Why do we need to expand formal sources of credit in India? -SST 10th

Why do we need to expand formal sources of credit in India? -SST 10th
by

1 Answer

Answer :

Formal sources of credit in India provide loans to individuals at far cheaper rates than informal sources of credit. This helps to increase their income and they are able to repay the principal amount as well as interest by parting with a small part of their higher income. It will lead to more production. This helps in the economic development of a country.
by

Related questions

Why do we need to expand formal sources of credit in India? Give three reasons. -SST 10th

Description : Why do we need to expand formal sources of credit in India? Give three reasons. -SST 10th

Last Answer : . The cost of informal loans is much higher and often leads to a debt trap. Also, people who might wish to start a new enterprise by borrowing may not do so because of the high cost ... important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.

Why do we need to expand formal sources of credit in India ? Give three reasons. -SST 10th

Description : Why do we need to expand formal sources of credit in India ? Give three reasons. -SST 10th

Last Answer : 1. The formal sector i.e. the banks and the cooperatives need to engage more in the lending activities because of the disadvantages posed by the informal sector including high rates of ... the development aspect of a country. Therefore, affordable credit is crucial for a country's development.

5. Why do we need to expand formal sources of credit in India? -Economics 10th

Description : 5. Why do we need to expand formal sources of credit in India? -Economics 10th

Last Answer : Formal sources of credit are the Government authorised organisations that are eligible to lend money to people. It is important to expand formal sources of credit in India because the informal sources are ... , people will be able to take loans and use them for the development of the country.

Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Description : Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Last Answer : There is a great need to expand formal sources of credit in rural India because there is no organization which supervises the credit activities of lenders in the informal sector. They lend at whatever interest rate they want and use unfair means of getting their money back.

Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Description : Prove with an argument that there is a great need to expand formal sources of credit in rural India. -SST 10th

Last Answer : To expand formal sources of credit in rural India, dependence on informal sources of credit has to be reduced.

Which are the two major sources of formal sector credit in India ? -SST 10th

Description : Which are the two major sources of formal sector credit in India ? -SST 10th

Last Answer : The two major sources of formal sector credit in India are - commercial banks and cooperative societies. We need to expand formal sources of credit due to following reasons : (a) Informal sources of ... -traps. (b) Formal sources of credit are cheaper and thus they help in country's development.

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 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.

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

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 :-

Which government body supervises the functioning of formal sources of loans in India ? -SST 10th

Description : Which government body supervises the functioning of formal sources of loans in India ? -SST 10th

Last Answer : The Reserve Bank of India supervises the functioning of formal sources of loans. Its functions are 1. Maintains a minimum cash balance to avoid cash shortages in the country. 2. Ensures that the banks ... information from the banks on how much they are lending, to whom, at what interest rate, etc.

Which government body supervises the functioning of formal sources of loans in India? Explain its functioning. -SST 10th

Description : Which government body supervises the functioning of formal sources of loans in India? Explain its functioning. -SST 10th

Last Answer : '1. The reserve bank of India supervises the functioning of formal sources of loans 2. The RBI monitors of banks in actually maintaining cash balance 3. The RBI sees that the bank give loans not just ... information to the RBI on how much they are lending ,to whom ,at what interest rate ,etc.

Which government body supervises the functioning of formal sources of loans in India? -SST 10th

Description : Which government body supervises the functioning of formal sources of loans in India? -SST 10th

Last Answer : The Reserve Bank of India (Reserve Bank of India) supervises the functioning of formal sources of loans in India. For instance, banks maintain a minimum cash balance out of the deposits they receive. Functions ... Bank of India on how much they are lending, to whom, at what interest rate, etc.

Which are the two major sources of formal sectors in India ? -SST 10th

Description : Which are the two major sources of formal sectors in India ? -SST 10th

Last Answer : The two major sources of formal sources of credit are: (i) Banks and (ii) Cooperatives. Need to expand formal sources of credit are : (i) To save the poor farmers and workers ... loan. (iii) Formal credit can fulfil various needs of the people through providing cheap and affordable credit.

Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Description : Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Last Answer : The Reserve Bank of India (RBI) supervises the functioning of the formal sources of loans i.e. the banks and cooperatives in order to ensure that the banks give loans not just to profitmaking businesses and traders but also to small scale industries and small borrowers etc.

Which body supervises the functioning of formal sources of loans ? -SST 10th

Description : Which body supervises the functioning of formal sources of loans ? -SST 10th

Last Answer : The Reserve Bank of India supervises the functioning of formal sources of loans.

Who supervises the functioning of formal sources of loan ? -SST 10th

Description : Who supervises the functioning of formal sources of loan ? -SST 10th

Last Answer : Reserve Bank of India (RBI).

Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Description : Why is the supervision of the functioning of formal sources of loans necessary ? -SST 10th

Last Answer : It is necessary because banks have to submit information to the RBI on how much they are lending, to whom they are lending and what interest rate, etc.

