Advertisements
Advertisements
प्रश्न
“Credit can play a positive role.” Justify the statement with arguments.
उत्तर
Festival Season It is festival season two months from now and the shoe manufacturer, Salim, has received an order from a large trader in town for 3,000 pairs of shoes to be delivered in a month time. To complete production on time, Salim has to hire a few more workers for stitching and pasting work. He has to purchase the raw materials. To meet these expenses, Salim obtains loans from two sources. First, he asks the leather supplier to supply leather now and promises to pay him later. Second, he obtains loan in cash from the large trader as advance payment for 1000 pairs of shoes with a promise to deliver the whole order by the end of the month. At the end of the month, Salim is able to deliver the order, make a good profit, and repay the money that he had borrowed.
In above situation credit helps to increase earnings and therefore the person is better off than before.
APPEARS IN
संबंधित प्रश्न
Compare formal sector loans with informal sector of loans regarding interest only.
How do banks mediate between those who have surplus money and those who need money?
Majority of the credit needs of the _________ households are met from informal sources.
__________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?
How can the problem of unemployment be eradicated in India? Explain any three ways.
“Credit can play a negative role.” Justify the statement with arguments.
Answer the following question.
Describe the importance of formal sources of credit in economic development.
Explain any three reasons for the banks and cooperative societies to increase their lending facilities in rural areas.
Answer the following question.
Give any two examples of the informal sector of credit.
