NCERT Solutions for Class 7 SST Part 2 Chapter 8 Banks and the Magic of Finance
The Big Questions (Page 193)
Question 1.
What is financial infrastructure, and what does it comprise?
Answer:
Financial infrastructure is the system that supports the flow of money in an economy. It includes banks, payment systems, ATMs, post offices, stock markets, and other institutions that help people save, borrow, and transfer money.
Question 2.
What are the main functions performed by banks and how do they impact people’s lives?
Answer:
Banks perform many important functions such as accepting deposits, giving loans, and offering payment services. They keep people’s money safe, encourage regular savings, and allow easy withdrawal through ATMs, debit cards, online payments or cheques. Banks also help businesses by giving loans for starting and expanding their work.
Question 3.
How does financial infrastructure contribute to a nation’s progress?
Answer:
Financial infrastructure encourages saving and investment. It helps businesses get loans, supports digital payments, and makes financial transactions quick and secure. When people and businesses use financial services effectively, the country’s economy becomes stronger and grows faster.
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