Advertisements
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Compare formal sector loans with informal sector of loans regarding interest only.
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.
The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.
|
Occupations |
Reason for needing a Loan |
|
Construction worker |
- |
|
Graduate student who is computer literate |
- |
|
A person employed in government service |
- |
|
Migrant labourer in Delhi |
- |
|
Household maid |
- |
|
Small trader |
- |
|
Autorickshaw driver |
- |
|
A worker whose factory has closed down |
- |
Next, classify the people into two groups based on whom you think might get a bank loan and those who might not. What is the criterion that you have used for classification?
“Credit can play a negative role.” Justify the statement with arguments.
Explain the importance of formal sector loans in India.
Answer the following question.
Give any two examples of the informal sector of credit.
Answer the following question.
Why is cheap and affordable credit important for the country's development? Explain any three reasons.
