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प्रश्न
Answer the following question.
Describe the importance of formal sources of credit in economic development.
उत्तर
Formal sources of credit are beneficial in the sense that they provide credit at reasonable rates without any undue exploitative practices as faced under informal sources of credit. For instance, taking credit from informal sources can have serious repercussions in the form of exorbitant rates of interest, high mortgage obligations, etc. Formal sources of credit are organized and from such exploitative practices.
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संबंधित प्रश्न
Which one of the following is a formal source of credit?
How do banks mediate between those who have surplus money and those who need money?
Why do we need to expand formal sources of credit in India?
__________costs of borrowing increase the debt-burden.
How can the problem of unemployment be eradicated in India? Explain any three ways.
“Credit can play a positive role.” Justify the statement with arguments.
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Explain the importance of formal sector loans in India.
Explain any three reasons for the banks and cooperative societies to increase their lending facilities in rural areas.
Answer the following question.
Why is cheap and affordable credit important for the country's development? Explain any three reasons.
