“The credit activities of the informal sector should be discouraged.” -SST 10th

“The credit activities of the informal sector should be discouraged.” -SST 10th
by

1 Answer

Answer :

The credit activities of the informal sector should be discouraged because: . 85% of loans taken by the poor households in the urban areas are from informal sources. . Informal lenders charge very high interest on their loans. . They try to charge more and more interest on their loans. . There are no boundaries and restrictions. . Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan. . In certain cases, the high interest rate for borrowing can mean that the amount to be repaid is greater than the income of the borrower. . This could lead to increasing debt and debt trap, therefore the credit activities of the informal sector should be discouraged.
by

Related questions

The credit activities of the informal sector should be discouraged.' Support the statement with arguments. -SST 10th

Description : The credit activities of the informal sector should be discouraged.' Support the statement with arguments. -SST 10th

Last Answer : The credit activities of the informal sector should be discouraged due to the following reasons - 1. There is no organization which supervises the credit activities of lenders in the informal ... Therefore, the formal sector needs to play an increasing role in extending the facilities of credit.

Why do the rural borrowers depend on the informal sector for credit? -SST 10th

Description : Why do the rural borrowers depend on the informal sector for credit? -SST 10th

Last Answer : The rural borrowers depend on the informal sector for credit because : (i) Absense of collateral and documentation with rural borrowers. (ii) Flexible loans in term of timelines, interest rates, procedural ... the group is regular in savings for year or two, it can avail loan from the bank.

Why does the formal or informal sector ask for a collateral? -SST 10th

Description : Why does the formal or informal sector ask for a collateral? -SST 10th

Last Answer : . Every loan agreement specifies an interest rate which the borrower must pay to the lender along with the repayment of the principal. . In addition, lenders may demand a collateral or an asset ... and the mode of repayment are the terms of credit required for formal or informal sectors for loans.

Compare formal sector loans with an informal sector of loans regarding interest only. -SST 10th

Description : Compare formal sector loans with an informal sector of loans regarding interest only. -SST 10th

Last Answer : The loans given by the formal sector have low rates of interest whereas the loans given by the informal sector have very high rates of interest.

Mention any three points of distinction between formal sector loan and informal sector loan. -SST 10th

Description : Mention any three points of distinction between formal sector loan and informal sector loan. -SST 10th

Last Answer : Three points of distinction between Formal sector loan and Informal sector loan

Explain any two features each of formal sector loans and informal sector loans. -SST 10th

Description : Explain any two features each of formal sector loans and informal sector loans. -SST 10th

Last Answer : Formal Sector Loans : Formal sector loans include loans from banks and cooperatives. Features of formal sector loans are : (i) Formal sectors provide cheap and affordable loans and their ... the borrowers personally, and hence they provide loans on easy terms without collateral and documentation.

Explain any two features each of formal sector loans and informal sector loans. -SST 10th

Description : Explain any two features each of formal sector loans and informal sector loans. -SST 10th

Last Answer : Formal Sector Loans (i) It provides loans at a fixed rates and terms. (ii) It gives loans not just to profit-making businesses and traders but also to small cultivators, small-scale industries to small ... choose. (ii) There is no one to stop them from using unfair means to get their money back.

“Most of the poor households still depend on the informal sector for loans, both in rural and urban areas of India”. Support the statement with three examples. -SST 10th

Description : “Most of the poor households still depend on the informal sector for loans, both in rural and urban areas of India”. Support the statement with three examples. -SST 10th

Last Answer : '(i) Banks are not present everywhere in rural India. Even when they are present, getting a loan from a bank is much more difficult than taking a loan from informal sources. ... collateral. The borrowers can, if necessary, approach the moneylenders even without repaying their earlier loans.

Mention three points of difference between formal sector and informal sector loans. -SST 10th

Description : Mention three points of difference between formal sector and informal sector loans. -SST 10th

Last Answer : Formal sector loans: (i) Loans from banks and cooperatives. (ii) Under supervision of the Reserve Bank of India. (iii) Reasonable rates of interest. Informal sector loans: (i) Loans from ... friend, traders, etc. (ii) No supervision of any institution. (iii) Very high rates of interest.

Explain any two features each of formal sector loans and informal sector loans. -SST 10th

Description : Explain any two features each of formal sector loans and informal sector loans. -SST 10th

Last Answer : Formal Sector Loans: Include loans from banks and cooperatives. Features of formal sector loans are: (i) Formal sectors provide cheap and affordable loans and their rate of interest are ... the borrowers personally, and hence they provide loans on easy terms without collateral and documentation.

