CBSE 10th Social Science Term 2 | 5 Marks Important Questions With Answers

In this Article I have provided important questions to prepare for CBSE Class 10 Social Science Term 2 for Board Exam Exam 2022. These set of questions provided here is the best to prepare the 5 marks questions from all chapters of Class 10th Social Science Term-2.

Also Read: CBSE Class 10 Social Science Term-2 Sample Paper With Solutions

All These questions have been prepared by the our examination experts team. All Students can easily read all questions and revise them to score maximum marks in their Social Science board exam 2022.

CBSE Class 10 Social Science Term-2
CBSE Class 10 Social Science Term-2

Chapter Name

Nationalism in India

Que 1. How did the plantation workers understand the idea of ‘Swaraj’? Explain.

Ans. The plantation workers understood the idea of Swaraj as-

(i) The right to move freely in and out of the confined space in which they were enclosed.

(ii) It meant retaining a link with villages from which they had come.

(iii) They interpreted the Swaraj in their own ways, imagining it to be a time when all sufferings and all troubles would be over.

(iv) Through the Inland Emigration Act, they were rarely given permission to get out of the tea plantations.

(v) When they heard of non-cooperation, they left these plantations and thought that Gandhi would give them land.

Also Read: Best CBSE Class 10 Social Science Term-2 Study Materials

Que 2. Why did Gandhiji decide to launch a nationwide Satyagraha against the proposed Rowlatt Act, 1919? How was it organised Explain.

Ans. Gandhiji decided to launch a nationwide Satyagraha against the proposed Rowlatt Act, 1919, because

1) It gave enormous power to the government and no power to the leaders.

2) This law was hurriedly passed even after the united opposition by the Indians and other Indian leaders.

3) It allowed the detention of political leaders without any trial for three years.

4) It means that the British Government can arrest any Indian leader without any proof of crime.

Que 3. What were the two types of demands mentioned by Gandhiji in his letter to Viceroy Irwin on 31st January 1930? Why was abolition of ‘salt tax’ most stirring demand? Explain.

Ans. (i) On 31st January 1930 Mahatma Gandhi sent a letter to Viceroy Irwin stating eleven demands. 

(ii) Some of these were of general interest; others were specific demands of different classes from industrialists to peasants. 

(iii) The idea was to make the demands wide-ranging, so that all classes within Indian society could identify with them and everyone could be brought together in a united campaign. 

(iv) The most stirring of all was the demand to abolish the salt tax. 

(v) Salt was something consumed by the rich and poor alike and it was one of the most essential items of food. 

(vi) The tax on salt and the government monopoly over its production was the matter of concern. 

(vii) Mahatma Gandhi declared and revealed the most oppressive face of the British rule.

Que 4. Describe the role of the peasants in Awadh in the Non-cooperation Movement.

Ans. The role of peasants in Awadh in the Non-Cooperation Movement:

1. Peasant movement was largely against the exploitation by talukdars and landlords, demanding reduction in revenue and removal of begar. Many Panchayats even organised nail-dhobi bhands were they refused any service to the landlords.

2. Oudh Kisan Sabha was set up by Jawaharlal Nehru and Baba Ramchandra with over 300 branches in the villages. They tried to bring Awadh’s peasant struggle within Non-Cooperation Movement.

3. The movement turned violent in 1921. The houses of talukdars and merchants, as well as the bazaars, were attacked and looted. The name of Gandhi was used by local leaders to approve every action like paying no tax.

Que 5. Describe the main features of the ‘Salt March’.


How did the Salt March become an effective tool of resistance against colonialism? Explain.

Ans. The main features of the ‘Salt March’ were:Gandhiji started the historic Dandi March Salt March from Sabarmati Ashram Ahmedabad accompanied by 78 trusted volunteers. The distance from Sabarmati Ashram to Dandi a coastal town on the coast of Gujarat was 240 miles. The volunteers walked for 24 days 10 miles a days. Thousands of people came to hear Gandhiji. The explained the meaning of Swaraj to them. On 6th April he reached Dandi violated the salt law and manufactured salt by boiling sea water.


The ‘Salt March acted as an effective tool of resistance against colonialism because it involved a stirring demand against the abolition of tax. Salt was something consumed by the rich and the by the rich and the poor alike. The tax on salt and the government monopoly over its production revealed the most oppressive face of British rule. To peacefully defy the British, Mahatma Gandhi started his famous salt march accompanied by 78 of his trusted volunteers. On 6 April he reached Dandi, and ceremonially violated the law, manufacturing salt by boiling sea water. This also marked the beginning of Civil Disobedience Movement.

Que 6. Describe the spread of Non-Cooperation Movement in the countryside.

Ans. From the cities, the Non-Coperation Movement spread to the countryside. It drew into its fold the struggles of peasants and tribals which were developing in different parts in the years after the war.

(i) The movement was primarily against talukdars and landlords who demanded from the peasants exorbitantly high rents. By swaraj they understood that they would not be required to pay any taxes and that land would be redistributed.

(ii) In Awadh, peasants were led by Baba Ramchandra-a sanyasi who had earlier been to fiji as an identured labourer.

(iii) Alluri Sitaram Raju was a tribal peasant leader. During the days of Non-Cooperation Movement, he led the tribal people in the Gudem Hills of Andhra Pradesh.

Que 7. How did cultural processes help in creating a sense of collective belongingness in India? Explain.

