Samacheer Kalvi Class 8 Economics Chapter 1 Money, Savings and Investments Solutions
Welcome to NCTB Solutions. Here with this post we are going to help 8th class students by providing Solutions for Samacheer Kalvi Class 8 Economics Chapter 1 Money, Savings and Investments. Here students can easily find all the solved solution for class 8 Social Science, Economics Chapter 1, Money, Savings and Investments Exercise questions. Also here our expert Economics Teacher’s solved all the questions with easily understandable language with proper guidance so that all the students can understand easily. Here on this post students will get Chapter 1 Money, Savings and Investments exercise solutions. Here all the solutions are based on Tamil Nadu State Board latest syllabus.
Money, Savings and Investments Chapter 1 Solutions :
(I) Choose the correct answer
(1) Which metals were used for metallic money?
(a) gold
(b) silver
(c) bronze
(d) all the above
Answer :
Correct Option → (d)
Gold, Silver and Bronze were used for metallic money.
(2) Who designed the symbol (₹) of Indian rupee?
(a) Udaya kumar
(b) Amartya Sen
(c) Abijith Banerjee
(d) None of these
Answer :
Correct Option → (a)
Udaya kumar designed the symbol (₹) of Indian rupee.
(3) The value of money is
(a) Internal value of money
(b) External value of money
(c) Both a and b
(d) None of these
Answer :
Correct Option → (c)
The value of money is Internal and External value of money.
(4) bWhich is the Bank Money?
(a) Cheque
(b) Draft
(c) Credit and Debit cards
(d) All the above
Answer :
Correct Option → (d)
Cheque, Draft, Credit and Debit cards this all are the Bank Money.
(5) Pick out the incorrect one: Investment can be made in different vehicle.
(a) Stock
(b) Bonds
(c) Mutual
(d) Pay tax
Answer :
Correct Option → (d)
Here, Pay tax is the incorrect one.
(6) Among the following who are responsible for Black Money?
(a) Tax evaders
(b) Hoaders
(c) Smugglers
(d) All of the above
Answer :
Correct Option → (d)
All of the above are responsible for Black Money.
(II) Fill in the blanks
(1) Online Banking is also known as __
(2) __ is what money does.
(3) Electronic banking is also known as __
(4) Credit cards and Debit cards are __ Money.
(5) In the __ year Reserve Bank of India was established.
Answer :
(1) → Net Banking
(2) → Money
(3) → National electronic fund transfer
(4) → Plastic Money
(5) → 1935
(III) Match the following
| (1) | Barter system | tax evaders |
| (2) | Reserve Bank act | Electronic Money |
| (3) | E- Money | Consumer’s disposable income |
| (4) | Savings | exchanged goods for goods |
| (5) | Black money | 1935 |
Answer :
(1) Barter system → exchanged goods for goods
(2) Reserve Bank act → 1935
(3) E- Money → Electronic Money
(4) Savings → Consumer’s disposable income
(5) Black money → tax evaders
(IV) Write the one word answer
(1) The word Money is derived from?
Answer :
The word money is derived from Roman word Moneta Juno.
(2) Who Prints and issues paper currencies in India?
Answer :
RBI prints and issues paper currencies in India.
(V) Choose the correct statement
(1) Barter system had many deficiency 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 :
Correct Option → (c)
Correct statements are :
(I) Lack of double coincidence of wants.
(III) Common measure of value.
(IV) Indivisibility of commodities.
(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 :
Here the odd one is → 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 :
From the above the odd one is – No effects on production.
(VII) Write short answer
(1) What is the Barter System?
Answer :
Barter system is exchanging goods for goods without the use of money in the primitive stage. At that lime there was no circulation of currency and the practice of exchanging goods for goods was going on.
(2) What are the recent forms of money?
Answer :
The recent of money are ATM, BANK, ONLINE and mobile banking.
(3) Short note on E-Banking and E-Money.
Answer :
E-banking : The full form of E-banking is electronic banking. It’s also known as NEFT which mean is national electronic funds transfer. Money can be transferred from one account to another without use of any check. This is an important factor in money transactions at the present time.
E-money : The full form of e-money is electronic money. Electronic money is exist only an computer bank. And in this case money transactions are done only with the help of computer.
