Maharashtra State Board Class 11 Economics Solutions Chapter 2 Money
1. Complete the correlation:
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Secondary function of money
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Contingent function of money
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Plastic money
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Portability
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Money
2. Give economic terms:
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Barter System
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Deferred payment
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Digital system
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Cheque/Demand Draft
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E-money
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Black money
3. Choose the correct option:
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2) b, d, a, c
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4) c, d, a, b
4. Identify and explain the concepts from the given illustrations:
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Barter System. The barter system refers to the exchange of goods against goods. In the above case, it is a barter exchange as Vasantsheth exchanges coal against food grains.
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Bank Money. Bank money or credit money refers to cash deposits saved by people. It can be withdrawn or transferred or demanded by means of cheque, draft, etc. In the above case, it is bank money, because Mr. Babanrao deposits his cash into the bank as deposits.
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Plastic Money. Plastic money is optional money in the form of Debit cards and Credit cards. In the above case, Charu purchases a shirt with a debit card. Hence, she is using a form of Plastic money.
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Black money. Money that is received in cash but not accounted for and on which tax is not paid to Government is called Black Money. In the above case, the agent did not issue a receipt to Malathi, hence it will be a case of Black money.
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Demonetization. Demonetization is a tool to control black money in a country. A note ban is a case of demonetization.
5. State with reasons whether you agree or disagree with the following statements:
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No, I do not agree with the statement. A barter system is a process of exchange under which people exchange goods and services produced by them with goods and services produced by others. With the progress of civilization, human wants to be multiplied and the barter system of exchange became obsolete. This was because of various inherent limitations. They are as follows:
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Yes, I agree with the statement. There are many good qualities found in a modern currency like:
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Yes, I do agree with the statement. Money performs a number of functions in today’s economy. They are as follows:
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Yes, I do agree with the statement.
6. Answer the following questions on the basis of the following information:
Ganesh travelled to the mall by bus. He gave the conductor ₹ 10 coins for the ticket. He purchased many commodities from the mall. At the billing counter, he gave his credit card for payment but the billing clerk informed him that only debit cards were accepted. Since Ganesh had forgotten his debit card at home, he offered to make payment by cash.
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Types of money used in the above information are:
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(a) Paper money: It is a substitute for metallic money. It consists of paper currency which is issued by the Central Bank of the country. Currency notes of higher denominations are issued by the Central Bank i.e. Reserve Bank of India.
(b) Bank money: It is also called Credit money. It refers to deposits that are in the form of cash saved by the people. Such money can be withdrawn or transferred with the help of instruments like cheques, drafts, etc.
Class 11 Economics Chapter 2 Money Intext Questions and Answers
Find out: [Textbook Page No. 11]
Recent changes introduced by the banks for the safe use of plastic money.
Answer:
Various changes and instructions are given by the banks for the safe use of plastic money:
You Should Know: [Textbook Page No. 11]
Explain the terms legal tender money and non-legal tender money.
Answer:
(i) Legal Tender Money: It is the money that is backed by law and refusal to accept this is punishable by law. It is issued by the Central Bank of the country.
E.g.: Currency note of any denominations like ₹ 5, ₹ 10, ₹ 50, ₹ 100, ₹ 200, ₹ 500, and ₹ 2000.
(ii) Non-Legal Tender Money: It is the money that is generally used by people in final payment but there is no legal compulsion to accept (i.e. no one can force to accept it). It is issued by commercial banks.
E.g. cheques, drafts, bill of exchange, etc.
Find out: [Textbook Page No. 11]
List the various modes of digital transactions.
Answer:
Various modes of digital transactions are Debit cards, Credit cards, Mobile wallets, Internet banking, Digital Payment App (Google pay, Paytm, etc), UPI (United Payments Interface), Mobile Banking, Bank prepaid card, etc.