Students can go through AP State Board 8th Class Social Studies Notes Chapter 7 Money and Banking to understand and remember the concept easily.
AP State Board Syllabus 8th Class Social Studies Notes Chapter 7 Money and Banking
→ In a barter system, goods are directly exchanged for each other without the use of money.
→ If we use money, there will be no problem in exchanging commodities. Any commodity or service can be exchanged for money.
→ Over time, people preferred scarce and attractive metals as a medium of exchange.
→ Coins became the acceptable form of money by traders and people.
→ Paper money is also called Hundis. It also has its defects.
→ Banking is a business activity where money deposits are collected from the public and these deposits can be transferred from one person to another.
→ Deposits refer to the money that people keep in the bank.
→ Nowadays cheques are widely used for making payments and receiving money.
→ Banking activity is being done with computers with the internet and other electronic means of communication which is called electronic banking or internet banking.
→ Deposits are the way through which money saved by people comes into the bank.
→ Banks give loans and advances to different sections of the public.
→ Different people can obtain loans for different requirements under some rules and conditions of the bank.
→ Barter: Exchange goods or services for other goods and services
→ Forms of Money: Coins, notes, Hundis, receipts, bills, etc.
→ Deposits: Put down in a specific account.
→ Savings: A reduction in money expenditure for future purposes.
→ Loan: A sum of money that is Pent to someone.
→ Interest: Money paid for the use of money that is being lent
→ Cheque: A written order to a bank to pay a stated sum from an account to a specified person.
