Samacheer Class 8 Social Science - Money, Savings and Investments

Online Banking is also known as Internet banking, which allows customers to conduct financial transactions through the internet without visiting a physical bank branch. Money is what facilitates exchange of goods and services in an economy, serving as a medium of exchange, store of value, and unit of account. Electronic banking is also known as e-banking or digital banking, which includes various forms of banking services delivered through electronic channels such as ATMs, online platforms, and mobile applications. Credit cards and Debit cards are forms of plastic money, which represent electronic access to funds rather than physical currency. The Reserve Bank of India was established in the year 1935, serving as the central bank responsible for monetary policy, currency management, and regulation of the banking system in India.

The word Money is derived from the Roman word “Moneta Juno”

The Reserve Bank of India.

E-Money: Electronic Money is money which exists in banking computer systems and is available for transactions through an electronic system.
E-Banking: Electronic banking, also known as National Electronic Funds Transfer (NEFT), is simply the use of electronic means to transfer funds directly from one account to another rather than by cheque or cash.
4. What are the essentials of Money in your life?
Money is a fundamental need of human beings.
Money is useful to us to pay for tuition, travel, and communication, to have fun and to buy hundred of different things.
It also used for transactions, to store wealth etc.
5. What is the Value of Money?
The value of money is the purchasing power of money over goods and services in a country.
6. What is Savings and Investment?
Savings represent the part of a person’s income which not used for current consumption rather kept aside for future use.
Investment refers to the process of investment fund in a Capital asset with the view to generate returns.
7. What is meant by Black Money?
Savings represents that part of the person’s income which is not used for consumption
Investment refers to the process of investing funds in a capital asset, with a view to generating returns
8. What are the effects of black money on the economy?
Effects of Black money on Economy are:
Dual economy.
undermining equality.
Effect on production.
Distribution of scarce resource

Lack of double coincidence of wants,
Common measure of value
Indivisibility of commodities
Difficulties of storing wealth

The word Money is dervied from Roman word “Moneta Juno”.
It is the roman godesses and the republic money of roman empire.
The Indian Rupee is derived from Sanskrit word ‘Rupya’ which means silver coins.
Today we use paper notes, coins as money.
But evolution of this stage has not happened overnight.
It took thousands of year to reach such a stage.
There are many stages of evolution of money. The earliest and primitive stage is the Barter system.

Functions of money are classified into Primary or Main function, Secondary function, and Contingent function.
Primary or main functions:
The important functions of money performed in the very economy are classified under main functions:
1. Medium of exchange or means of payment – Money is used to buy goods and services.
2. Measure of value – All the values are expressed in terms of money it is easier to determine the rate of exchange between various type of goods and services.
Secondary functions:
The three important of secondary functions are
1. Standard of deferred payment – Money helps the future payments too. A borrower borrowing today places himself under an obligation to pay a specified sum of money on some specified future date.
2. Store of value or store of purchasing power – Savings were discouraged under barter system as some commodities are perishable. The introduction of money has helped to save it for future as it is not perishable.
3. Transfer of value or transfer of purchasing power – Money makes the exchange of goods to distant places as well as abroad possible. It was therefore felt necessary to transfer purchasing power from one place to another.
Contingent functions:
Basis of credit
Increase the productivity of capital
Measurement and Distribution of National Income

1. Student Savings Account:
There are savings accounts some banks offer specifically for young people enrolled in high school or college, and they main feature more flexible terms such as lower minimum balance requirements.
2. Savings Deposits:
Savings deposits are opened by customers to save the part of their current income. The customers can withdraw their money from their accounts when they require it. The bank also gives a small amount of interest to the money in the saving deposits.
3. Current Account Deposit:
Current accounts are generally opened by business firms, traders and public authorities. The current accounts help in frequent banking transactions as they are repayable on demand.
4. Fixed Deposits:
Fixed deposits accounts are meant for investors who want their principle to be safe and yield them fixed yields. The fixed deposits are also called as Term deposit as, normally, they are fixed for specified period.

