Samacheer Kalvi 8th Social Science Guide Economics Chapter 1 Money, Savings and Investments

Tamilnadu State Board New Syllabus Samacheer Kalvi 8th Social Science Guide Pdf Economics Chapter 1 Money, Savings and Investments Text Book Back Questions and Answers, Important Questions, Notes.

Tamilnadu Samacheer Kalvi 8th Social Science Solutions Economics Chapter 1 Money, Savings and Investments

Samacheer Kalvi 8th Social Science Money, Savings and Investments Text Book Back Questions and Answers

I. Choose the Correct Answer.
1. Which metals were used for metallic money?
a) gold
b) silver
c) bronze
d) all the above
Answer:
d) all the above

2. Who designed the symbol (₹) of Indian rupee?
a) Udayakumar
b) Amartya Sen
c) Abijith Baneijee
d) None of these
Answer:
a) Udayakumar

3. The value of money is
a) Internal value of money
b) External value of money
c) Botha&b
d) None of these
Answer:
c) Both a &b

4. Which is the Bank Money?
a) Cheque
b) Draft
c) Credit and Debit cards
d) All the above
Answer:
d) AH 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
Answer:
a) stock

6. Among the following who are responsible for Black Money?
a) Tax evaders
b) Hoaders
c) Smugglers
d) All of the above
Answer:
d) AH of the above

II. Fill in the blanks.

1. Online Banking is also known as …….
Answer:
Internet banking 2 is what money does.

2. ………………. is what money does.
Answer:
Money

3. Electronic banking is also known as
Answer:
NEFT

4. Credit cards and Debit cards are Money.
Answer:
Plastic

5. In the year Reserve Bank of India was established.
Answer:
1935

III. Match the Following.

1. Barter system	a) tax evaders
2. Reserve Bank act	b) Electronic Money
3. E. Money	c) Consumer’s disposable income
4. Savings	d) Exchanged goods for goods
5. Black money	e)1935

Answer:

1. Barter system	d) Exchanged goods for goods
2. Reserve Bank act	e) 1935
3. E. Money	b) Electronic Money
4. Savings	c) Consumer’s disposable income
5. Black money	a) tax evaders

IV. Write the One Word Answer.
1. The word Money is derived from?
Answer:
The word Money is derived from the Roman word “Moneta Juno”

2. Who Prints and issues paper currencies in India?
Answer:
The Reserve Bank of India.

V. Choose the Correct Statement:

1. Barter system had many deficiencies 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:
c) I, III and IV is correct

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:
b) Barter System

2. Effects of black money on the economy is
a) Dual economy
b) Undermining equity
c) No effects on production
d) lavish consumption spending
Answer:
c) No effects on production

VII. Write Short Answer:

1. What is the Barter System?

The barter system is exchanging goods for goods without the use of money in the primitive stage.
It is an old method of exchange.

2. What are the recent forms of money?

ATM,
Bank,
Online Banking
Mobile Banking

3. Short note on E-Banking and E-Money.
Answer:
E-Money: Electronic Money is money which exists in banking computer systems and is available for transactions through an electronic system.

E-Banking: Electronic banking, also known as National Electronic Funds Transfer (NEFT), is simply the use of electronic means to transfer funds directly from one account to another rather than by cheque or cash.

4. What are the essentials of Money in your life?
Answer:

Money is a fundamental need of human beings.
Money is useful to us to pay for tuition, travel, and communication, to have fun and to buy hundred of different things.
It also used for transactions, to store wealth etc.

5. What is the Value of Money?
Answer:
The value of money is the purchasing power of money over goods and services in a country.

6. What is Savings and Investment?
Answer:

Savings represent the part of a person’s income which not used for current consumption rather kept aside for future use.
Investment refers to the process of investment fund in a Capital asset with the view to generate returns.

7. What is meant by Black Money?
Answer:

Savings represents that part of the person’s income which is not used for consumption
Investment refers to the process of investing funds in a capital asset, with a view to generating returns

8. What are the effects of black money on the economy?
Answer:
Effects of Black money on Economy are:

Dual economy.
undermining equality.
Effect on production.
Distribution of scarce resource

VIII. Write Brief Answer.

1. What are the disadvantages of the barter system?
Answer:

Lack of double coincidence of wants,
Common measure of value
Indivisibility of commodities
Difficulties of storing wealth

2. Write about the evolution of Money?
Answer:

The word Money is dervied from Roman word “Moneta Juno”.
It is the roman godesses and the republic money of roman empire.
The Indian Rupee is derived from Sanskrit word ‘Rupya’ which means silver coins.
Today we use paper notes, coins as money.
But evolution of this stage has not happened overnight.
It took thousands of year to reach such a stage.
There are many stages of evolution of money. The earliest and primitive stage is the Barter system.