Ans. There were variety of cultural processes through which nationalism captured people’s imagination. They were:

(i) Image – With the growth of nationalism, the identity of India came to be visually associated with the image of Bharat Mata.

(ii) Song – In 1870, Bankim Chandra Chattopadhyay wrote ‘Vande Mataram’ as a hymn to the motherland

(iii) Folklore – Nationalists began recording folk tales sung by bards. These tales, they believed gave a true picture of traditional culture that had been corrupted and damaged by outside forces.

(iv) Flag – The flag became a symbol of defiance. Gandhiji himself had designed the Swaraj flag which was tricolour and had a spinning wheel in the centre.

(v) Reinterpretation of history – Indians recalled their glorious past to instill a sense of pride in the nation.

Que 8. Evaluate the contribution of folklore, songs, popular prints etc., in shaping the nationalism during freedom struggle.

Ans. In India, the feeling of nationalism is associated with the anti-colonial movement. In the process of their struggle against the colonial yoke, people began to discover their own identity of belonging to one nation. Various folktales, songs, symbols like the national flag, tricolour flag gave a sense of identity to the people. It gave a true picture of India’s culture which was so rich and uncorrupted. They served to produce a sense of achievement and to glorify India’s past. They boosted Indians self-confidence who then strongly waged a war against the colonial rule.

(i) National song like Vande Mataram instilled a sense of belongingness uniting people from different languages. The identity of India came to be associated with Bharat Mata which was depicted as composed, divine and spiritual.

(ii) Folktales, songs, hymns were used by our national leaders to give a sense of pride in our culture. 

(iii) Likewise Khadi, charka used by Mahatma Gandhi become symbols of agitation and resistance. 

(iv) Folktales, songs, literature used by nationalists gave a true picture of India’s culture which was so rich and uncorrupted. 

(v) In Bengal, Rabindranath Tagore himself began collecting ballads, nursery rhymes and myths. 

(vi) In Madras, Natesa Sastri published a massive four-volume collection of Tamil folk tales, The Folklore of Southern India which he believed was a national literature.

Que 9. Explain any five major problems posed by the First World War in India.

Ans. Problems posed during the First World War in India were :

(i) Huge increase in defense expenditure.

(ii) Taxes and customs duties were increased and income tax was introduced.

(iii) The prices got doubled during the war leading to extreme hardships for the common people.

(iv) Villages were called upon to supply soldiers and the forced recruitment in rural areas caused widespread anger.

(v) Crop failure in many parts of India resulted in acute shortage of food.

(vi) Famine and Epidemics like influenza perished large number of people.

Que 10. Explain five points about Gandhiji’s idea of ‘satyagraha’.

Ans. The following are the Gandhiji’s idea of Satyagraha:  

1. According to him, Satyagraha has been formulated as armament of the strongest and does not sup-port violence in any form.  

2. The motive behind Satyagraha was not to damage or harass the enemy but to change him or win him by sympathy, self- suffering and tolerance.

3. According to him the idea of Satyagraha was based on the power of truth.

4. This idea of Satyagraha emphasized on the belief of non-violence, truth, patience and peaceful demonstrations.  

5. He considered that this dharma of non-violence and truth can unite the people of India.

Chapter Name

Manufacturing Industries

Que 1. Which factors are responsible for the decentralization of cotton textile mills in India?

Ans. Factors responsible for the decentralization of the cotton industry in India are as follows:

  • Transport and infrastructure development.
  • Labor availability in the “hinterland Cotton”.
  • Cotton weaving, cotton cutting, and processing is spread throughout  the country.
  • Meeting large domestic markets’ needs.
  • Cotton growing areas in many new areas such as Rajasthan, Punjab, etc.
  • Traditional skills in designing and weaving of the silk, zari, and embroidery of cotton, etc., is also included in Decentralization.

Que 2. The sugar industry is now shifting from north to south. Mention main reasons.

Ans. North India is regarded as the main centre of the sugar industry and Uttar Pradesh is the leading producer. Over the time the sugar industry is shifting towards south India. The main reasons behind shifting of the  sugar industry towards south India are:

 (i) The sugar contents in the cane is higher i.e. 10.5% in Maharashtra and other southern states.

 (ii) Climate is suitable for the cultivation of sugarcane.

 (iii) South has better export facilities as compared to North.

 (iv) Cooperative sugar mills are more successful in management in south India.

 (v) The Peninsular climate helps to extend the crushing season by two months in the south India than  north India.

Que 3. Name the factor which plays the most dominant role in the ideal Location of an industry. Explain any four reasons in support of this factor.

Ans. (1) Availability of raw material: The factory needs to be close to the location of raw materials if they are heavy and bulky to transport. For example, iron and steel and cement industries are located near the source of raw materials. It cuts down the cost of transportation. ‘

(2) Labor: A large and cheap labor force is required for labor-intensive manufacturing industries. High-tech industries have to locate where suitable skilled workers are available.

(3) Power: Power supply is needed for working of the machines in a factory. Earlier industries were near to coalfields. Today, electricity allows more freedom.

(4) Capital: This is the money that is invested to start the business. The amount of capital will determine the size and location of the factory

(5) Transport: A good transport network helps to reduce costs and made the movement of raw materials and finished goods easier.

(6) Market: An accessible place to sell the products is essential.

(7) Government policies: Industrial development is encouraged in some areas and restricted in others. Industries that are located in deprived areas may receive financial incentives and assistance from the government in the form of low rent and tax rebates.

Que 4. “The textile industry is the only industry that is self-reliant and complete in the value-chain? Justify this statement?

