What is financial infrastructure?

The network of banks, payment systems and stock markets that helps manage money

What are the main things a bank does?

Holds deposits and lends money as loans

How do banks make money?

They pay lower interest on deposits and charge higher interest on loans

Earning interest on previous interest as well as on the original amount

What does democracy mean?

Democracy is best understood as the 'rule of the people', meaning that the source of power and authority lies with the people of the country.

How does direct democracy differ from representative democracy?

In a direct democracy all citizens take part in decisions directly, which is hard in large countries; in a representative democracy people elect representatives to govern on their behalf.

What is the difference between parliamentary and presidential democracy?

In a parliamentary democracy like India the executive is drawn from the legislature, while in a presidential democracy the president is separately elected and the executive works independently of the legislature.

What were the early republics in India?

In mahajanapadas like Vajji, especially the Lichchhavi clan, leaders were chosen by merit and key positions filled through elections, making them early republics.

What do the Uttaramerur inscriptions tell us?

These 10th-century Chola inscriptions from Tamil Nadu describe village sabha elections, including sealed ballot boxes, qualifications and duties of members, and conditions such as corruption that could lead to dismissal.

What is the difference between absolute and constitutional monarchy?

In an absolute monarchy the monarch holds complete power over making, enforcing and judging laws, while in a constitutional monarchy the monarch has only nominal power and real power lies with an elected parliament and prime minister.

A form of government where the country is ruled by the rules of religion and by religious leaders, as in Iran, whose Supreme Leader holds ultimate authority.

Why is democracy widely considered better than other forms?

Because it provides universal adult franchise, equality, freedom of speech, separation of powers and a focus on the wellbeing of all citizens, and lets people change their representatives through elections.

From the Rulers to the Ruled: Types of Governments

Q: What are the three functions of government?

The legislative function of making rules, the executive function of implementing them and administering the country, and the judicial function of ensuring the rules are followed.

Q: What are some fundamental principles of democracy?

Equality, freedom, representative participation, universal adult franchise, fundamental rights of citizens and an independent judiciary.

Class 7 Social Science · Exploring Society Part 1 · Chapter 9

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CBSE Class 7 · Social ScienceTrending

12 chapters: landforms to markets

Marks booster + cheatsheet: key concepts in 2 lines each
Magadha to the Mauryas and Aśhoka, Ch 5
Articles of the Constitution, Ch 10
Types of government, Ch 9
Weather and climates of India, Ch 2–3
Barter to money, Ch 11

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8 chapters: farming to banks

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Crops, seasons and soils, Ch 1
Land and maritime neighbours, Ch 2
Harṣha and the Tripartite Struggle, Ch 3
Ghaznavids, Cholas and Ghūrids, Ch 4
Communities that made India home, Ch 5

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Summary

This chapter explores what government is and the different forms it takes around the world. Government performs three functions: making rules (legislative), implementing them (executive) and ensuring they are followed (judicial). Using a school student-committee example, the chapter shows why choosing representatives through voting is a democratic way to organise things. It explains that governments differ in who gives them authority, how they are formed, what their parts do, and what goals they pursue. Democracy, the 'rule of the people', is the most popular form today and rests on principles like equality, freedom, representative participation, universal adult franchise, fundamental rights and an independent judiciary. The chapter distinguishes direct democracy (as in parts of Switzerland) from representative democracy, and within the latter, parliamentary democracy (where the executive comes from the legislature, as in India) from presidential democracy (where the president is separately elected). It looks back at early republics like the Vajji mahajanapada and the Uttaramerur inscriptions describing Chola village elections. It then surveys other forms of government — monarchy (absolute and constitutional), theocracy, dictatorship (with examples like Hitler and Idi Amin) and oligarchy — and explains, through comparison, why democracy is widely considered a better form of government, while noting that even democracies face challenges.

Functions of governmentPrinciples of democracyForms of democracyEarly republics in IndiaMonarchy, theocracy, dictatorship and oligarchy

Key terms

Democracy

A form of government understood as the 'rule of the people', where the people are the source of power and authority.

Universal adult franchise

The right of every citizen above a certain age to vote and choose their representatives.

Parliamentary democracy

A representative democracy where members of the executive, like the prime minister and ministers, are also part of the legislature.

Presidential democracy

A representative democracy where the executive, headed by a president elected by the people, works independently of the legislature.

Monarchy

A government ruled by a monarch (king or queen), usually hereditary; it may be absolute or constitutional.

Separation of powers

The principle that the legislature, executive and judiciary work independently and do not interfere in one another's functions.

From the Rulers to the Ruled: Types of Governments

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Summary

Key terms

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