The self-employed in a developing country who are engaged in small scale labour intensive work belong to the - (1) Informal sector (2) Primary sector (3) Secondary sector (4) Tertiary sector

Description : The self-employed in a developing country who are engaged in small scale labour intensive work belong to the - (1) Informal sector (2) Primary sector (3) Secondary sector (4) Tertiary sector

Last Answer : (2) Primary sector Explanation: Such a scenario is seen in the case of primary economic activities such as agriculture in the developing countries like India. Most of the primary activities are labour ... volume of man-power substitutes the lack of technology. Besides, farmers are 'self-employed.'

The self-employed in a developing country who are engaged in small scale labour intensive work belong to the (1) Informal sector (2) Primary sector (3) Secondary sector (4) Tertiary sector

Description : The self-employed in a developing country who are engaged in small scale labour intensive work belong to the (1) Informal sector (2) Primary sector (3) Secondary sector (4) Tertiary sector

Last Answer : Primary sector

Although planning provides numerous benefits, some managers do not use formal marketing plans because A)formal plans are not necessary to control marketing activities. B)they think planning is a waste of time. C)they prefer to use informal marketing control. D)they spend almost all their time dealing with daily problems. E)they spend most of their time engaged in environmental scanning.

Description : Although planning provides numerous benefits, some managers do not use formal marketing plans because A)formal plans are not necessary to control marketing activities. B)they think planning is a waste ... dealing with daily problems. E)they spend most of their time engaged in environmental scanning.

Last Answer : D)they spend almost all their time dealing with daily problems.

What are differences between formal and informal sources of credit? -SST 10th

Description : What are differences between formal and informal sources of credit? -SST 10th

Last Answer : Formal sources: 1.These sources of credit are registered by the government and have to follow its rules and regulations. 2.RBI supervises the functioning of formal sources of credit. 3.They ... main motive is profit-making. Example: Moneylenders, traders, employees, relatives and friends, etc.

Why are poor households still dependent on informal sources of credit? -SST 10th

Description : Why are poor households still dependent on informal sources of credit? -SST 10th

Last Answer : Reasons: . Banks are not present everywhere in rural India. . Even if they are present, getting a loan from a bank is much more difficult than taking a loan from informal sources. ... charge very high rates of interest, keep no records of the transactions and harass the poor borrowers.

“Poor households still depend on informal sources of credit.” -SST 10th

Description : “Poor households still depend on informal sources of credit.” -SST 10th

Last Answer : Poor Households still depend on informal sources of credit because:- . Banks are not present everywhere on rural area. . Even when they are present getting a loan from the bank is much more ... money lenders they know the borrowers personally and they are willing to give a loan without collateral.

What is the main informal source of credit for rural households in India ? -SST 10th

Description : What is the main informal source of credit for rural households in India ? -SST 10th

Last Answer : The main informal source of credit is moneylenders for the rural households in India.

Differentiate between formal and informal sources of credit. -SST 10th

Description : Differentiate between formal and informal sources of credit. -SST 10th

Last Answer : Difference between Formal and Informal Sources

Mention four characteristics each of the formal and informal sources of credit in India. -SST 10th

Description : Mention four characteristics each of the formal and informal sources of credit in India. -SST 10th

Last Answer : Features of formal sources of credit are : (a) Formal sources of credit are provided by banks and cooperative societies to the borrowers. (b) Reserve Bank of India (RBI) governs the ... . (d) They generally charge higher rates of interest and exploit the borrowers for their own benifits.

What is necessary to reduce the dependence on informal sources of credit in rural areas? -SST 10th

Description : What is necessary to reduce the dependence on informal sources of credit in rural areas? -SST 10th

Last Answer : It is necessary that banks and cooperatives increase their lending in the rural areas.

What are the drawbacks of informal sources of credit? -SST 10th

Description : What are the drawbacks of informal sources of credit? -SST 10th

Last Answer : (i) Most of the informal lenders charge a much higher interest on loans. Thus the cost to the borrower of the informal loans is much higher. (ii) Higher cost of borrowing means a larger part of ... might wish to start an enterprise by borrowing may not do so because of the high cost of borrowing.

Differentiate between formal and informal sources of credit. Explain problems faced by borrowers of loan from informal sources. -SST 10th

Description : Differentiate between formal and informal sources of credit. Explain problems faced by borrowers of loan from informal sources. -SST 10th

Last Answer : The moneylenders charge very high rates of interest keep no records of transactions and harass the poor borrowers.

