What pays for the first
The other kind of infrastructure
A network of stock markets, payment systems, banks and other financial institutions.
📚 Chapter Learning Kit
Banks and the Magic of Finance · Class 7 Social Science · Exploring Society
English 4 topics 140 leveled MCQs 68 flashcards 5 games Free
Shared by a Veda teacher · Generated with Veda AI · Oct 2026
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Veda Bites are swipeable micro-lessons — each one teaches exactly one idea. Here's a taste from this kit; the app has the full deck.
Navdeep and his salary
Why a cupboard is wrong
He saves 3,000 rupees a month, and keeping all of it in a cupboard at home is not a safe place for it.
Rima and her bamboo
The other half
Her business needs money, and friends and family could not help as much as she needed.
Lending, not holding
The other side of the counter
Holding deposits is half of what a bank does, and lending is the other half.
Three purposes
What a household borrows for
Education has to be funded, and a vehicle has to be bought.
A longer list
What a business borrows for
New products must be launched in markets, and products must be transported.
📖 Smart notes
What you'll study, topic by topic
1
Banks, accounts and compounding
Financial infrastructure is the network of banks, payment systems and stock markets. A bank takes deposits and lends them out, pays interest, and offers savings, current and fixed deposit accounts.
- Financial infrastructure is a network of stock markets, payment systems, banks and other financial institutions.
- A bank is the financial institution that gathers money from people as deposits and lends it out to borrowers as loans.
- One person surplus savings become another person business loan, and neither has to find the other.
~40 min · full explanation, examples & memory tricks in the app
2
Loans, interest rates and Jan Dhan
A bank lends deposits out as loans, paying a lower rate to savers than it charges borrowers and keeping the difference. The Jan Dhan Yojana of 2014 opened over 50 crore accounts, mainly for women.
- Banks lend to borrowers as loans, for purposes such as funding education, buying a vehicle or buying a house.
- Businesses borrow to launch new products, to transport them, and to purchase raw materials and new machinery.
- A loan is an amount borrowed from a bank or financial institution, carrying an obligation to repay it later with interest.
~40 min · full explanation, examples & memory tricks in the app
3
Post offices, NABARD, the RBI and temples
Post offices, the Industrial Finance Corporation and NABARD all lend without being ordinary banks. The RBI supervises the system, issues currency and fixes the benchmark rate, and ancient temples lent on copper-plate con…
- Indian post offices offer financial services including savings schemes, and their vast network reaches remote locations.
- Sukanya Samriddhi accounts, Kisan Vikas Patra accounts and National Savings Certificates are the three schemes named.
- Businesses in areas such as textiles and power are funded by the Industrial Finance Corporation of India.
~40 min · full explanation, examples & memory tricks in the app
4
Payments, shares and staying safe
Cash, cheques and cards give way to instant electronic transfer, and UPI since 2016 needs only a QR code. Shares are units of ownership traded at an exchange, and digital payment brings fraud to guard against.
- Payment modes include cash, cheques and debit cards, while a payment system such as UPI clears and settles transactions.
- Cash may be drawn by a withdrawal slip at the counter, or by debit card at an ATM, which works 24 hours and every day.
- An ATM needs the card inserted, the PIN entered, the exact amount typed, and then the cash collected.
~40 min · full explanation, examples & memory tricks in the app
❓ Leveled MCQ practice
Try the smart MCQs from this kit
140 questions laddered from warm-up to topper-level, each with an explanation. A taste:
A network of banks, payment systems and stock markets together has a name of its own. Described that way is the infrastructure called
Beginner
A physical
B financial
C social
D digital
Show answer & explanation
financial
It manages money.
Navdeep decided that one place in his house was not safe for 3,000 rupees a month. Judged unsafe by him was his
Beginner
A wallet
B shop counter
C cupboard
D office drawer
Show answer & explanation
cupboard
So he opened a deposit.
Made by Rima to get money for her bamboo business, after friends could not help enough, was a bank
Intermediate
A loan
B deposit
C transfer
D donation
Show answer & explanation
loan
From the surplus of a saver.
Collecting money from people as deposits and lending it to borrowers as loans is a financial
Intermediate
A settlement
B arrangement
C undertaking
D institution
Show answer & explanation
institution
That is a bank.
🃏 Flashcards
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Sequence Builder
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