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प्रश्न
Answer the following question.
Describe the importance of formal sources of credit in economic development.
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उत्तर
Formal sources of credit are beneficial in the sense that they provide credit at reasonable rates without any undue exploitative practices as faced under informal sources of credit. For instance, taking credit from informal sources can have serious repercussions in the form of exorbitant rates of interest, high mortgage obligations, etc. Formal sources of credit are organized and from such exploitative practices.
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संबंधित प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
Compare formal sector loans with informal sector of loans regarding interest only.
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.
Majority of the credit needs of the ______ households are met from informal sources.
______ costs of borrowing increase the debt-burden.
How can the problem of unemployment be eradicated in India? Explain any three ways.
“Credit can play a positive role.” Justify the statement with arguments.
Explain any three reasons for the banks and cooperative societies to increase their lending facilities in rural areas.
Answer the following question.
Why is cheap and affordable credit important for the country's development? Explain any three reasons.