Explain the differences between Formal and Informal Sources of Credit. -SST 10th

Description : Explain the differences between Formal and Informal Sources of Credit. -SST 10th

Last Answer : The differences between Formal and Informal Sources of Credit are :-

“Most of the poor households are still dependent on informal sources of credit.’’ -SST 10th

Description : “Most of the poor households are still dependent on informal sources of credit.’’ -SST 10th

Last Answer : (i) Banks are not present everywhere in rural India, whereas informal sources are easily available in all villages. (ii) Getting a loan from a bank is much more difficult for poor ... relatives, or traders and landlords, who know the borrowers personally and therefore do not demand collateral.

Why should the use of cattle cake as fuel be discouraged ? -SST 10th

Description : Why should the use of cattle cake as fuel be discouraged ? -SST 10th

Last Answer : The use of cattle dung cakes is discouraged because it consumes the most valuable manure which could be used in agriculture,

Why is using dung cake being discouraged? -SST 10th

Description : Why is using dung cake being discouraged? -SST 10th

Last Answer : Using dung cake is being discouraged because it consumes most valuable manure which could be used in agriculture.

Why should the use of cattle cake as fuel be discouraged? -SST 10th

Description : Why should the use of cattle cake as fuel be discouraged? -SST 10th

Last Answer : The use of cattle cake as fuel should be discouraged because: (i) It creates pollution. (ii) It consumes most valuable manure which could be used in agriculture.

20. Give a few examples of public sector activities and explain why the government has taken them up. -SST 10th

Description : 20. Give a few examples of public sector activities and explain why the government has taken them up. -SST 10th

Last Answer : Example of credit as an asset: During the festival season, a shoe manufacturer has received an - order of making shoes in bulk, within a month's time. To complete production, he hired some ... whereas in farmer's case credit pushes the borrower into a situation from which recovery is very painful.

Why has the government taken up the responsibility of public sector activities in a country like India? Explain any three reasons. -SST 10th

Description : Why has the government taken up the responsibility of public sector activities in a country like India? Explain any three reasons. -SST 10th

Last Answer : This answer was deleted by our moderators...

Give a few examples of public sector activities and explain why the government has taken them up. -SST 10th

Description : Give a few examples of public sector activities and explain why the government has taken them up. -SST 10th

Last Answer : Construction of roads, bridges, railways, harbours, generating electricity, providing irrigation through dams, health, education etc. are a few examples of public sector activities Government has taken up these ... these industries can afford. So the government has to bear a part of the cost.

Write three activities which belong to the primary sector. -SST 10th

Description : Write three activities which belong to the primary sector. -SST 10th

Last Answer : Agriculture, dairy and mining.

How is tertiary sector different from the other two sectors of economic activities? -SST 10th

Description : How is tertiary sector different from the other two sectors of economic activities? -SST 10th

Last Answer : Tertiary sector is different from other two sectors because: (i) It does not provide or produce goods. (ii) It provides services such as transport, I.T., communications, etc. (iii) ... the sectors. (iv) More the primary and secondary sectors develop, there increases the requirement of services.

Should Catholic baptisms of infants be discouraged?

Description : Should Catholic baptisms of infants be discouraged?

Last Answer : answer:Baptism is not just for Catholics. I don’t think it should be discouraged. Parents give their children guidance as they feel is appropriate with their children and then when the child is old enough, they are free to change religions if they want to.

My weight loss has slowed, I am discouraged and looking for advice?

Description : My weight loss has slowed, I am discouraged and looking for advice?

Last Answer : You haven't gained weight, so that is a huge motivator. It really sounds like you have done all the right things, so you are just at a standstill with your weight loss. Why don't you ... fun things that are also exercise such as swimming, biking, and hiking. Congratulations on all your hard work.

I have a family member who has been looking for work for three months now and isn't having much luck. They're feeling rather discouraged. What do I say to them?

Description : I have a family member who has been looking for work for three months now and isn't having much luck. They're feeling rather discouraged. What do I say to them?

Last Answer : The job situation is pretty bad worldwide, so tell them they are not alone. Just be there for them, and perhaps help them in their search. Do you know of any vacancies that they could apply ... be there for them, and encourage them to continue searching. The right job will come along eventually.

What should I do if I get discouraged easily?

Description : What should I do if I get discouraged easily?

Last Answer : Multi tasking has been shown to actually lower our intelligence. From Slashdot and news for Nerds: Multitasking messes with the brain in several ways. At the most basic level, the mental balancing acts that ... when you do it won't be work but you'll have to actually discipline yourself to stop.

How to really finish up all musical ideas in head, without getting discouraged,overwhelmed,or procrastinate?

