NCERT Solutions for Class 7th Social Science Chapter 20 Banks and the Magic of Finance
Updated on 2026-09-19
About this chapter
Financial infrastructure is “a network of banks, payment systems, stock markets, and other financial institutions that help people, businesses, and the government facilitate financial transactions and manage money”. Chapter 19 was about physical infrastructure — roads, railways, telecom. This chapter is about the money side. Physical infrastructure moves goods and people; financial infrastructure moves money , and also pays for the physical infrastructure itself. A bank has two faces, and they are joined. It holds deposits — money people put in, kept safe and earning interest — and it offers loans out of that same money. Navdeep deposits ₹3000 of his salary; Rima, who makes bamboo products, borrows what she needs. The bank stands between them. It offers three kinds of accounts: a savings a
- Chapter opening
- Introduction
- Fig. 8.2, inside a bank branch
- End of ‘Other Financial Institutions’
- Temples as the banks of ancient India
- UPI beyond India’s borders
- After the account of share prices, booms and crashes
- The chapter in two points
- End-of-chapter exercise
Exercises
- Chapter opening — The Big Questions Page 193
- Introduction — In-text Questions Page 194
- Fig. 8.2, inside a bank branch — LET’S EXPLORE Page 194
- After the story of Navdeep’s deposit and Rima’s loan (Fig. 8.3) — THINK ABOUT IT Page 196
- After the compounding example and the story of the king and the sage — THINK ABOUT IT Page 198
- End of ‘Other Financial Institutions’ — In-text Question Page 201
- Temples as the banks of ancient India — THINK ABOUT IT Page 202
- After the UPI transaction between Kumar and Piyush (Fig. 8.18) — In-text Question Page 207
- UPI beyond India’s borders — THINK ABOUT IT Page 207
- After the account of share prices, booms and crashes — THINK ABOUT IT Page 209
- The chapter in two points — Before we move on … Page 210
- End-of-chapter exercise — Questions and activities Page 211–212