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प्रश्न
"Cheap and affordable credit is crucial for the country's development." Assess the statement.
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उत्तर
Cheap and affordable credit is crucial for the country's development due to the following factors:
- More lending would lead to higher incomes and encourage people to grow crops, do business and set up small scale industries.
- Cheap credit means more income is left with the borrower to reinvest rather than return as interest. This leads to acceleration of economic activity.
- Cheap credit would also allow weaker sections of society to enter formal sector of lending and rid them of exploitation.
- Affordable credit would also end the cycle of debt trap and lead to sustainable economic activity that would allow borrowers to invest in better technology to make their business more competitive.
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संबंधित प्रश्न
Which of the following is not an informal source of credit?
Which households take more loans from the formal sector?
Which one of the following is the main source of credit for the rich households?
Formal Sources of credit include ______.
Identify the formal source of credit.
Rate of interest charged by moneylenders as compared to that charged by banks is ______.
Loans from banks and cooperatives are called ______.
Cheap and affordable credit is crucial for ______.
About 85 percent of the loans taken by poor households in the urban areas are from ______.
Explain the significance of The Reserve Bank of India in the Indian economy.