Description : How to really finish up all musical ideas in head, without getting discouraged,overwhelmed,or procrastinate?

Last Answer : I'm an artist, I'm an audio creator and editor, and I'm also a perfectionist, so here's my thoughts. I think you need to take it slowly, instead of finishing all the songs, finish one ... linearly but express melodies first and let lyrics come to you second, you will feel less stress in your craft.

How do you motivate yourself? How do you pick yourself up when discouraged?

Description : How do you motivate yourself? How do you pick yourself up when discouraged?

Last Answer : I’d get him involved in your daily routine as much as his age permits. He’ll see how hard you work for him.

What was used to discouraged the protesters involved in the Montgomery bus boycott?

Description : What was used to discouraged the protesters involved in the Montgomery bus boycott?

Last Answer : Violence against the boycott leaderArrest of the boycott leaderAppeal of a federal court decision supporting the boycott

What factors might have discouraged American from traveling to Oregon?

Description : What factors might have discouraged American from traveling to Oregon?

Last Answer : Some people may not have been willing or able to walk 15 miles aday for four to six months. Some might have had other obligationsthat they could not go.

Why should talking be discouraged during weighing of bacteriological Media?

Description : Why should talking be discouraged during weighing of bacteriological Media?

Last Answer : Talking is discouraged because each time we speak there is droplets of saliva and the mouth houses a lot of normal Floras which will definitely contaminate our Media.

Which of these actions would be encouraged under a capitalist system but discouraged under a mercantilist system?

Description : Which of these actions would be encouraged under a capitalist system but discouraged under a mercantilist system?

Last Answer : This image will answer your question sir.

Working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the working papers from, being subpoenaed. b. Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit. c. Provide the basis for excluding admission of the working papers as evidence because of the privileged communication rule. d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.

Description : Working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the ... d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.

Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit.

The working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the working papers from being subpoenaed. b. Provide the basis for excluding admission of the working papers as evidence because of the privileged communication rulec. Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit. d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged.

Description : The working papers prepared by a CPA in connection with an audit engagement are owned by the CPA, subject to certain limitations. The rationale for this rule is to a. Protect the ... d. Establish a continuity of relationship with the client whereby indiscriminate replacement of CPAs is discouraged

Last Answer : Provide the CPA with evidence and documentation which may be helpful in the event of a lawsuit

Which of the following is required if the professional accountant uses experts who are not professional accountants? a. The professional accountant is discouraged to engage the services of experts who are not a professional accountant. b. The ultimate responsibility for the professional service is assumed by the expert who is not a professional accountant. c. The professional accountant must take steps to see that such experts are aware of the ethical requirements of the profession. d. Experts who are not professional accountants need not be informed of ethical requirements because they are not members of the Accountancy profession

Description : Which of the following is required if the professional accountant uses experts who are not professional accountants? a. The professional accountant is discouraged to engage the services of experts ... not be informed of ethical requirements because they are not members of the Accountancy profession

Last Answer : The professional accountant must take steps to see that such experts are aware of the ethical requirements of the profession.

7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly between 1973 and 1996 c. Because of discouraged workers, the official unemployment rate is too high d. “Full employment” occurs when there is no frictional unemployment

Description : 7. Which of the following statements is/are true? a. Business Investment Spending occurs when individuals buy stock in the stock market b. Productivity is the United States grew very slowly ... unemployment rate is too high d. Full employment occurs when there is no frictional unemployment

Last Answer : b. Productivity is the United States grew very slowly between 1973 and 1996

Why is the use of large value capacitors in filter circuits discouraged?

Description : Why is the use of large value capacitors in filter circuits discouraged?

Last Answer : Expense

Why is the use of large value capacitors in filter circuits discouraged?

Description : Why is the use of large value capacitors in filter circuits discouraged?

Last Answer : Expense

I didn't want to go to the exhibition but Leena twisted my arm. (1) forced me (2) teased me (3) fought with me (4) discouraged me

Description : I didn't want to go to the exhibition but Leena twisted my arm. (1) forced me (2) teased me (3) fought with me (4) discouraged me

Last Answer : (1) forced me

Why are local variable names beginning with an underscore discouraged? a) they are used to indicate a private variables of a class b) they confuse the interpreter c) they are used to indicate global variables d) they slow down execution

Description : Why are local variable names beginning with an underscore discouraged? a) they are used to indicate a private variables of a class b) they confuse the interpreter c) they are used to indicate global variables d) they slow down execution

Last Answer : Answer: a Explanation: As Python has no concept of private variables, leading underscores are used to indicate variables that must not be accessed from outside the class.