Ans. The textile industry is the only industry in India which is selfreliant and complete in value chain i.e. from the raw material to the highest value-added products.

1. The cotton textiles industry is a very old industry which has existed since the ancient times. In the early years, it was concentrated in the cotton growing belt of Maharashtra and Gujarat. Factors such as availability of raw cotton, market, transport facilities (ports), labour and favorable climate contribute towards its prominent presence locally.

2. This industry has close links with agriculture and provides a living to many people involved in the entire chain (eg – farmers, cotton ball pluckers workers engaged in various activities – ginning, dyeing etc.). It not only generates employment opportunities but also supports other industries such as chemicals and dyes, mill stores etc.

3. India is also the second largest producer of raw jute and jute based goods and stands at the second place as an exporter after Bangladesh. Although, there are a no. of challenges faced by this industry, the jute textiles have been successful in providing employment to many people and the increasing concern over environmental friendly products globally has also widened the opportunity for this industry.

Que 5. Explain five different ways to control environmental degradation caused by industries.

Ans. Different ways to control environmental degradation caused by industries are following : 

1. Air pollution caused by industrial units can be reduced by fitting smoke stacks to factories with electrostatic precipitators, fabric filters, scrubbers and inertial separators.

2. Smoke can be reduced by using oil or gas instead of coal in factories.

3. Minimizing use water for processing in reusing and recycling it in two or more successive stages.

4. Harvesting of rain water to meet water requirements.

5. Treating hot water and effluents before releasing them in rivers and ponds.

Chapter Name

Life Lines of National Economy

Que 1. Examine with examples the role of means of transport and communication in making our life prosperous and comfortable

Ans. Railways, airways, waterways, newspapers, radio, television, cinema and internet, etc. have been contributing to its socio-economic progress in many ways. It has enriched our life and added substantially to growing amenities and facilities for the comforts of life.

  • Means of transport and communication often called as the life lines of a nation and play an important role in the economic development of a country.
  • They move goods from their supply locations to demand locations.
  • They also help in the movement of labour from one place to another. This helps in creating employment for the labourers as well as help in supplying labour to the agricultural and industrial sector.
  • Communication has also helped in transfer of information which has led to technology transfer.
  • Communication has been the major driving force in the process of globalization.

All these factors have helped in the growth of humans as well as helped them in making their lives easier with improvement in the economic, trade and commerce, culture, technology and thus in a way have helped in the evolution of human beings.

Que 2. “Roadways still have an edge over railways in India”. Give reasons

Ans. Roadways still have an edge over railways in India because : 

(a) the construction cost of roads is much lower than that of railway lines. 

(b) roads can traverse comparatively more dissected and undulating topography. 

(c) roads can negotiate higher gradients of slopes and as such can traverse mountains such as the Himalayas, 

(d) road transport is economical in transportation of few persons and relatively smaller amount of goods over short distances.

(e) it also provides door-to-door service, thus the cost of loading and unloading is much lower. 

(f) road transport is also used as a feeder to other modes of transport such as they provide a link between railway stations, air and sea ports.

Que 3. Why do the movement of goods and services form one place to another require fast and efficient means of transport? Explain with examples.

Ans. Reasons for fast and efficient means of transport : 

(i) It is necessary to carry raw materials to production centres and from manufacturing hubs to markets in as little time as possible to achieve efficiency. This is particularly true for perishable goods.

(ii) It enables goods to reach newer markets and allows people greater access to goods and services. Efficient transport network enables markets to expand to the hinterland. 

(iii) Communication opens new avenues of commerce. Modern communication tools like internet allow commercial transactions to take place over large distances, facilitating electronic commerce and banking across countries and contribution to integration of markets. They also keep buyers and sellers informed about their present and prospective markets. 

(iv) Goods and services cannot move on their own from supply houses to demand locales. This necessitates the need for transportation. Thus, a country’s economy depends not only on the production and sale of goods and services but on their transport as well. 

(v) The means of transportation communication are called the lifeline of nation and its economy because they are the pre-conditions for progress.

Que 4. Why is air travel more popular in the north eastern states of India? Explain.

Ans. Air transport is the only way to commute fast in the North-East. 

There are no functioning railway routes to states like Manipur, Arunachal Pradesh and Mizoram. Although flights are much more expensive, students and working professionals tend to choose flights over trains as there are no other alternatives. 

Even if the option of trains are it takes days to reach a destination in the North-East from the mainland. And in remote areas even buses are not available to the public due to the hilly topography and under development of this region. 

The problem gets compounded during the monsoon season as even buses cannot ply through the National Highways sometimes due to landslides.

Que 5. “Railways are the principal mode of transportation in India.” Explain.

Ans. 1. Railways are the principal mode of transportation for freight and passengers in India.

2. Railways also make it possible to conduct multifarious activities like business, sightseeing, and pilgrimage along with transportation of goods over longer distances.

3. Apart from an important means of transport the Indian Railway has been great integrating force for more than 150 years.

4. Railways in India bind the economic life of the country as well as accelerate the development of the industry and agriculture.

5. The Indian Railways have a network of 7,031 stations spread over a rout length of 63,221 km. with a fleet of 7817 locomotives, 5321 passenger services vehicles, 4904 other coach vehicles and 228,170 wagons as on 31 March 2004

Que 6. Describe the significance of tourism as a trade in India.

Ans. The significance of tourism as a trade in India:

(i) Tourism in India has grown substantially over the last three decades.

