It’s All About Money, Money | Indian GK | School GK | GK Olympiad General Knowledge MCQs with Answer
Money is an important part of our life. We use money every day to buy food, clothes, toys, books, and almost everything we need. Without money, it is difficult to live in today’s world. But do we really know what money is, how it works, and why it is so important? Let’s learn all about money in this simple lesson.
What is Money?
Money is anything that people use to buy and sell goods and services. Long ago, before money was invented, people exchanged things directly. For example, a farmer could give rice to a potter and take pots in return. This system was called barter system.
But barter had many problems. Sometimes people could not agree on what to exchange. That is why money was created. Money makes buying and selling easy.
Forms of Money
Today, money comes in many forms.
- Coins and Notes – These are the most common forms of money. Coins are made of metal, and notes are made of special paper. In India, the Reserve Bank of India (RBI) prints notes of different values like ₹10, ₹20, ₹50, ₹100, ₹200, ₹500, and ₹2000.
- Plastic Money – Debit cards and credit cards are called plastic money. With these cards, we can pay in shops or withdraw money from ATMs.
- Digital Money – Nowadays, people use mobile apps like UPI, Paytm, and Google Pay. With digital money, we can pay without using cash.
Who Controls Money in India?
In India, the Reserve Bank of India (RBI) controls money. The Governor of RBI has the authority to sign Indian currency notes. The RBI decides how much money should be printed and circulated. It also makes sure that the economy runs smoothly.
The Rupee and Its Symbol
The Indian currency is called the Rupee (₹). The rupee symbol (₹) was designed by D. Udaya Kumar in 2010. This symbol is now used everywhere in the world to represent Indian money.
The first Indian note printed after independence was a ₹10 note in 1949. Since then, many new designs of coins and notes have been introduced.
Income and Taxes
The Indian government needs money to build schools, hospitals, roads, and provide services to people. The main source of income for the government is taxes. The most important tax is Income Tax.
Another important tax is GST (Goods and Services Tax). GST is collected when we buy things like clothes, food items, or electronic goods. The money collected from taxes is used for the development of the country.
Banks and Their Role
Banks play a very important role in handling money.
- People keep their savings in banks to keep them safe.
- Banks provide loans to people for buying houses, cars, or studying abroad.
- Banks also allow digital payments through ATMs, debit cards, and online transfers.
Thus, banking is an industry that handles cash, credit, and financial services.
Budget
A budget is a plan of how to spend money wisely. Every family makes a budget to manage their income and expenses. The government also makes a budget every year to decide how money will be spent on different sectors like education, health, defense, and transport.
Budget teaches us to use money carefully and avoid waste.
Trade and Economy
Trade means buying and selling goods and services. Trade can happen inside the country (domestic trade) or between countries (international trade).
India trades with many countries. For example, we export spices, textiles, software, and jewelry. We import machines, oil, and electronics. Trade makes the economy strong and provides jobs.
Insurance
Insurance is a system that provides protection against possible loss. For example, health insurance helps us pay hospital bills, and car insurance protects us in case of an accident. It is a way of saving money for emergencies.
Interesting Facts About Money in India
- The RBI’s logo is inspired by the East India Company’s Double Mohur coin.
- Plastic money (debit and credit cards) is becoming more popular than cash.
- Digital payments in India are among the highest in the world.
- The Indian rupee is accepted in some neighboring countries like Nepal and Bhutan.
Why is Money Important?
- Medium of Exchange – Money helps us buy and sell easily.
- Store of Value – We can save money and use it later.
- Unit of Account – It helps us measure the value of goods and services.
- Economic Growth – Taxes and trade make the country stronger.
Conclusion
Money is an important part of our life. From coins and notes to plastic and digital payments, money has changed over time. It helps us in trade, savings, and planning our expenses. The Reserve Bank of India controls money and keeps the economy stable.
For students, understanding money is very important because it teaches the value of saving, budgeting, and spending wisely. Money is not just about wealth—it is also about responsibility. Truly, it’s all about money, money!
MCQs: It’s All About Money, Money
- The main source of income of the Indian government is:
a) Excise duty
b) Sales tax
c) Income tax
d) Service charge - Debit cards and Credit cards are also called:
a) Paper money
b) Plastic money
c) Digital coins
d) Metal money - If we need money to buy a house, car, or study abroad, we approach the bank for:
a) Fixed deposit
b) Loan
c) Insurance
d) Credit card - Who has the authority to sign on Indian currency notes?
a) President of India
b) Prime Minister
c) Governor of RBI
d) Finance Minister - Banking is:
a) An industry that handles cash and credit
b) A type of insurance system
c) A money exchange shop
d) A tax-collecting office - When someone plans their expenses to spend money properly, it is called:
a) Savings account
b) Budget
c) Profit & loss account
d) GST - GST stands for:
a) Goods & Sales Tax
b) Goods & Services Tax
c) General State Tax
d) Government Service Tax - Where is trade conducted?
a) Only in local shops
b) Within a country
c) Outside a country
d) Within and outside a country - After Independence, the first banknote printed in India was of:
a) ₹5
b) ₹10
c) ₹50
d) ₹100 - The rupee symbol was designed by D. Udaya Kumar in the year:
a) 1991
b) 2001
c) 2010
d) 2015 - The RBI logo was inspired by:
a) Ashoka Pillar
b) East India Company Double Mohur
c) Lion Capital of Sarnath
d) Indian National Emblem - Which of these is an example of plastic money?
a) Debit card
b) ₹100 note
c) Gold coin
d) Cheque - Who is the head of the Reserve Bank of India?
a) Finance Minister
b) Prime Minister
c) Governor
d) President - The full form of RBI is:
a) Reserve Bank of India
b) Rural Bank of India
c) Regional Banking Institution
d) Reserve Banking Institute - Which type of tax gives the government its main income?
a) Property tax
b) Income tax
c) Service tax
d) Sales tax - Loans are usually provided by:
a) Schools
b) Banks
c) Post offices
d) Factories - Budget helps in:
a) Spending money properly
b) Printing currency notes
c) Increasing GST
d) Designing coins - Which of these is NOT money?
a) Credit card
b) Account of profit & loss
c) Debit card
d) ₹10 note - The rupee symbol (₹) was officially adopted in:
a) 1999
b) 2001
c) 2005
d) 2010 - The first banknote printed in independent India was of:
a) ₹5
b) ₹10
c) ₹50
d) ₹100
Answer Key
- c) Income tax
- b) Plastic money
- b) Loan
- c) Governor of RBI
- a) An industry that handles cash and credit
- b) Budget
- b) Goods & Services Tax
- d) Within and outside a country
- b) ₹10
- c) 2010
- b) East India Company Double Mohur
- a) Debit card
- c) Governor
- a) Reserve Bank of India
- b) Income tax
- b) Banks
- a) Spending money properly
- b) Account of profit & loss
- d) 2010
- b) ₹10
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