Page 1 - LN
P. 1

SAI INTERNATIONAL SCHOOL, BHUBANESWAR.
                                        Class X: SOCIAL STUDIES – ECONOMICS

                                CHAPTER - 3- MONEY AND CREDIT  (PAGE NO. 40-41)
                                                      LESSON NOTES


               NOTES-

               MODERN FORMS OF MONEY

               INTRODUCTION –
                       Before the introduction of coins, a variety of objects was used as money.  For
                       example, since the very early ages, Indians used grains and cattle as money.
                       Thereafter came the use of metallic coins- gold, silver, copper coins- a phase
                       which continued well into the last century.

               CURRENCY
               1.      Modern forms of money include currency- paper notes and coins.
               2.      It is accepted as a medium of exchange because the currency is authorized by
                       the government of the country.
               3.      In India, the Reserve Bank of India issues currency notes on behalf of the central
                       government.
               4.      As per Indian law, no other individual or organization is allowed to issue
                       currency. Moreover, the law legalizes the use of rupee as a medium of payment
                       that cannot be refused in settling transactions in India.

               DEPOSITS WITH BANKS
               1.      Workers who receive their salaries at the end of each month have extra cash at
                       the beginning of the month.  What do people do with this extra cash?  They
                       deposit it with the bank by opening a bank account in their name.
               2.      The deposits in the bank accounts can be withdrawn on demand; these deposits
                       are called demand deposits.
               3.      You would have heard of payments being made by cheques, the payer who has
                       an account with the bank, makes out an account with the bank, makes out a
                       cheque for a specific amount.  A cheque is paper instructing the bank to pay a
                       specific amount from the person’s account to the person in whose name the
                       cheque has been issued.
   1