Barter and Money, Bank and Investment & Insurance and Tax | Civics VIII | Social Science | Class 8th | Questions and Answers |

 

JANDKNCERT | Class 8th | Social and Political Life (Civics)|

Barter and Money, Bank and Investment & Insurance and Tax | Civics VIII | Social Science | Class 8th | Questions and Answers |

 

 

Chapter 12: Barter and Money, Bank and Investment & Insurance and Tax

 

 

Exercises

Questions from the textbook for you:

 

 

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Question 1: What was the main drawback of the barter system?
Answer:
The main drawback of the barter system was the lack of a double coincidence of wants—both parties had to want exactly what the other offered at the same time, which made trade difficult and inefficient.

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Question 2: How did the invention of money solve problems in the barter system?
Answer:
Money acted as a common medium of exchange, removing the need for a double coincidence of wants. It made trade easier, allowed people to save, and facilitated pricing of goods and services.

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Question 3: What are the functions of a bank in our economy?
Answer:
(i) Banks accept deposits from the public.
(ii) They provide loans to individuals and businesses.
(iii) Banks also offer services like digital banking, lockers, and money transfers, supporting economic activities.

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Question 4: Why should people invest their savings instead of keeping them idle?
Answer:
Investment helps money grow over time by earning interest or returns. It also supports economic development and helps individuals prepare for future needs like education, emergencies, or retirement.

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Question 5: What is insurance and how does it benefit individuals?
Answer:
Insurance is a financial safety net that protects individuals against unexpected losses like accidents, illnesses, or property damage. It helps reduce risk and provides financial support during emergencies.

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Question 6: How is tax important for a country’s development?
Answer:
Taxes are the main source of revenue for the government. They are used to fund public services like education, healthcare, roads, defense, and welfare programs. Tax helps ensure economic and social development.

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Question 7: What is income tax and who pays it?
Answer:
Income tax is a direct tax paid by individuals or businesses on their income. People earning above a certain limit are legally required to pay it, contributing to national development.

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Question 8: What are the benefits of having a bank account?
Answer:
(i) It keeps money safe.
(ii) It allows people to earn interest.
(iii) It facilitates easy transactions, bill payments, and access to loans.
(iv) It promotes saving habits and financial discipline.

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Question 9: What is the role of the Reserve Bank of India (RBI)?
Answer:
The RBI is the central bank of India. It regulates other banks, controls the supply of money, maintains financial stability, and issues currency notes.

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Question 10: Why should everyone be financially literate?
Answer:
Financial literacy helps people make informed decisions about saving, spending, investing, and borrowing. It empowers individuals to manage their money wisely and avoid financial fraud or debt.

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