Assam SCERT Class 8 Geography and Economics Chapter 11 Role of Financial Institutions and Organisations in Socio-Economic Development Question Answer Solutions
Assam SCERT Board Class 8 Geography and Economics Chapter 11 Role of Financial Institutions and Organisations in Socio-Economic Development all Question’s easy Solutions by expert teachers.
Board |
Assam SCERT |
Class |
8 |
Book |
Geography and Economics |
Topic |
Question answer |
EXERCISES-
1.) Write short answer-
a.) What does the government do for the socio-economic development of the country?
Ans.The government takes various types of programmes, schemes and projects for the socio-economic development and implements them for providing employment, price stability and sustainable growth of the nation.
b.) Name some factors of economic development.
Ans. Some factors of economic development roads, bridges, hospitals, schools, transport, communication, irrigation, drinking water, hospitals, schools, sanitation, electricity telephone etc.
c.) What are financial institutions and establishments?
Ans. Financial institutions and establishments are Bank.NABARD, Insurance Company etc.
d.) Write two important functions of a bank.
Ans. Two important functions of a bank are providing useful saving schemes, pay interest on the saving amount.
e.) What is the name of the Central Bank of India?
Ans. The name of the Central Bank of India is Reserve Bank of India.
f.) Where are the products produced with the assistance with NEDFi?
Ans.The products produced with the assistance with NEDFi are growing medicinal plants, silk industries, cottage industries, handloom industries, nursery, poultryfarming, pig farming,fish farming etc.
2.) Discuss in details-
a.) Contribution of Commercial Bank in the socio-economic development. –A large section of the banking system of India is controlled by the Commercial bank. People are able to both save and apply for loans from this bank. Commercial Bank provides long -term and short -term loan to customers from different categories like the industrialists, farmers, artisans, service holders, students etc on agreement.
b.) Role of North Eastern Council and Development Finance Corporation Limited (NEDFi) in the economic development of North -East India. -The North Eastern Council and Development Finance Corporation Limited (NEDFi) was established in 1995 to provide financial help and support to the states of North -East India. It provides facilities to small industries, cottage industries, handloom and cloth industries, Self -Help Group etc. It helps in recognizing and supporting the environment and infrastructure of various projects required for proper utilization of local resources of an area. NEDFi promotes many agriculture-based industries, promotes people of North -East India by providing financial assistance for working in different areas like agriculture, growing medicinal plant, silk industries, handloom industries, nursery, poultry farming pig farming etc. NEDFi also provides loan to people who are not able to pay back the loan taken from the bank. NEDFi help women to become self-independent through its Micro Finance Scheme.
c.) Aims and objective of Self-help groups. – The Self-help Group is self-employed unit or group formed in a voluntary manner which has around 10 to 20 members. The main aims and objective of the group is to work together to eradicate poverty of each member who are economically backward and unemployed. The Self -help groups help in opening up employment opportunities like weaving, poultry farming, flower farming, stitching etc for unemployed youths. They help in developing the practice of savings in the members of a group, bring awareness among the rural people to assist each other. The Self help group also makes correspondence with the financial institution and assist in getting loan etc.
3.) Write short notes –
a.) Cooperative Bank – The Cooperative banking system is developed to save the poor people from the clutches of the village Mahajans. The Cooperative banking system provides loan at the low interest rates to poor farmers, weavers, micro-enterprises etc for the productive work. It is in the three -fold;
a.) State cooperative banks in each state at the top level.
b.) Central Cooperative bank at the district level
c.) Agricultural cooperative societies in rural areas.
b.) NABARD –The Government of India established the Agricultural and Rural Development Bank in 1982 to develop agriculture and rural development of the country. The bank gives loans to all forms of agricultural activities and various schemes and programmes which are necessary for the rural development. These loans are small terms of 18 months and lengthy terms of 25 years. NABARD gives loans to Cooperative Bank, Land Development Bank, Regional Gramin Vikash Bank and Commercial Banks. NABARD works as a representation of Central Government in providing rural loan.
c.) Central Bank- The Central Bank is the head of all the banking systems in the country. The Reserve bank of India is our Central Bank which was established in 1935. The Central Bank only has complete authority to print paper currency. The Reserve Bank is the highest and topmost financial institutions of our country and examines the accounts of all other banks. All the State Bank of India work as an agent of the Reserve Bank.
d.) Self -help Group-The Self-help Group is self-employed unit or group formed in a voluntary manner which has around 10 to 20 members. The main aims and objective of the group is to work together to eradicate poverty of each member who are economically backward and unemployed. The Self -help groups help in opening up employment opportunities like weaving, poultry farming, flower farming, stitching etc for unemployed youths. They help in developing the practice of savings in the members of a group, bring awareness among the rural people to assist each other. Each member of the Self-help Group saves their income regularly in a general fund and also have a saving account either in any nationalized bank or in a regional bank (Gramin Vikash Bank). The Self-help group also makes correspondence with the financial institution and assist in getting loan etc.
4.) Say true or False-
a.) Increase of per capita income obstructs growth of a nation. False
b.) Industrial and Investment Bank provide long-term loan to industrial sector. True
c.) Self-help Group must open a saving account in the Central Bank. False
d.) The head office of NEDFi is in Shillong. False
e.) Economically sound people can become members of a Self-help Group. False
EXTRA QUESTIONS
1.) How many Self -help groups are there in Assam?
Ans. There are 296,983 Self-help groups in Assam till July 2021 in which 1.72 are women Self -help Groups.
2.) Write few lines about Land Mortgage Bank.
Ans. Land Mortgage Bank provides long term to farmers when they deposit all original documents of their properties to bank on conditions and take loans. Farmers can avail up to 50 percent of the land value as loan which they can return in around 20 to 30 years. The interest rates are very low and farmers benefit from this scheme and they are able to focus on manufacturing.
3.) What is the important role of Industrial and Investment Bank?
Ans. The important role of Industrial and Investment Bank is to provide long term loans to industrial sectors for purchasing machines, tools, nuts and bolts and to establish factories. This banking system was established in 1985 to promote and provide industrial development.
4.) How many banks were nationalized by the government of India?
Ans. The Government of India nationalized 14 commercial banks in 1969 and 6 commercial banks in 1980for economic development through banks.
5.) What took place on 1st April 2020 in the field of banking services?
Ans. On 1st April,2020, the Bank Merger Initiative was effective and the number of nationalized banksin our country counted to 12. State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB) are some examples of Nationalized banks.
6.) What do we understand by Commercial Bank?
Ans. Commercial Bank manages a large section of the banking system of India. People can save their money and apply for loans. The savings collected by the bank can be divided into four parts: a. Savings Deposit b. Current Deposit c. Fixed Term Deposit d. Recurring Deposit. Commercial banks provide both short- and long-term loans to their customers who are industrialists, farmers, artisans, service holders students etc.
7.) Why do we need financial transactions?
Ans. Financial transactions are type of agreement between the buyer and the seller regarding the buying and selling of goods, services, assets.
8.) Define the term “Bank”.
Ans. Bank is the most essential and important financial institution of all the government and private institutions which is established for the social and economic development of the country.
9.) What is a loan? Who is a depositor?
Ans Borrowed money from an individual or banking institution by another individual or institute or agency is known as Loan.
10.) What is a financial system?
Ans. Financial system is a system which transfers money from surplus group to the deficit group. It can be divided into Financial institutions, Financial assets, Financial market and Financial services.
Also See: Previous Chapter No. 10 Question Answer