Advertisements
Advertisements
प्रश्न
In situations with high risks, credit might create further problems for the borrower. Explain.
Advertisements
उत्तर
In situations with high risks, credit might create further problems for the borrower. This is also known as a debt-trap. Taking credit involves an interest rate on the loan, and if this is not paid back, then the borrower is forced to give up their collateral or asset used as the guarantee to the lender. Thus, in situations with high risks, if the risks affect a borrower badly, then he ends up losing more than he would have without the loan.
APPEARS IN
संबंधित प्रश्न
How does money act as a medium of exchange?
How do money and muscle power play an important role in elections? Explain.
How can money easily exchange it for goods or services? Give example to explain.
Describe the vital and positive role of credit with examples.
Why one cannot refuse a payment made in rupees in India?
Which one of the following is the appropriate meaning of collateral?
Explain with examples how people are involved with the banks.
How does money solve the problem of double coincidence of wants? Explain with an example of your own.
Analyse the role of credit for development.
Explain the meaning of 'Currency'.