(ii) Foreign tourist’s arrival has witnessed an increase, thus contributing to foreign exchange.

(iii) More than 15 million people are directly engaged in the tourism industry.

(iv) It provides support to local handicrafts and cultural pursuits.

(v) Tourism also promotes national integration.

(vi) It helps in development of international understanding about our culture and heritage.

(vii) Foreign tourists visit India for heritage tourism, eco-tourism, adventure tourism, cultural tourism, medical and business tourism.

Que 7. Explain any five major problems faced by road transport in India.

Ans.  Five major problems faced by road transport in India are:

  • Most of the Indian roads are unsurfaced and are not suitable for use of vehicular traffic.
  • Roads are not properly maintained. Poor road surfaces cause heavy loss in wear and tear of vehicles.
  • There are multiple check-posts, toll-tax and octroi duties collection points on the roads which bring down the speed of the traffic, waste time and cause irritation to the commuters. 
  • Many roads have inadequate capacity, weak pavement, unbridged level crossings and lack of wayside amenities and safety measures.
  • The roadways are highly congested in cities and most of the bridges and culverts are old and narrow.

Que 8. Why is the distribution of roads not uniform in India? Explain with examples.

Ans.  The distribution of roads is not uniform in the country.

i. Density of roads (length of roads per 100 square km of area) varies from only 10.48 km in Jammu and Kashmir to 387.24 km in Kerala with a national average of 75.42 km.

ii. The density of road is high in most of the northern states and major southern states. It is low in the Himalayan region, north-eastern region, Madhya Pradesh and Rajasthan.

iii. Nature of terrain and the level of economic development are the main determinants of density of roads.

iv. Construction of roads is easy and cheaper in the plain areas while it is difficult and costly in hilly and plateau areas.

v. Therefore, not only the density but also the quality of roads is relatively better in plains as compared to roads in high altitude areas, rainy and forested regions.

Que 9. What are the advantages of pipeline transportation?

Ans. Advantages of pipeline transportation are following : 

1. The pipelines can be laid over difficult terrain as well as under water.

2. Their operation and maintenance cost is lower.

3. It involves very low energy consumption.

4. It ensures steady and constant supply of liquid and gases to the places at long distances.

5. It minimises transhipment losses and delays.

6. The pressure of carrying mineral oil and natural gas by railways has been reduced by the use of pipeline transport.

Chapter Name

Political Parties

Que 1. State the various functions that Political parties perform in a democracy.

Ans. The various functions political parties perform in a democracy are:

  • Candidates are put forward by political parties to contest in elections. These candidates may be chosen by the top leaders, or by members of the party.
  • Parties put forward their policies and programes for voters to chose from them.
  • Political parties play a major role in making laws for the country. No law can become a bill unless majority parties support it.
  • Political parties form and run governments.
  • Parties that lose election play the role of opposition to the party in power.
  • Parties shape public opinion.
  • Political parties form an important link between the government and the people. It is easy for the public to approach their local leader than a government official. The local leader has to listen to the public demand, otherwise, he will lose the next election.

Que 2. What are the various challenges faced by political parties?

Ans. The various challenges faced by political parties are:

Lack of Internal democracy:

• Every member of the party does not have a chance to take part in the decision-making process.

• Every member is not consulted before taking a decision.

• There is no proper organisation or registration of members.

• Power remains in the hands of a few top leaders, who do not consult ordinary members.

• Ordinary members have no information about the internal working of the party.

Dynastic Succession: With power in the hands of a few top leaders, all party positions go to their family members. These members may not be qualified or have the ability to hold their positions.

Money and Muscle Power:

• Money is needed to organise demonstrations, public meetings, and speeches to publicise the image of the party. Parties choose those candidates who can raise money for the party and win elections with their money.

• Sometimes parties also support criminals candidates because they can win elections.

The meaningful choice to others: Most of the political parties have the same fundamental and ideological issues. Voters do not have a meaningful choice. Even leaders keep changing parties, thus confusing the voter. 

Que 3. Lack of internal democracy within parties is a major challenge to political parties allover the world. Analyse the statement.

Ans. The political parties play an important role in democracy as:

(i) Parties contest elections: In most democracies elections are fought mainly among the candidates put up by political parties.

(ii) Parties put forward different policies and programmes and the voters choose from them.

(iii) Parties play a decisive role in making laws for a country.

(iv) Parties shape public opinions. They raise and highlight issues.

(v) Form and run governments.

(vi) Role of opposition. Opposition role is important in democracy as it voices different views and criticize government for its failures or wrong policies.

(vii) Parties provide people access to government machinery and welfare schemes implemented by governments.

Que 4. Elucidate some of the recent efforts taken in our country to reform political parties and its leaders.

Ans. The main vision of the constitution makers cannot be achieved until the representatives of the people don’t follow democratic practices within the political parties. Some measures were taken by the government to reform political parties have been:

(i) Anti-defection law, which states that if any sitting MLA or MP changes his party, he will lose his seat in the legislature.

(ii) It is mandatory now for every candidate to furnish all details related to the assets, criminal cases pending.

(iii) Election Commission has made it mandatory for parties to hold regular elections a file income tax.

(iv) The recent judgment by Supreme Court that disqualifies convicted MP’s and MLA’s who have sentenced to more than two years of imprisonment by the lower court and whose appeal against their conviction is pending and is debarred from contesting elections is considered to be the landmark decision by the apex court to clean the system.

