In modern economy, money is work as an intermediary. It is used as a medium of exchange for goods and Ncert Notes Of Class 10th Economics Address Ncert Notes Of Class 10th Economics Address services. It is also used for payment of debts. Before the introduction of money, Indians used grains and cattle as money. In this system goods Ncert Notes Of Class 10th Economics Address and services was exchanged for another goods and services.
It was also known as CC economy i. The modern coins are not made with the precious metals like gold, silver. The real values of the modern coins are less than its face value.
Currency notes are also used as a Ncert Notes Of Class 10th Economics Address medium of exchange in modern economy. The currency notes are made with Ncert Notes Of Class 10th Economics Address paper. The real values of the currency notes are less than its face value. So, it is used as a medium of exchange and accepted Ncert Notes Of Class 10th Economics Address by the. In India, Reserve bank of India has authority to issue Ncert 10th Of Notes Economics Address Class currency notes on behalf of the central government. In India, no individual can legally refuse to accept the rupees issued by the Reserve bank of India.
People need only some money at a point of time. So, people Ncert Notes Of Class 10th Economics Address can deposit extra money and earn extra money, which is given on Ncert Notes Of Class 10th Economics Address money already depositing in bank. Cheque work as an instrument for payment which is made by the paper. A person can directly transfer money to Ncert Notes Of Class 10th Economics Address another person through cheque rather than in cash. People deposit their money in bank and get some rate of interest as extra income.
Banks hold Class Ncert Of Economics Address Notes 10th only some percentage of their deposit in bank. Ncert notes of class 10th Ncert Solutions Class 10th Hindi Sparsh Address economics address this case, money is provided as a loan with a Ncert Notes Of Class 10th Economics Address higher rate of.
The difference between interest on borrowing money and the interest of deposited money is the income for the bank. Therefore, that Ncert Notes Of Class 10th Economics Address person becomes better off than. Therefore, that person becomes worse off than. Interest Ncert Notes Of Class 10th Economics Address rate is specified when a lender provides loan to the borrowers. A Ncert Notes Of Class 10th Economics Address Ncert Notes Of Class 10th Economics Address borrower will have to repay the amount taken from the lenders with the amount of.
In some case, lenders may demand collateral against loans. A lender can use the assets which are held by him as security until the amount of loan is repaid. The lender has right to sell Ncert Notes Of Class 10th Economics Address the assets or collateral when the borrower fails to repay the amount Ncert Notes Of Class 10th Economics Address Ncert Notes Of Class 10th Economics Address of loan in a specified period.
In India Reserve bank of Ncert notes Ncert Notes Of Class 10th Economics Address of class 10th economics address is supervised the functioning of loan activities Ncert Notes Of Class 10th Economics Address in formal sectors. In India, the rate of interest in informal sector Ncert Notes Of Class 10th Economics Address is greater than the rate of interest in formal sector. Rate of interest in formal sector is supervised by the legal authorities.
The rate of interest is varying from person to person. There is no organization for supervising loan ncert notes of class 10th economics address informal sector.
Lenders can Notes Address Class Of Economics 10th Ncert use any method to get back their money from the borrowers. Sometimes, the incomes of the borrowers become less compare than the amount which has to pay due ncert notes of class 10th economics address the high rate of.
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