3. What are the functions of Money? and explain it.
Answer:
Functions of money are classified into Primary or Main function, Secondary function, and Contingent function.

Primary or main functions:
The important functions of money performed in the very economy are classified under main functions:

1. Medium of exchange or means of payment – Money is used to buy goods and services.

2. Measure of value – All the values are expressed in terms of money it is easier to determine the rate of exchange between various type of goods and services.

Secondary functions:
The three important of secondary functions are
1. Standard of deferred payment – Money helps the future payments too. A borrower borrowing today places himself under an obligation to pay a specified sum of money on some specified future date.

2. Store of value or store of purchasing power – Savings were discouraged under barter system as some commodities are perishable. The introduction of money has helped to save it for future as it is not perishable.

3. Transfer of value or transfer of purchasing power – Money makes the exchange of goods to distant places as well as abroad possible. It was therefore felt necessary to transfer purchasing power from one place to another.

Contingent functions:

Basis of credit
Increase the productivity of capital
Measurement and Distribution of National Income

4. Explain the types of Bank Deposits.
Answer:
1. Student Savings Account:
There are savings accounts some banks offer specifically for young people enrolled in high school or college, and they main feature more flexible terms such as lower minimum balance requirements.

2. Savings Deposits:
Savings deposits are opened by customers to save the part of their current income. The customers can withdraw their money from their accounts when they require it. The bank also gives a small amount of interest to the money in the saving deposits.

3. Current Account Deposit:
Current accounts are generally opened by business firms, traders and public authorities. The current accounts help in frequent banking transactions as they are repayable on demand.

4. Fixed Deposits:
Fixed deposits accounts are meant for investors who want their principle to be safe and yield them fixed yields. The fixed deposits are also called as Term deposit as, normally, they are fixed for specified period.

5. What is the difference between savings and investment?
Answer:

Basis for comparison	Savings	Investment
Meaning	Savings represent that part of the person’s income which is not used for consumption.	Investment refers to the process of investing funds in capital asset, with a view to generate returns.
Purpose	Savings are made to fulfill short term or urgent requirements.	Investment is made to provide returns and help in capital formation.
Risk	Low or negligible	Very high
Returns	No or Less	Comparatively high
Liquity	Highly liquid	Less liquid

6. What are the effects of black money on the economy?
Answer:
Effects of Black Money on the economy

Dual economy
Tax evasion, thereby loss of revenue to the government.
Undermining equity
Widening gap between the rich and poor
Lavish consumption spending
Distortion of production pattern
Distribution of scarce resource
Effects on production.

Samacheer Kalvi 8th Social Science Money, Savings and Investments Additional Important Questions and Answers

I. Choose the Correct Answer

1. The word rupee is derived ……………… from
a) Hindi
b) Tamil
c) Malayalam
d) Sanskrit
Answer:
Sanskrit

2. In the sultans period, the gold, silver, and copper coins were known as ………………
a) Panas
b) Karhapanas
c) Tanka
d) Tanka
Answer:
c) Tanka

3. King midas of Lydia invented metal coin in the ……………… century.
a) 5th
b) 6th
c) 7th
d) 8th
Answer:
d) 8th

4. Recent plastic money is ………………
a) Cheques
b) Bondy
c) Paper money
d) Credit card
Answer:
d) credit card

5. Metal coins inverted by ………………
a) Alexander
b) Socrates
c) Midas
d) Ashoka
Answer:
c) Midas

6. The British silver coins were termed as ………………
a) Carolina
b) Angelina
c) Cupperoon
d) tinny
Answer:
b) Angelina

7. The British silver coins were termed as ………………
a) Carolina
b) Angelina
c) Cupperoon
d) tinny
Answer:
c) Cupperoon

8. Credit money or bank money is known as ………………
a) Cheque
b) Near money
c) Plastic money
d) E. money
Answer:
a) cheque

9. Prevention of money laundering act implemented in the year ………………
a) 2002
b) 2004
c) 2006
d) 2008
Answer:
a) 2002

10. Prevention of corporation act implemented in the year ………………
a) 1988
b) 1990
c) 1992
d) 1994
Answer:
a) 1988

II. Fill in the Blanks

1. ……………… Indian coins were minted in the 6th century.
Answer:
Puranas, karshapanas, or panas

