Money, Savings and Investments Book Back Questions 8th Social Science Lesson 24

8th Social Science Lesson 24

24] Money, Savings and Investments

Book Back Questions with Answer and Do You Know Box Content

Do You Know?

History of Metallic Money: The precious metals especially gold, silver, bronze was used for metallic money. The standard weight and fineness of metal particularly gold and silver with a seal on it became medium of exchange. They were of different denomination easily divisible, portable and were convenient in making payment. King Midas of Lydia innovated metal coin in the 8^th century BC (BCE) by the ancient historian Herodotus. But gold coins were in use in India many centuries than in Lydia. The earliest issuers of coins in the world are the ancient Indians along with Chinese and lydians from the Middle East. The first time Indian coins were minted in the 6^th Century BC (BCE) by the Mahajanpadas known as Puranas, Karshapanas or Panas. The Mauryas came up with the Punch Marked Coins minting of silver, gold copper or lead and Indo-Greek Kushan kings introduced the Greek custom of engraving portraits on the coins. Turkish sultans of Delhi have replaced the royal designs of Indian Kings with Islamic Calligraphy by the 12^th Century AD (CE) . The currency was made up of gold, silver and copper known as Tanka and lower valued coin known as Jittals.

The Mugual Empire from 1526 AD (CE) consolidate the monetary system for the entire empire. In this era evolution of rupee occurred with Sher Shah Suri defeated Humayun and issued a silver coin of 178 gms known as rupiya and was divided into 40 copper pieces or paisa and during the whole Mugual period silver coin remained in use. During the British East India company i.e.1600, the mughal currency remained popular but in 1717 AD (CE) , Farrukhsiyar the Mughal Emperor gave permission to the Britishes to coin Mughal Money at the Bombay mint. The British gold coins were termed as Carolina, the silver coins as Angelina, the copper coins as cupperoon and the tin coins as tinny.

Symbol of Rupee: The Indian Rupee symbol designed by Mr. Udayakumar, Villupuram Dist Tamil Nadu. It was approved by the Government of India on 15 July 2010.

Inflation and Deflation: Inflation refers to the prices are rising, the value of money will fall. Deflation refers to the prices are falling, the value of money will rise.

Demonetization: In India, on 8-November-2016, the Government of India announced demonetization of all ₹500 and ₹1000 bank notes against Black Money.

Choose the best answers:

1. Which metals were used for metallic money?

(a) Gold

(b) Silver

(c) Bronze

(d) All the above

2. Who designed the symbol (₹) of Indian rupee?

(a) Udayakumar

(b) Amartya sen

(c) Abijith Banerjee

(d) None of these

3. The value of money is

(a) Internal value of money

(b) External value of money

(c) Both a & b

(d) None of these

4. Which is the Bank Money?

(a) Cheque

(b) Draft

(c) Credit and Debit cards

(d) All the above

5. Pick out the incorrect one: Investment can be made in different vehicle.

(a) Stock

(b) Bonds

(c) Mutual fund

(d) Pay tax

6. Among the following who are responsible for Black Money?

(a) Tax evaders

(b) Hoaders

(c) Smugglers

(d) All of the above

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.

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

Find out the wrong pair:

1. Recent forms of money transactions are

(a) Credit Card

(b) Barter system

(c) Debit card

(d) Online banking

2. Effects of black money on economy is

(a) Dual economy

(b) Undermining equity

(c) No effects on production

(d) Lavish consumption spending

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

Answers:

Choose the best answers:

1. All the above 2. Udayakumar 3. Both a & b 4. Cheque 5. Pay tax 6. All of the above

Fill in the blanks:

1. Net banking 2. Money 3. German 4. The purchasing power 5. 1949

Match the following:

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

Find out the wrong pair:

1.Barter system

2.Dual economy

Consider the statements given below and choose the correct option:

1.I, III and IV is correct