Distinguish between primary and secondary sectors.

(a) Primary Sector: Agriculture, dairy, fishing, forestry etc.

(b) Tertiary sector: Teachers, doctors, advocates, lawyers.


Describe the importance of formal sources of credit in economic development.

a) Helps to meet the working capital needs of production.

b) Helps in ongoing expenses of production.

c) Helps in completing production on time.

d) Helps in increasing earnings.

e) Low interest rates.

f) Easy access of loans to small cultivators and small scale industries.

How can the Government of India play a major role to make globalisation

more fair ? Explain with examples.


How has globalisation affected the life of Indians ? Explain with examples.

Benefits of globalization

a) New jobs have been created in industries.

b) Local companies supplying raw materials, etc. to these industries

c) have prospered.

d) Several of the top Indian companies have been able to benefit from

e) the increased competition.

f) Investment in newer technology and production methods has raised

g) their production standards.

h) Some industries have gained from successful collaborations with

i) foreign companies.

j) It has enabled some large Indian companies to emerge as


l) It has also created new opportunities for companies providing

m) services, particularly those involving IT.

n) Host of services such as data entry, accounting, administrative tasks,

o) and engineering are now being done cheaply in countries such as

p) India and are exported to the developed countries.

Distinguish between investment and foreign investment.

a) The money spent on purchase of buying any asset in the form

b) of land, building, machines etc. is called investment

c) Investment made by MNC’S is foreign investment.



‘‘Credit can play a positive role.’’ Justify the statement with arguments.


‘‘Credit can play a negative role.’’ Justify the statement with arguments.

Positive role of Credit………

Meets the capital needs of small producers

Meet the ongoing expenses of production

Helps in setting up new industries or business

Increase the earning of small producers

Any other relevant point


Negative role of Credit…..

During natural calamities credit repayment is painful to the


Small Producers compelled to sell a parts of land for


Credit pushes the borrowed to deep debt

The borrower reaches to worst than before

Explain the meaning of ‘Currency’.


Explain the reason for necessity of supervision by the Reserve Bank of

India  of formal sources of loans.

Currency is the form of money-paper notes and coins.


Reason for the necessity of supervision by RBI

To maintain cash balance.

RBI sees that bank gives loan not just to profit making business and traders.

iii. To check how much banks are lending to whom and on what interest rates.



Why is money called a medium of exchange ?


Why are demand deposits considered as money ?

The money is called as a medium of exchange because it acts as an intermediate in the exchange process.


Demand deposits are considered as money because they are accepted widely as a means of payment along with currency. /It shares essential feature of money.



Differentiate between multinational corporations and domestic companies.

Difference between multinational corporation and domestic companies: The MNC is a company that owns or controls production in more than one nation where as, a domestic company owns and controls production within the country.


How do different persons have different developmental goals ? Explain

with examples. 

Different persons have different developmental goals:

Landless rural labourers: Their goal is for more days of work and better wages.

Prosperous farmers from Punjab: To assure a high family income through higher support price for their crops. Through hard working and cheap labourers they desire to settle their children abroad.

iii. Urban unemployed youth: To get more employment opportunities and high wages to cater their needs.

A girl from a rich urban family: She gets as much freedom as her brother and is able to decide what she wants to do in life. Her goal would be to pursue her studies abroad.


Explain any three functions of the Reserve Bank of India.


Explain the three important terms of credit.

Functions of the RBI of India:

It supervises the functioning of formal sources of loans.

RBI monitors the banks in maintaining cash balance.

iii. RBI sees that the banks give loans not just for profit making businesses, but also to benefit the small cultivators, small scale industries, to small borrowers etc.

Periodically, banks have to submit information to the RBI on how much they are lending, to whom and at what interest rate etc.





The terms of credit:

Every loan agreement specifies an interest rate which the borrower must pay to the lender along with the repayment of the principal amount.

The lender may demand collateral against loan.

iii. The documentation is required where terms and conditions are mentioned.

Mode of payment and its duration of return to be adhered.


Analyse any three factors that make globalization more fair.

The factors that make globalization more fair:

The government can play a major role in making this possible.

Its policies must protect the interests, not only of the rich and the powerful but all the people in the country.

iii. The government can ensure that labour laws are properly implemented and the workers get their rights. It can support the small producers to improve their performance till the time they become strong enough to compete

Government can use trade investment barriers.

It can negotiate at the WTO for fairer rules.



Analyse the impact of globalization on Multi-national Corporations

(MNCs) in India.

Impact of globalization on Multi-national Corporations in India:

MNC’s have increased their investment.

MNC’s have created new job opportunities.

iii. The local companies supplying raw materials etc. to the MNC’s have prospered.

The competition has increased and several of the top Indian companies have benefitted.

Some have gained from successful collaborations with foreign companies.

It has helped some large Indian companies to emerge as MNC’s.