1. Prepare a project on the topic – ‘Money and Credit’
It should include –
a) Modern and Traditional form of money
b) Difference between Formal and Informal source of credit
c) Case study of a self-help group
d) Role of a bank, etc.
Answers
Answered by
12
Modern sources of money include bank loans and paper money.
The traditional form of money includes copper and silver coins. In the olden days, the barter system was mostly used.
Formal sources include those which are registered under the government and charge the lower rate of interests.
Their main motive is social welfare.
Informal sources include those that are small and scattered units and are hence outside the control of the government, no organization supervises the credit activities.
This charge a higher rate of interest.
The traditional form of money includes copper and silver coins. In the olden days, the barter system was mostly used.
Formal sources include those which are registered under the government and charge the lower rate of interests.
Their main motive is social welfare.
Informal sources include those that are small and scattered units and are hence outside the control of the government, no organization supervises the credit activities.
This charge a higher rate of interest.
Answered by
6
Money is the basic factor when it comes to exchange of goods and services. Credit is the purchasing of goods only that payments are made later after a while. Modern traditional form of money is the use of modern currency of particular country to complete a transaction.Traditional forms of money were the use of barter trade for exchange of goods and services.
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