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प्रश्न
______ costs of borrowing increase the debt-burden.
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उत्तर
High costs of borrowing increase the debt-burden.
Explanation:
When interest rates or financing fees rise, a larger portion of each payment is used to service the interest rather than pay down the principal balance. This extends the time required to pay off the debt and dramatically raises the overall amount owing, putting further financial hardship on the borrower.
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संबंधित प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.
Why do we need to expand formal sources of credit in India?
Majority of the credit needs of the ______ households are met from informal sources.
“Credit can play a positive role.” Justify the statement with arguments.
“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.
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Explain the importance of formal sector loans in India.
Answer the following question.
Why is cheap and affordable credit important for the country's development? Explain any three reasons.
