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प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
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उत्तर
Credit plays a pivotal role in the economic and infrastructural development of a country. Credit institutions like banks and other informal establishments provide loans to credit seekers which may include private individuals as well as national governments. Such aid provides reinforcement for production and an increase in profits as well as employment. For example, developing countries like Bangladesh and Brazil borrow heavily from international financial institutions like World Bank. This provides the necessary financial push for their various infrastructure projects and industrial expansion initiatives.
संबंधित प्रश्न
Which one of the following is a formal source of credit?
Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.
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.
“Credit can play a positive 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 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.
