Bihar Board Class 10 · Social Science · Matric exam 2027
Chapter 3: Money, Savings and Credit — notes
The chapter’s 7 parts in the book’s order — the first idea of each and the points Medha Ma’am writes on the board — and the summary at the end. The full lesson and a check question for each part are in the app.
1. Barter System and its Difficulties
Okay, so, long ago, people did not have money.
- • Barter = goods exchanged for goods, no money
- • Problem 1: Lack of double coincidence of wants
- • Problem 2: Lack of common measure of value
- • Problem 3: Lack of store of value (perishable goods)
- • Problem 4: Lack of divisibility (cannot divide a cow)
- • Problem 5 & 6: Future payment & transfer of value
2. Monetary System and Development of Money
Okay, so — barter caused a lot of problems, right?
- • Monetary system: sell goods for money, then buy
- • Development of Money:
- • 1. Barter 2. Commodity Money
- • 3. Metallic Money 4. Coins
- • 5. Paper Money 6. Credit Money
- • Plastic money: ATM-cum-debit card, Credit card
3. Functions of Money
Okay, so let's talk about money.
- • Money is a matter of functions four:
- • 1. Medium of exchange
- • 2. Measure of value
- • 3. Standard of deferred payment
- • 4. Store of value
- • Also: Transfer of purchasing power, Basis of credit
4. What is Money and its Advantages
Okay, so economists define money in different ways.
- • Hartley Withers: 'Money is what money does'
- • Money = generally accepted medium of exchange,
- • measure, store, transfer of value
- • Advantages: consumers, production, basis of credit
- • removes barter difficulty, liquidity & mobility
- • 'Money is a good servant'
5. What is Saving?
Okay, so let's think about all the income earned in a society.
- • Current goods: used immediately
- • Durable goods: used in production
- • Consumption = spent on current goods
- • Saving = Income − Consumption
- • Saving: (i) in cash (ii) in goods = Investment
- • S = I
6. Credit and its Basis
Okay, so — what does credit really mean?
- • Credit = faith in ability to repay debt
- • Two sides: Creditor and Debtor
- • Basis of credit - Four C's:
- • 1. Confidence 2. Character
- • 3. Capacity to repay 4. Capital
- • Period of loan also matters
7. Credit Papers
Okay, so let's talk about credit papers.
- • Credit paper = resources used as credit money
- • Money = legal tender; Credit paper = not legal tender
- • Types: Cheque, Bank draft, Hundi, Promissory note
- • Cheque: written order to bank to pay payee
- • Bank draft: order from one branch/bank to another
- • Traveler's cheque: fixed amount, own signature
Summary
Okay, so let's go back over everything we covered in this chapter. We started with the barter system, and we saw its troubles — no double coincidence of wants, no common measure of value, and trouble storing or dividing goods. These troubles are what led to the invention of money. From there, we traced how money developed — barter, then commodity money, then metallic money, then coins, then paper money, then credit money, and today, plastic money like ATM-cum-debit cards and credit cards. We also learned the four functions of money — medium of exchange, measure of value, standard of deferred payment, and store of value. Money also transfers purchasing power, and it's the basis of credit. Then we looked at the meaning and advantages of money, and after that, saving. Saving is the difference between income and consumption — Saving = Income − Consumption. And saving equals investment, S = I. Finally, we came to credit — faith in a person's ability to repay. This rests on four C's — Confidence, Character, Capacity and Capital. We ended with the credit papers — cheque, bank draft, traveler's cheque and promissory note. So, tell me — out of all these, which one function of money do you use the most in your own daily life?
AskMedha · Medha Ma’am — Bihar Board Class 10 Social Science, Chapter 3. Written from the textbook, checked twice.
Questions parents and students ask
- How do I get the "Money, Savings and Credit" notes as a PDF?
- Press "Save as PDF" — the phone’s print sheet opens; choose "Save as PDF" there. The PDF holds the notes only.
- Where are these notes written from?
- From the chapter’s own textbook text, part by part, in the book’s own terms; a second, independent model then checked every part against the book. The full lesson, a check question for each part and the practice are in the AskMedha app.
The same preparation, with Medha Ma’am — on your phone
Every question of every chapter with its model answer, practice questions in the board’s own shapes, 60 minutes of class a day, written answers marked, a test every Sunday and a WhatsApp report to parents.
Medha Ma’am is an AI teacher, not a live tutor. Every answer is checked twice; a person takes responsibility.