Basis for comparison
Savings
Investment
Meaning
Savings represent that part of the person’s income which is not used for consumption.
Investment refers to the process of investing funds in capital asset, with a view to generate returns.
Purpose
Savings are made to fulfill short term or urgent requirements.
Investment is made to provide returns and help in capital formation.
Risk
Low or negligible
Very high
Returns
No or Less
Comparatively high
Liquity
Highly liquid
Less liquid

Effects of Black Money on the economy
Dual economy
Tax evasion, thereby loss of revenue to the government.
Undermining equity
Widening gap between the rich and poor
Lavish consumption spending
Distortion of production pattern
Distribution of scarce resource
Effects on production.

Puranas, karshapanas, or panas
2. ……………… kings introduced the Greek custom of engraving portraits on the coins.
Indo – Greek Kushan
3. Lower valued coins known as ……………… in sultans period.
Jittal
4. 178 gms of silver coin were issued by ………………
Shershah Suri
5. The meaning of rupia is ………………
Silver coin
6. ……………… gave permission to the British to coin Mughal Money.
Farrukhsiyarr
7. Mughal money coined at the ……………… mint.
Bombay
8. The British gold coins were termed as ………………
Carolina
9. The British tin coins were termed as ………………
tinny
10. The advantage of the Barter system is not the involvement of ………………
money
11. Exchange of goods for goods was known as ………………
Barter Exchange
12. On the basis of storage of gold they were issued by the goldsmith.
Receipts
13. Paper money regulated and controlled by the ……………… of the country.
Central Bank /Reserve Bank
14. Electronic banking is also known………………
National Electronic Funds Transfer (NEFT)
15. The Real Estate Regulation and Development Act implemented in the year ………………
2016

Savings deposits are opened by customers to save part of their current income.

The Indian Rupee symbol (₹) designed by Mr.Udayakumar, Villupuram District Tamil Nadu.
It was approved by the Government of India on 15 July 2010.

We will be financially independent sooner.
We would not have to worry any unforeseen expenses.
In the future, we will have a financial backup in place if we lose our job.
We will be prepared if our circumstances change.

Teach them about taxes and accounting.
Involve them in grown-up money decisions.
Encourage them to apply for scholarships.
Help them a budget and apply for student loans.
Teach them personal savings.
Encourage them to open a student Sanchayeka Scheme.

Money is a complex concept that fulfills multiple functions simultaneously. According to Scitovsky, money is difficult to define because it serves three distinct functions: it acts as a unit of account by providing a standard measure of value, it functions as a medium of exchange by facilitating transactions between parties, and it serves as a store of value by allowing individuals to preserve purchasing power over time. Sir John Hicks defined money by its functions, stating that anything used as money is money, emphasizing that money is defined by what it does rather than what it is. Some economists define money in legal terms, arguing that anything the state declares as money is money. The Government of India has implemented several legislative measures and taken concrete steps to combat black money. The legislative framework includes the Prevention of Money Laundering Act 2002, which aims to prevent the generation and use of black money, the Lokpal and Lokayukta Act which establishes anti-corruption institutions, the Prevention of Corruption Act 1988 that addresses corrupt practices by public officials, the Undisclosed Foreign Income and Asset Bill of 2015 which targets unreported foreign assets, the Benami Transactions Prohibition Act 1988 amended in 2016 to prevent transactions conducted in others' names, and the Real Estate Regulation and Development Act 2016 which brings transparency to the real estate sector. Recent steps taken by the government include pressure on countries like Switzerland to modify their banking laws regarding foreign assets allegedly stashed in Swiss banks, the appointment of a Special Investigation Team by the government on the directions of the Supreme Court to investigate black money cases, and the demonetization of high-value currency notes to reduce the circulation of black money in the economy.