Learning Objectives
- Understand the evolution of money from barter systems to modern currency and its role as a medium of exchange.
- Explore how modern forms of money are integrated with the banking system.
- Analyze the mechanisms of banking and credit, including demand deposits, cheques, and loans.
- Examine the process and impact of demonetisation, with a focus on the 2016 Indian currency reform.
- Investigate the role of credit in economic activities and the challenges faced by borrowers, especially the poor.
- Compare formal and informal credit sources, focusing on interest rates, accessibility, and borrower impact.
- Evaluate the role of Self-Help Groups (SHGs) in providing credit to the poor and their impact on financial independence.
- Describe the Grameen Bank model and its success in empowering poor women in Bangladesh.
- Detail the components of credit agreements, including interest rates, collateral, and repayment terms.
- Discuss the Reserve Bank of India's role in supervising banks and ensuring fair credit practices.
- Analyze how access to credit influences economic development and the need for equitable distribution of formal credit.