SEBA Class 10 Political Science and Economics Chapter 1 Financial Literacy

SEBA Class 10 Political Science and Economics Chapter 1 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 10 Political Science and Economics Chapter 1 Financial Literacy Notes and select need one. SEBA Class 10 Political Science and Economics Solutions English Medium Download PDF. SEBA Class 10 Social Science (Part – 3 Economics) Notes in English.

SEBA Class 10 Political Science and Economics Chapter 1 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. SEBA Class 10 Political Science and Economics Part – 3 (Economics) Notes are part of All Subject Solutions. Here we have given SEBA Class 10th Political Science and Economics Solutions in English for All Chapters, You can practice these here.

Financial Literacy

Chapter: 1

PART – III: ECONOMICS

EXERCISE

Very Short Answer Type Questions:

1. What is a Bank?

Ans: A bank is a financial institution that provides loans to people seeking money and accepts deposits from people who want to save.

2. What is a Debit Card?

Ans: A debit card is a plastic card provided by a bank to its customers, through which the customer can withdraw money from their bank account or make electronic payments to purchase goods and services.

3. When was the Reserve Bank of India established?

Ans: The Reserve Bank of India was established on 1st April 1935.

4. Give an example of UPI.

Ans: Examples of UPI apps are: Paytm, PhonePe, Google Pay, BHIM, etc.

5. What is a Current Deposit?

Ans: A current deposit is a type of saving where the customer can withdraw their savings at any time through a cheque.

6. Mention a Financial Instrument.

Ans: A financial instrument is a Share or a Bond.

7. What is the other name for the Primary Market?

Ans: The other name for the primary market is the New Issues Market (NIM).

8. When was SEBI established?

Ans: The Securities and Exchange Board of India (SEBI) was established in 1992.

9. What is a Systematic Investment Plan (SIP)?

Ans: SIP is a method of investing in mutual funds where the investor can invest a fixed amount of money regularly (e.g., monthly) instead of investing a large amount of money at once.

10. Mention a precaution to protect against Cyber Fraud.

Ans: A precaution to protect against cyber fraud is to use strong passwords that cannot be easily guessed by others.

Short Answer Type Questions:

1. What are the functions of Regional Rural Banks?

Ans: The main functions of Regional Rural Banks are:

(i) Accepting savings from people in rural areas.

(ii) Providing loans to small and marginal farmers, agricultural labourers, small businessmen, etc., in villages.

2. How can money transfer be done using Internet Banking?

Ans: Using internet banking, money can be transferred from home via a mobile phone or computer. For this, primarily three methods are used: NEFT (any amount of money can be sent), RTGS (for sending large amounts of money instantly), and IMPS (instant money transfer through a mobile phone).

3. Mention the different types of Banking Cards.

Ans: Banking cards are primarily of two types:

(i) Debit Card: Through which a customer can use the money deposited in their account.

(ii) Credit Card: Through which a customer can take a loan from the bank up to a certain limit to purchase goods and must repay it later along with interest.

4. How do Non-Banking Financial Institutions differ from banks?

Ans: Non-Banking Financial Institutions provide loans or are involved in investments like banks, but unlike banks, they cannot accept deposits or savings from customers through cheques.

5. What is Unified Payments Interface (UPI) and what are its main features?

Ans: UPI is a simple digital payment method through which money can be exchanged instantly between two bank accounts using a mobile phone app.

Its features are:

(i) Cashless payments are very easy and secure.

(ii) Money can be sent directly to a bank account using a UPI ID or QR Code.

(iii) It follows the two-factor authentication rule, which secures the transaction.

6. What are the components of the Financial Market?

Ans: The two main components of the financial market are the Money Market and the Capital Market.

The Capital Market can be further divided into two parts: the Primary Market and the Secondary Market.

7. What are Bonds?

Ans: A bond is a debt instrument issued by a government or a company to raise funds from the market. People who invest in bonds are given a guaranteed promise that their money will be returned at the end of a specific period (Maturity Date), and they are paid interest at a regular rate.

8. Mention the precautions to be taken while making financial decisions.

Ans: The following precautions should be taken while making financial decisions:

(i) One should never borrow money to invest.

(ii) One should spend or borrow only according to one’s income and capacity.

(iii) One should not invest hastily in any financial instrument in the hope of high profits; thorough research should be done.

(iv) The guidelines of RBI and SEBI should always be followed.

9. What are the types of Cyber Frauds?

Ans: The types of cyber frauds are:

(i) Online banking and credit card fraud.

(ii) Investment Scams.

(iii) Phishing – stealing information by sending fake e-mails or links.

(iv) Identity Theft.

(v) Ransomware (demand for ransom).

10. Write a short note on the Origin of Banks.

Ans: There is a difference of opinion among economists regarding the origin of banks. According to some, the word ‘bank’ comes from the Italian word ‘Monte’, which means accumulated wealth. According to others, it comes from the German word ‘Banck’. This word became banco in Italy, banke in French, and bank in England.