the goal.

14. What does Asset mean?

Ans: An asset is a resource with economic value from which a person can expect to earn a profit in the future (e.g., land, house).

15. Who controls High Power Money?

Ans: High power money is under the control of the central bank of the country.

Long Answer Questions:

1. Describe the stages of the evolution of money.

Ans: The evolution of money has gone through several stages:

(i) Barter System: The exchange of goods for goods.

(ii) Animal Standard: Using animals like goats as a medium of exchange.

(iii) Metallic Standard: The use of precious metals like gold and silver.

(iv) Coinage (Minting of coins): Making coins from pieces of gold and silver.

(v) Paper Money: The introduction and circulation of paper money.

(vi) Digital Money: Online transactions through credit cards, debit cards, UPI, etc.

2. What are the main functions of money in an economy?

Ans: The main functions of money are:

(i) Medium of exchange: Money acts as a medium for buying and selling goods and services.

(ii) Measure of value: The value of all goods and services is expressed in terms of money.

(iii) Standard of deferred payment: Accounts for future payments, receipts, or debts are settled through the medium of money.

(iv) Store of value: Money can be saved as wealth for future needs, because money provides stability.

3. Why is financial literacy necessary in a person’s life?

Ans: Financial literacy is extremely important because:

(i) It helps in making correct financial decisions and contributes to achieving financial well-being.

(ii) It prevents people from making wrong economic decisions, that is, it prevents financial mistakes.

(iii) It makes one aware and cautious against financial fraud, manipulative tactics, and deceit.

(iv) It helps in preparing for future financial hazards or emergencies through savings and investment.

4. What is the SMART financial goal-setting framework? Discuss in detail.

Ans: SMART is a goal-setting framework that helps an individual achieve their financial goals.

Its meaning is:

(i) S – Specific: Financial goals should be clear and explicit.

(ii) M – Measurable: Goals must be measurable so that progress can be tracked.

(iii) A – Achievable: Goals should be reasonable and within the individual’s income and capacity.

(iv) R – Realistic: Goals must be realistic and related to the purpose of the individual’s life.

(v) T – Time-bound (or Timely): There should be a clear timeframe or target date for fulfilling the goal.

5. What are the main stages of Financial Planning?

Ans: The main stages of an effective financial plan are:

(a) Determining the current financial situation (accounting for income, expenses, assets, etc.).

(b) Identifying and setting financial goals (short-term, medium-term, long-term).

(c) Identifying suitable investment avenues (keeping in mind safety, liquidity, and return).

(d) Implementing the financial plan (preparing a budget).

(e) Reviewing the financial plan (modifying the plan according to time and circumstances).