(4) What are the essential of Money in your life?
Answer :
The essential of money in your life : At present money is an important issue for us. In the past we were able to meet-our needs through the exchange system. But with the passage of time that trend has changed with the advent of trade and commerce, the type of money has change. Money is a thing without which we fail to meet our daily needs money is needed in all section a food, housing, industry health and education.
(5) What is the Value of Money?
Answer :
There are two types of value of money.
(1) International value of money which is refers to the purchasing power of money over domestic goods on services and the other is
(2) External value of money which refers to the purchasing power of money over foreign goods and services.
(6) What is Savings and Investment?
Answer :
Savings : The word saving of human life has many roles. Anyone who wants to be financially strong must save the healthy environment around can change at any moment. We should think about that moment of danger and we should save.
Investment : The word investment means to invest in something. Investment is a way for you which may make profit in future. It could be anything. Money, time, efforts or other resources. It has a productive nature. Which helps us to the economic growth of our country.
(7) What is meant by Black Money?
Answer :
Big traders show partial profits from their business. They hide their profits by evading taxes. All the money earned through customs evasion is known as black money. The black money is accumulated by the criminal, smugglers, hoarders, tax evaders.
(8) What are the effects of black money on economy?
Answer :
Effects of Black Money on economy :
(i) Loss of Government.
(ii) Undermining equality.
(iii) Widening gape between rich and poor.
(iv) Lavish consumption spending.
(v) Distortion of production pattern.
(vi) Distribution of scarce resource.
(vii) Effects on production.
(VIII) Write Brief answer
(1) What are the disadvantages of barter system?
Answer :
Disadvantage of Barter system :
(1) Lack of double coincidence of wants.
(2) Common measure of value.
(3) Indivisibility of commodities.
(4) Difficulties of storing wealth.
(2) Write about the evolution of Money.
Answer :
• Evolution of money : Money has changed over time with. And that is called evolution of money. Money has evolved through different stages and they are like.
• Commodity money : Which means such exchange of goods for goods.
• Metallic Money : Which means the money which is made by metal like gold, silver, copper etc.
• Paper Money : Which is regulated and controlled by the central bank of country. Which is issued by RBI.
• Bank money : Which is the cheque itself is not money but it performs the same as functions of money.
• Near Money : is the use of bills of exchange, treasury bills, bonds, debentures saving certificate etc.
• Plastic money : is clash less transaction like credit card and debit cards.
• E-money : is transaction through electronic system.
• Online banking : is financial transactions through website.
• E-banking : is transfer funds directly from one account to another rather than by cheque or cash.
(3) What are the functions of Money? and explain it.
Answer :
Functions of money : There are mainly two different functions of money they are Primary and secondary.
- Primary :
(i) Money is used to buy goods and services.
(ii) Measure of value.
- Secondary :
(i) Money helps in future payments.
(ii) Money helps to save commodities.
(iii) Transfer of value or transfer of purchasing power.
(4) Explain the types of bank Deposits.
Answer :
• Bank deposits : There are generally four types of deposits like –
• Savings deposits : Open account with current income customer can withdraw money. The bank also give small amount of interest.
• Current account deposits : Current account are generally used for business purpose. Its transaction mode is repayable on demand.
• Student savings account : In this case the accounts students are opened with the help of gyro balance.
• Fixed deposits : In this case money kept with the bank for a fixed period on time.
(5) What are the difference between savings and investment?
Answer :
| Basis of comparison | Savings | Investment |
| Meaning | Part of the persons income which is not used for consumption | Its refers to the process of investing funds in capital asset |
| Purpose | Short term urgent requirements | It’s made of provide returns and help in capital formation |
| Risk | Low | Very |
| Returns | No or Less | Comparatively high |
| Liquity | Highly liquid | Less liquid |
(6) What are the effects of black money on economy?
Answer :
Effects of Black Money on economy :
(i) Loss of Government.
(ii) Undermining equality.
(iii) Widening gape between rich and poor.
(iv) Lavish consumption spending.
(v) Distortion of production pattern.
(vi) Distribution of scarce resource.
(vii) Effects on production.
Next Chapter Solution :
👉 Public and Private Sectors