These are the few reforms made by the government to ensure transparency and make the parties accountable. However these reforms should be followed in the spirit also along with the letter, only then the democracy will be deepened.

Que 5. What is a political party? Suggest and explain any four measures to reform political parties.

Ans. A political party is a group of people who come together to contest elections and hold power in the government. They agree on some policies and programmes for the society, with a view to promoting the collective good.

(i) The anti-defection law was introduced to curb the growing trend of elected representatives who changed political parties to become ministers or to get cash rewards.

(ii) The affidavit requirement was an order passed by the Supreme Court as a measure to curb the challenge of money and muscle power.

(iii) The third reform measure was made by the Election Commission where for all political parties it was mandatory to hold regular elections and also file their income tax returns. Besides these, many suggestions are often made to reform political parties: 

(iv) It should be made mandatory for political parties to give a minimum number of tickets, about one-third, to women candidates. Similarly, there should be a quota for women in the decision-making bodies of the party. 

Que 6. ‘Modern democracies cannot exist without political parties.’ Examine the statement

Ans. The examination is as following:

(i) Modern form of democracies also need representatives from various political parties to form the government and to keep a check on the ruling party by being in opposition.

(ii) Without political parties, there would be chaos and turmoil in the society.

(iii) Existence of political parties in a representative democracy ensures that the country runs as per its policies and ideologies and has a responsive and accountable government that is answerable to the people.

(iv) Without political parties, candidates elected will be independent, will be accountable to their constituency for what they do in the locality.

(v) Political parties are required so that a country is governed as per set ideologies and will be responsible for how the country will be run.

Que 7. What is one-party system? What are its merits and demerits?

Ans. There are many countries in the world with one-party system. The formation of other parties is banned there. For example, Soviet Union, China, Bulgaria, Rumania, Poland, Czechoslovakia, Yugoslavia and Finland are Communist countries and there is only one Communist Party. 

Merits of One Party System

  1. It helps in the establishment of stable administration which further helps in the progress of the country. The progress of the Soviet Union is a glaring example in this regard.
  2. In this system, formation and execution of long-term planning is possible.
  3. The country achieves remarkable economic progress as the Government ends the conflicts among all the classes and it devotes its entire energy, towards the increase of production in the country.
  4. The administration becomes efficient because all the powers are concentrated in the hands of one leader and there favouritism, nepotism and black-marketing are banished altogether.
  5. There is a unity and discipline in the country.

Demerits of One Party System

  1. Since there is only one party in this system, there is no freedom of expression.
  2. Democracy is eroded and dictatorship emerges.
  3. There is no regard for the views of different classes and interests.
  4. The Government becomes absolute and the administration becomes irresponsible.
  5. The development of the personality is hindered because all social freedoms are crushed.

Que 8. “Increase in the number of states or regional parties strengthened democracy in India.” Comment

Ans.  As India is a federal state, more regional parties mean more influence of state parties in national politics. Now, regional parties have a say in political policies as they win elections in their states. In the present political scenario, no single national party has been able to form a government on its own strength since 1996. Parties had to form alliances with the regional parties to form a coalition government at the centre. This has broadened the concept of popular participation and strengthened the federation and democracy in our country.

Que 9. “The growing role of money and muscle power is a major challenge in India.” Explain.

Ans. (i) Since parties are focussed only on winning elections, they tend to use short cuts to win elections.

(ii) They tend to nominate those candidates who have or can raise lots of money.

(iii) Rich people and companies who give funds to the parties tend to have influence on the policies and decisions of the party.

(iv) In some cases, parties support criminals who can win elections.

(v) Democrats all over the world are worried about the increasing role of the rich people and big companies in democratic politics.  

Chapter Name

Outcomes of Democracy

Que 1. “Democratic system is better than any other form of government.” Support the statement with examples

Ans. Democracy or democratic system is a better form of  government when compared with any other form of government because

(i) Democracy promotes equality among citizens. Every citizen of the country has equal rights before the law.  All individuals have equal rights in electing their representatives.

(ii) Democracy enhances the dignity of the individual. By giving its citizens equal rights, it enhances dignity and freedom of the individual. Democracy gives equal treatment and respect to women, disadvantaged and discriminated castes in our society.

(iii) Democracy improves the quality of decision making. As there is open debate on major issues in democracy, the quality of decisions is improved.

(iv) Democracy provides a method to resolve conflicts. Democracy reduces the possibility of social tension which leads to peaceful social life. It allows room to correct mistakes.

(v) Democracy is a legitimate government. Democracy gets the popular support of the people by regular, free and fair elections.

Que 2. How does democracy produce an accountable, responsive and legitimate government?

Ans. In a democracy, the Government is always held accountable. If any of the policies, and laws are not implemented properly, then the citizens have the right to vote them out in the next elections. Moreover, in a democracy, citizens can approach the Judiciary, if the Government has taken any actions which are counter productive to the well-being of citizens.

Reasons for democracy being accountable, responsive and legitimate Government

  • The government can be responsible when people start taking actions when the government becomes insensitive about their aspirations.
  • People can hold protests, carry out campaigns and organise rallies and force the government to respond to them.
  • A democratic government is a legitimate government, as it is elected by citizens and enjoys the confidence and trust of the citizens.
  • People have the right to choose their rulers and they have control over their rulers. Citizens can participate in decision making.
  • Democracy makes the point that decision making is based on norms and procedures. So, a citizen who wants to know if a decision was taken through the correct procedures, can find out this information.
  • Citizens can take part in decision-making whenever Government takes feedback regarding some laws or policies.
  • A democratic government is the people’s own government and it is run by the people.
  • People are ruled by representatives elected by them.

