8th Standard Social Science - Economics - Money, Savings and Investment
Social Science Economics Notes
I. Choose the Correct Answer
1. Which metals were used for metallic money?
(a) Gold
(b) Silver
(c) Bronze
(d) All the above
Answer: (d) All the above
(b) Silver
(c) Bronze
(d) All the above
Answer: (d) All the above
2. Who designed the symbol (₹) of Indian Rupee?
(a) Udayakumar
(b) Amartya Sen
(c) Abijith Banerjee
(d) None of these
Answer: (a) Udayakumar
(b) Amartya Sen
(c) Abijith Banerjee
(d) None of these
Answer: (a) Udayakumar
3. The value of money is
(a) Internal value of money
(b) External value of money
(c) Both a & b
(d) None of these
Answer: (c) Both a & b
(b) External value of money
(c) Both a & b
(d) None of these
Answer: (c) Both a & b
4. Which is the Bank Money?
(a) Cheque
(b) Draft
(c) Credit and Debit Cards
(d) All the above
Answer: (a) Cheque
(b) Draft
(c) Credit and Debit Cards
(d) All the above
Answer: (a) Cheque
5. Pick out the incorrect one.
(a) Stock
(b) Bonds
(c) Mutual Fund
(d) Pay Tax
Answer: (d) Pay Tax
(b) Bonds
(c) Mutual Fund
(d) Pay Tax
Answer: (d) Pay Tax
6. Among the following who are responsible for Black Money?
(a) Tax Evaders
(b) Hoarders
(c) Smugglers
(d) All of the Above
Answer: (d) All of the Above
(b) Hoarders
(c) Smugglers
(d) All of the Above
Answer: (d) All of the Above
II. Fill in the Blanks
1. Online Banking is also known as Net Banking.
2. Money is what money does.
3. Electronic Banking is also known as National Electronic Funds Transfer (NEFT).
4. Credit cards and Debit cards are Plastic money.
5. Reserve Bank of India was established in 1935.
2. Money is what money does.
3. Electronic Banking is also known as National Electronic Funds Transfer (NEFT).
4. Credit cards and Debit cards are Plastic money.
5. Reserve Bank of India was established in 1935.
III. Match the Following
| Column A | Column B |
|---|---|
| Barter System | Exchanged Goods for Goods |
| Reserve Bank Act | 1935 |
| E-Money | Electronic Money |
| Savings | Consumer's Disposable Income |
| Black Money | Tax Evaders |
IV. Write the One Word Answer
1. The word Money is derived from?
The Roman word "Moneta Juno".
2. Who prints and issues paper currencies in India?
Reserve Bank of India (RBI).
V. Choose the Correct Statement
1. Barter system had many deficiencies like
I. Lack of double coincidence of wants
II. No difficulties of storing wealth
III. Common measure of value
IV. Indivisibility of commodities
(a) I and II is correct
(b) I and IV is correct
(c) I, III and IV is correct
(d) All are correct
Answer: (c) I, III and IV is correct
II. No difficulties of storing wealth
III. Common measure of value
IV. Indivisibility of commodities
(a) I and II is correct
(b) I and IV is correct
(c) I, III and IV is correct
(d) All are correct
Answer: (c) I, III and IV is correct
VI. Find Out the Odd One
1. Recent forms of money transactions are
(a) Credit Card
(b) Barter System
(c) Debit Card
(d) Online Banking
Answer: (b) Barter System
(b) Barter System
(c) Debit Card
(d) Online Banking
Answer: (b) Barter System
2. Effects of Black Money on economy is
(a) Dual Economy
(b) Undermining Equity
(c) No Effects on Production
(d) Lavish Consumption Spending
Answer: (c) No Effects on Production
(b) Undermining Equity
(c) No Effects on Production
(d) Lavish Consumption Spending
Answer: (c) No Effects on Production
Money, Savings and Investment
Social Science - Economics Notes
VII. Write Short Answers (2 Marks)
1. What is the Barter System?
- Exchange of goods for goods.
- No money is used.
- Used in ancient times.
2. What are the recent forms of money?
- Plastic Money.
- Electronic Money (E-Money).
3. Short note on E-Banking and E-Money.
E-Banking
- Transfers money through electronic systems.
- No need for cash.
- Uses NEFT and online banking.
E-Money
- Exists in computer systems.
- Used for electronic transactions.
- Enables quick payments.
4. What is the Value of Money?
- Purchasing power of money.
- Measures buying capacity.
- Depends on prices.
5. What is Savings and Investment?
Savings
- Income not spent on consumption.
- Kept for future needs.
Investment
- Money invested in assets.
- Earns future returns.
6. What is meant by Black Money?
- Unaccounted and illegal income.
- Not reported to authorities.
- Avoids tax payments.
7. What are the effects of Black Money?
- Creates dual economy.
- Causes tax revenue loss.
- Increases rich-poor gap.
VIII. Write Brief Answers (5 Marks)
1. What are the disadvantages of Barter System?
- No double coincidence of wants.
- No common value measure.
- Goods cannot be divided easily.
- Difficult to store wealth.
- Trade becomes inconvenient.
- Exchange takes more time.
2. Write about the Evolution of Money.
- Commodity money used first.
- Metallic money replaced commodities.
- Paper money became popular.
- Banks introduced credit money.
- Cheques eased transactions.
- Near money developed later.
3. What are the functions of Money?
Primary Functions
- Medium of exchange.
- Measure of value.
Secondary Functions
- Standard of deferred payments.
- Store of purchasing power.
- Transfer of value easily.
Contingent Functions
- Basis of credit creation.
- Increases capital productivity.
- Measures national income.
4. Explain the types of Bank Deposits.
- Student accounts for young learners.
- Savings deposits earn interest.
- Current accounts for businesses.
- Allows frequent transactions.
- Fixed deposits give steady returns.
- Fixed period ensures safety.