2. ……………… kings introduced the Greek custom of engraving portraits on the coins.
Answer:
Indo – Greek Kushan

3. Lower valued coins known as ……………… in sultans period.
Answer:
Jittal

4. 178 gms of silver coin were issued by ………………
Answer:
Shershah Suri

5. The meaning of rupia is ………………
Answer:
Silver coin

6. ……………… gave permission to the British to coin Mughal Money.
Answer:
Farrukhsiyarr

7. Mughal money coined at the ……………… mint.
Answer:
Bombay

8. The British gold coins were termed as ………………
Answer:
Carolina

9. The British tin coins were termed as ………………
Answer:
tinny

10. The advantage of the Barter system is not the involvement of ………………
Answer:
money

11. Exchange of goods for goods was known as ………………
Answer:
Barter Exchange

12. On the basis of storage of gold they were issued by the goldsmith.
Answer:
Receipts

13. Paper money regulated and controlled by the ……………… of the country.
Answer:
Central Bank /Reserve Bank

14. Electronic banking is also known………………
Answer:
National Electronic Funds Transfer (NEFT)

15. The Real Estate Regulation and Development Act implemented in the year ………………
Answer:
2016

III. Match the Following

1. Kushan kings	a) Punch marked coins
2. Delhi Sultans	b) Rupiya
3. Mauryas	c) Puranas
4. Shershah Suri	d) Engraving Portraits
5. Mahajana padas	e) Islamic calligraphy

Answer:

1. Kushan kings	d) Engraving Portraits
2. Delhi Sultans	e) Islamic calligraphy
3. Mauryas	a) Punch marked coins
4. Shershah Suri	b) Rupiya
5. Mahajana padas	c) Puranas

IV. Write the one-word Answer.
1. What is inflation.?
Answer:
Inflation refers to the prices are rising the value of money will fall.

2. What is Deflation?
Answer:
Deflation refers to the prices are falling, the value of money will rise.

V. Choose the Correct Statement
1. a) Dual economy
b) Tax evasion
c) Loss of revenue to government
d) Widening gap between the rich and poor
a) a correct. b) All are correct
c) a,b correct d) d correct
Answer:
b) All are correct

2. Different investment Vehicle
a) Revenue b) Bonds c) Insurance
Answer:
a) Revenue

VI. Write Short Answer:

1. Explain – Savings Deposits.
Answer:
Savings deposits are opened by customers to save part of their current income.

2. Explain – symbol of the Rupee.
Answer:

The Indian Rupee symbol (₹) designed by Mr.Udayakumar, Villupuram District Tamil Nadu.
It was approved by the Government of India on 15 July 2010.

3. What are the Benefits of Savings?
Answer:

We will be financially independent sooner.
We would not have to worry any unforeseen expenses.
In the future, we will have a financial backup in place if we lose our job.
We will be prepared if our circumstances change.

4. What are the intention to save among the students?
Answer:

Teach them about taxes and accounting.
Involve them in grown-up money decisions.
Encourage them to apply for scholarships.
Help them a budget and apply for student loans.
Teach them personal savings.
Encourage them to open a student Sanchayeka Scheme.

VII. Write Brief Answer:

1. Explain the different definitions of money.

Scitovsky states that “Money is a difficult concept to define, partly because it fulfills not one but three functions, each of them providing a criterion of moneyness those of a unit of account, a medium of exchange, and a store of value”.
Sir John Hicks, says that “Money is defined by its functions, anything is money which is used as money, “Money is what money does”.
Some economists define money in legal terms saying that “anything which state declares as money is money”.

2. What are the Laws and steps taken by India Government against Black money.
Answer:
a) Some Legislative Framework in India against to Black Money:

Prevention of money laundering act 2002.
Lokpal and Lokayukta act.
Prevention of corruption act- 1988.
The undisclosed foreign Income and Asset Bill(Imposition of Tax) 2015.
Benami transactions prohibition act 1988 amended in 2016.
The Real Estate (Regulation and Development) Act, 2016.

b) Recent steps against Black Money:

Under pressure from India and other countries, Switzerland has made key changes in its local laws governing assist foreign allegedly stashed in Swiss Banks.
Special Investigation Team appointed by the government on the directions of Supreme Court on black money.
Demonetization