Que 3. ‘‘In actual life, democracies do not appear to be very successful in reducing economic inequalities.’’ Explain the statement giving an example.

Ans. The democracy doesn’t guarantee economic development. In most of the democracies, a small number of ultra-rich enjoy a highly disproportionate share of wealth and income. For example, countries like South Africa and Brazil, the top 20% people take away more than 60 % of the national income. Unfortunately, those who are at the bottom of the society have a very little share (less than 3 %) to depend upon. Even in India, the elected government looks reluctant to take necessary steps for the upliftment of the large section of poor in our society. The situation is much worse in some other countries. In Bangladesh, more than half of its population lives in poverty. People in several poor countries are now dependent on the rich countries even for food supplies.Thus, it can be concluded that in actual life, democracies do ’ not appear to be very successful in reducing economic inequalities.

Que 4. What are the factors which are responsible for the economic development of the country? Does democracy provide guarantee of economic development?

Ans. Well first of all it depends on what stage of develpoment a country is . If it is a third world country than democracy is a necessity as it will be a major part of trade agreements , asking for aid and contracts and different treaties. Becoming a part of important organizations such as WHO and WWF requires a stable nature and cooperation as countries with rebellious nature are mostly unlikely to be a apart of such projects. Different countries can pose embargoes and trade barriers and even vote against in united nations when taking important decisions. Having more friends and good relations mean that country is more likely to get concessions and help. But democracy can also mean double crossing someone which can be harmful for others , however if the general nature of a certain country is too emotional or rebellious only a diplomatic ruler can lead such people .

Que 5. Explain how democracies lead to peaceful and harmonious life among citizens.

Ans. Yes it is true that democracies lead to peaceful and harmonious life among citizens. It can be explained by the following points:

  • Only Democratic government is a form of government which provides accommodation to social differences and conflicts by making everybody learn how to respect every individual’s opinion as differences can never be suppressed completely.
  • Democracy ensures inclusion of every group including minorities and its interests in the decision making.
  • It reduces the probability of violence due to social differences and conflicts between different kinds of people.
  • It provides right to equality, equality before law, equal opportunities of work and prohibition of discrimination on grounds of religion, race, caste, gender or place of birth to every citizen or individual.
  • It also ensures various other fundamental rights of the citizen.

Chapter Name

Money and Credit

Que 1. State the role of Reserve Bank of India.

Ans. The role of Reserve bank of India can be described by the following points:

(i) It holds the top spot in India’s banking hierarchy .

(ii) It is in charge of issuing currency notes on behalf of the government.

(iii) It acts as the banker and financial advisor to government . 

(iv) It supervises the functioning of formal sources of loans.

(v) It promotes financial inclusion by ensuring that banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, and small borrowers.

(vi) It manages the foreign exchange .

(vii) It is responsible for formulation of the country’s monetary policy .

(viii) It ensures that banks maintain a certain cash reserves at all times.

Que 2. Which are the modern forms of money?

Ans. In the modern monetary systems, there are three forms of money in actual use: (i) Metallic Money, (ii) Paper Money, and (iii) Credit Money.

The first two kinds of money are in the form of currency money and the last one is credit or bank money.

Metallic Money : Metallic money refers to coins made out of various metals like gold, silver, bronze, nickel, etc.

Paper Money : Paper money consists of currency notes issued by the State Treasury or the Central Bank of the country.

Credit Money : In modern economic societies, with the development of banking activity, along with paper money, another form of convertible money has developed in the form of credit money or bank money.

Que 3. How do the demand deposits share the essential features of money ?

Ans.  (i) Demand deposits offer another interesting facility. It helps in making the payment in cheque.

(ii) A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the other person or to the account holder.

(iii) Thus, we see that demand deposits share the essential features of money.

(iv) The facility of cheques against demand deposits makes settlement of payments possible without using cash.

(v) Since demand deposits are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.

Que 4. What is debt-trap ?

Ans. Technically, a debt trap is a situation where you’re forced to take fresh loans to repay your existing debt obligations. And before you know it, you get stuck in a situation where the amount of debt that you owe takes a turn for the worse and spirals out of control. Such a situation typically arises when your debt obligations exceed your repayment capacity. 

For instance, when the income that you generate is not enough to clear your debt, the interest on the outstanding loan amounts starts to pile up quickly. This forces you to avail fresh loans to clear off the piled up interest, thereby landing you in a debt trap. 

Que 5. Which government body supervises the functioning of formal sources of loans in India? Explain its functioning.

Ans. Reserve Bank of India supervises the functioning of formal sources of loans in India.

  • It issues currency notes on behalf of the central government. 
  • It issues guidelines for fixing rate of interest on deposits and lending by banks. ,, 
  • It ensures that banks should maintain a minimum cash balance out of the deposits they receive. 
  • It ensures that the banks should give loans not only to profit making businesses but also to poor people and small traders. 
  • Periodically, the banks have to submit a report to the RBI on how much they are lending, to whom and at what interest rate.

Que 6. What is meaning of Barter system ? Why is double coincidence of wants is an essential feature of a Barter system ?

