Finance Education Exercise class 10

 

Unit-8 Lesson- 6   

Finance Education

A.  Very  short  questions.

1.  What  do you mean by  finance education

Ans:- Finance education  means  to provide knowledge and skills to  an individual about economic transaction , importance of finance, etc.

2.  Which bank account is better to open and why? 

Ans:- Fixed  account is better to open because  it  is  secured and  an  individual can get loan against their  fixed  account from the same bank when necessary.

3.  What is ATM card?

Ans:- ATM card is an electronic card issued by a bank or financial institution  too withdraw the  cash.

4.  What do you mean by SMS Banking Service?

Ans:- SMS Banking service is a form of mobile banking facilities used  by banks to send message to customers mobile phones using  SMS messaging, or service provided by them which enables the customer to  perform some  financial transactions using SMS.

 

B.  Short answer questions.

1.  State the various types of bank accounts and explain each  in brief.

Ans:- Bank account is  an account off individual or institution opened by bank or financial  institution for the financial transaction. Banks or other financial institutions and keep he detail record of its customers to open an account. People can deposit and withdraw money from their account. There are three types of bank account. They are described below:

a)  Current account:- It is an accounts  of funds deposited with a bank or financial institution as may be withdrawn at any time on demand. In current account, banks or financial institution do not pay any interest to a balance. This type of account is suitable for offices, traders or entrepreneurs.

b)  Saving accounts: It is an account of funds deposited with a bank or financial institution for purposes of saving. The banks or financial institutions provide interest of certain ate on the balance. The customers can deposit  their money as many times they wish but can  withdraw only  limited money for limited times as  prescribed by the bank. This type of bank account is useful for savers of small amount.

c)  Fixed account: It is an account of funds deposited with a bank or financial institution for a specified term. In this types of bank account the customers are provided with a higher rate of interest than other type of account. The money deposited at this account cannot be withdrawn until the maturity date. If the depositors need money before the specified term, they can deposit the certificate of their deposit in fixed  account as  a security and  get  loan from the same  bank.

 

2.  What are the advantages of having bank account? List them in points.

Ans:- The advantages of having a  bank account  are listed below:

i)  Cash of the individual can be kept safe.

ii)  Amount of money can be deposited and withdrawn at any time.

iii)  Individual can receive and transfer money from one place to another.

iv)  Individual can get interest on deposited amount of money.

 

3.  Discuss about advantages of saving.

Ans:- An  amount of  income  that is not spent and  kept in bank account is saving . It is made for future use and for emergency purposes. The advantages of savings are listed below:

i)  Develops a habit of regular saving.

ii)  Gives security of property.

iii)  Helps to earn interest.

iv)  Develops entrepreneurship.

v)  Creates an environment of investment.

 

4.  List the positive and negative aspects of ATM card.

Ans:- The  positive and negative  aspects  of  ATM card are listed below:

Positive aspects

i)  Easy to carry and use.

ii)  Less chance of robbery.

iii)  Money can be withdrawn and used any time.

iv)  No need to carry money in pocket.

Negative aspects

i)  It may not be usable in remote areas.

ii)  Sometimes ATM May not work properly.

iii)  Chances of misuse of security code given by banks.

iv)  Sometime It may be problematic to draw money when one is busy to go to the ATM booth.