Ans. Barter system was used in ancient times for the exchange goods. It was a system where one commodity, product or some goods was exchanged for another. For instance, if a person has 1 kg of sugar and he wants to have 1 kg of jaggery in exchange for that, he can exchange the same if there is someone who is willing to exchange jaggery for sugar. This process was called a commodity for commodity exchange. Further, it was replaced by the monetary system. Double coincidence is where trader in the market are willing to exchange goods. In other words, it means that one trader wants what another trade is offering in the market and vice versa. Double coincidence of wants is essential because it facilitates the exchange of goods and thus the exchange of goods will occur.

Que 7. Why is modern currency accepted as a medium of exchange without any use of its own ? Point out the reasons

Ans. Modern currency is accepted as a medium of exchange without any use of its own because: 

(1) Modern currency is authorized by the government of a country. 

(2) In India, the Reserve Bank of India issues all currency notes on behalf of central Government. 

(3) No other individual or organization is allowed to issue currency. 

(4) The law legalises the use of rupee as a medium of payment that cannot be refused in settling transactions in India. 

(5) No individual in India can legally refuse a payment made in Rupees.

Que 8. Why should credit at reasonable rates from the banks and cooperatives be available for all ?

Ans. (i) Credit at reasonable interest rates should be available for all so that they may increase their income and help in the over all development of the country.

(ii) High interest rate do little to increase the income of the borrowers.

(iii) It is necessary that  the banks and cooperatives increases their lending particularly in the rural areas, so that the dependence of the people on informal sources of credit reduces.

(iv) In addition to this more credit should be given to the poor to get maximum benefit from the cheaper loans.

(v) This will help in increasing in their income as well as standard of living.

Que 9. Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas?

Ans. It is necessary for the banks and cooperative societies to increase their lending facilities in rural areas because of the following reasons;

1. India is an agricultural country so the people in rural areas deserve a special attention.hence, the banks and cooperative society should help the needy people in rural areas.

2. mostly the people in rural areas are illiterate and hence they can be easily cheated by the money lenders.

3. most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrowers.hence, it is necessary that banks and cooperative increase their lending particularly in rural areas, show that the dependence on informal sources of credit reduces.

4. only the banks and cooperative societies can provide loans to the rural household at cheap rates which can easily save them from the clutches of the money lenders.

5. most of the people in urban areas depend upon the rural people for their food requirements, etc. and, their welfare is most important. hence the banks and cooperative societies should provide more facilities to the rural households in the matter of advancing loan.

Que 10. How do banks play an important role in the economy of India?

Ans. Banks play an important role in developing the  economy of India :

(i) They keep money of the people in its safe  custody.

(ii) They give interest on the deposited money to the  people.

(iii) They mediate between those who have surplus  money and those who are in need of money.

(iv) They provide loan to large number of people at  low interest rate.

(v) They promote agricultural and industrial sector  by providing loans.

(vi) They also provide funds to different organizations

Chapter Name

Money and Credit

Que 1. What is the difference between formal sector loans and informal sector loans? Give two examples of each.

Ans. Differences Between Formal and Informal Sector Loans are following : 

Formal Sector LoansInformal Sector Loans
The Reserve Bank of India (RBI) organises the functioning of formal sources of loans. There is no organisation which supervises the loan activities of lenders.
RBI checks on how much they are lending and at what interest.They can lend the money at whatever interest rate they select.
This sector has some rules and boundaries to get the money back.No one can stop them using unfair means to get their money back.
They charge reasonable interest as compared to informal lenders on credit.They charge much higher interest as compared to formal lenders on credit.
The main motive is public welfare.The main motive is to make their own profits.
This includes banks and co-operatives.This includes traders, moneylenders, employers, friends etc.

Que 2. What are formal sources of credit? Why do we need to expand formal sources of credit in India.

Ans. Formal sources of credit consist of commercial banks, regional rural banks, cooperative credit societies etc.The Reserve Bank of India supervises the functioning of formal sources of loans.For instance, we have seen that the banks maintain a minimum cash balance out of the deposits they receive. The RBI monitors that the banks actually maintain the cash balance. 

We need to expand formal sources of credit in India due to the following reasons:

● The formal sector loans consist of the banks and the cooperatives. The informal sector consists of money lenders, traders, employers, etc.

● The informal sector usually tends to exploit the borrowers by charging a very high rate of interest.

● The formal sector is extremely important to save people from such kind of exploitation.

● The formal sector charges a comparatively low interest on loans as compared to the informal sectors.

● It provides cheap and affordable credit to the borrower.

● It safeguards the borrower from the vicious circle of poverty which eventually leads to a debt trap.

● The Reserve Bank of India supervises the functioning of the formal sources of credit.

● It is done by imposing various rules and regulations to ensure that the banks give loans to small cultivators and borrowers and not only to the profit-making business and traders.

Que 3. Why is it necessary that banks and co-operatives increase their lending in rural areas ? Explain.

Ans. 1. The formal sector i.e. the banks and the cooperatives need to engage more in the lending activities because of the disadvantages posed by the informal sector.

2. There is no organisation which supervises the credit activities of lenders in the informal sector. They can lend at whatever interest rate they want and there is no one to stop them from using unfair means to get their money back.

3. The high cost of borrowing discourages many people who wish to start an enterprise. It also significantly reduces the income of the borrower as much of the earnings go into repayment of the loan.

4. Borrowings at much cheap rates from the formal sector would therefore encourage higher incomes which would in turn lead to an increase in the amount of borrowings from the banks for various purposes.

5. An increase in borrowings would help people in growing crops, do business, set up small scale industries etc which would add to the development aspect of a country.

Que 4. “RBI plays a crucial role in controlling formal sector loan.” Explain.

Ans. 1. The Reserve Bank of India supervises the functioning of formal sources of credit in India. It is the central bank of India.

2. The Reserve Bank of India supervises the functions of banks in the following ways:

(i) It monitors the banks in actually maintain the required cash balance out of the deposits they receive.

(ii) Banks in India these days hold about 15% of their deposits as cash.

(iii) It ensures that the banks give loans not just to profit-making businesses and traders but also to small cultivators, small scale industries, to small borrowers etc.

(iv) It issues guidelines for fixing rate of interest on deposits and lending by banks.

(v) Periodically, banks have to submit information to the RBI on their credit activities like how much they are lending, to whom, at what interest rate, etc.

(vi) Such a supervision by the Reserve Bank on the working of other banks is quite necessary to keep them under control and also to see that there is no mismanagement or misappropriation of any kind in their working.

Que 5. Self-Help Groups enjoy a lot of freedom in their functioning. Explain.

Ans. (1) In Self-Help Groups, there is no provision of a certain number of members or a certain amount to deposit. Members are free to their number and amount to deposit in the group.

(2) Most of the important decision regarding the savings and loan activities are taken by the group members.

(3) The group decides as regards the loans to be granted—the purpose, amount, interest to be charged, repayment schedule, etc.

(4) Also, it is the group which is responsible for the repayment of the loan. In any case of non-repayment of the loan by anyone, the member is followed up seriously by other members in the group.

(5) The SHGs help borrowers overcome the problem of lack of collateral and documentation requirement. Besides, the regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health, nutrition, domestic violence, etc.

Que 6. Self-Help Groups can help in solving the problem of credit in rural areas. Explain.

Ans. 1. The SHGs help borrowers overcome the problems of lack of collateral .

2. They can get timely loans for a variety of purposes at a reasonable interest rate .

3. SHGs are the building blocks of organisations of the rural poor.

4. It help women to become financially self reliant .

5. The regular meetings of the group provide a platform to discuss and act on a variety of social issues such as health , nutrition, domestic violence etc.

Que 7. Why are informal sources of credit preferred in rural areas? Give five reasons.

Ans. There are informal sources of credit preferred in rural areas following: 

  • Banks are not present everywhere in rural India.
  • Even if they are present, getting a loan from a bank is much more difficult than taking a loan
    from informal sources.
  • Bank loans require proper documents and a collateral. Absence of collateral is one of the major reasons which prevents the poor from getting bank loans.
  • Informal lenders like moneylenders know the borrower personally and hence, are often willing to give a loan without a collateral.
  • The borrowers can, if necessary, approach the moneylender even without repaying their earlier loans.
  • However, the moneylenders charge very high rates of interest, keep no records of the transactions and harass the poor borrowers.

Que 8. Why are credit arrangements not fair for all sections of society? Give three reasons. Suggest two remedies for the problem.

Ans. (1) Undoubtedly, credit arrangements are not very fair for all sections of society The share of formal sector credit is higher for. the richer households as compared to the poorer households. This has the following reasons :

(i) Poverty affects poor households’ capacity to borrow. Formal sector credit requires proper documents and collateral as security against loans. So, poor people lack in providing such things which affect their capacity to borrow

(ii) The poor people do not repay loan on time.

(iii) The people in villages may not have access to banks in their village.

(2) (i) More credit facilities should be made available in rural areas by opening more banks there.

(ii) The procedure of giving loans should be made easier and simpler.

Chapter Name

Globalization and the Indian Economy

Que 1. Explain the role of multinational corporations in the globalisation process.

Ans. MNCs are playing a major role in the globalisation process.

(i) MNCs is not only selling its finished products globally, but more important, the goods and services are produced globally.

(ii) The production process is divided into small parts and spread out across the global.

(iii) The result of greater foreign investment and greater foreign trade has been greater integration of production and markets across countries.

(iv) More and more goods and services, investments and technology are moving between countries.

(v) The technology has made much faster delivery of goods across long distances possible at lower costs.

Que 2. Describe any five strategies adopted by the MNCs to earn more and more profit.

Ans. (1) MNCs set up joint production units with localcompanies, which helps them to save money to invest in other sectors or buy new machineries or technology.This joint production also helps them to capture the existing market of the localcompanies.

(2) MNCs might look for government policies that look after their interests.To sell products globally it should be produced globally to meet the wide market. It helps to save time and money.

(3) Companies are able to cut down the cost of production to maximize the profit. As cost of raw materials cannot be reduced, they tried to cut labour costs.In order to compete in the world market exporters try and cut labour costs.

(4) Where earlier a factory used to employ workers on a permanent basis, now they employ workers only on a temporary basis so that they do not have to pay workers for the whole year and they do not have to pay any service benefits.

(5) Workers also have to put in very long working hours and worknight shifts on a regular basis during the peak season. Wages are low and workers are forced to work overtime to make both ends meet.Workers are denied their fair share of benefits as manufacturers  are always on the look out for cheaper labour.

Que 3. What were the reasons putting barriers to foreign trade and foreign investment by the government of India? Why did it wish to remove these barriers?


Analyse the role of globalisation on the Indian economy

Ans. The Indian government, after Independence, had put barriers to foreign trade and foreign investment.

(i)This was considered necessary to protect the producers within the country from foreign competition.

(ii)Industries were just coming up in the 1950s and 1960s, and competition from imports at that stage would not have allowed these industries to come up. 

(iii)Starting around 1991, some farreaching changes in policy were made in India. The government decided that the time had come for

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