“The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

Description : “The rich households are availing cheap credit from formal lenders whereas the poor house holds have to pay a heavy price for borrowing.” -SST 10th

Last Answer : . The formal sector still meets only about half of the total credit needs of the rural people. . The remaining credit needs are met from informal sources. . Most loans from informal lenders ... the rich households who receive formal credit whereas the poor have to depend on the informal sources.

What are the two main reasons for formal credit not being available to the rural poor ? -SST 10th

Description : What are the two main reasons for formal credit not being available to the rural poor ? -SST 10th

Last Answer : The two main reasons for formal credit not being available to rural poor are : (i) Absence of collateral and documentation is the main reason which prevents rural poor from getting bank loans. ... (ii) Cheap and affordable credit for rural poors is important for the country's overall development.

Which segment of the society receives formal credit? -SST 10th

Description : Which segment of the society receives formal credit? -SST 10th

Last Answer : It is the richer segment of society which receives formal credit.

B) CaixaBank Explanation: As per the agreement, they will expand banks‘ guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local enterprises The banks will collaborate in areas of mutual interest such as syndicated loan business, guarantee transactions, trade finance and export credit agency finance, infrastructure finance and networking services, among others.

Description : B) CaixaBank Explanation: As per the agreement, they will expand banks guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local ... finance and export credit agency finance, infrastructure finance and networking services, among others.

Last Answer : Recently an Indian bank launched next generation features on its app „iMobile‟ which will enable customers to instantly pay taxes and book railway tickets within the app. Name the bank. A) Federal Bank B) Punjab National Bank C) Kotak Mahindra Bank D) ICICI Bank E) Bandhan Bank

By offering credit through its shops, Allied, the furniture and carpet retailer, is trying to get consumers to: A)decrease both disposable and discretionary income B)expand disposable income at the expense of discretionary income C)expand current buying power at the expense of future buying power D)expand both disposable income and wealth

Description : By offering credit through its shops, Allied, the furniture and carpet retailer, is trying to get consumers to: A)decrease both disposable and discretionary income B)expand disposable income ... current buying power at the expense of future buying power D)expand both disposable income and wealth

Last Answer : C)expand current buying power at the expense of future buying power

When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as___________ A. Consortium B. Syndication C. Multiple Banking D. Participation

Description : When more than one bank is allowing credit facilities to one party in coordination with each other under a formal arrangement, the arrangement is generally known as___________ A. Consortium B. Syndication C. Multiple Banking D. Participation

Last Answer : A. Consortium Explanation: A banking syndicate formed by multiple banks, often from different countries, for the singular purpose of financing a specific project that is too large for any individual ... in the risk and the profits. Upon completion of the project the consortium bank is disbanded.

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 are the two categories of sources of credit ? Mention four features of each. -SST 10th

Description : What are the two categories of sources of credit ? Mention four features of each. -SST 10th

Last Answer : The two sources of credit are: Formal Credit: 1. It's provided by banks and cooperatives. 2. Reserve Bank of India regulates the functioning of the formal sources of credit like the interest rate 3. ... get the money back. 4. Most of the times, lenders are poor farmers who fall into debt traps.

What are the various sources of credit in rural areas? Which one of them is the most dominant source of credit and why ? -SST 10th

Description : What are the various sources of credit in rural areas? Which one of them is the most dominant source of credit and why ? -SST 10th

Last Answer : In rural areas, there are both informal sources like moneylenders, traders, relatives etc. and formal sources of credit like commercial banks and cooperative societies. Informal sources are dominant: ... the previous loan. But usually, moneylenders only exploit the poor with high-interest rates.

What are the various sources of credit in rural areas? -SST 10th

Description : What are the various sources of credit in rural areas? -SST 10th

Last Answer : Various sources of credit in rural areas are : (i) Agricultural traders, (ii) Moneylenders, (iii) Commercial banks, (iv) Cooperative societies and (v) Relatives and friends. The most convenient source ... , livestock etc.) and uses this as a guarantee to the lender until the loan is repaid.

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.

What are the two categories of sources of credit? Mention four features of each. -SST 10th

Description : What are the two categories of sources of credit? Mention four features of each. -SST 10th

Last Answer : The two sources of credit are: Formal Credit: 1. It's provided by banks and cooperatives. 2. Reserve Bank of India regulates the functioning of the formal sources of credit like the interest rate 3. ... get the money back. 4. Most of the times, lenders are poor farmers who fall into debt traps.

Name the various sources of credit in Sonpur. -SST 10th

Description : Name the various sources of credit in Sonpur. -SST 10th

Last Answer : There are various sources of credit which are available in Sonpur. These are as follows: (i) Agricultural traders (ii) Cooperative societies (iii) Moneylenders (iv) Commercial banks (v) Relative and friends, etc.

“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.

What measures were adopted by the producers in India to expand the market for their goods in the nineteenth century? -SST 10th

Description : What measures were adopted by the producers in India to expand the market for their goods in the nineteenth century? -SST 10th

Last Answer : When Indian businessmen set up industries in the late 19 th century they avoided competing with Manchester goods in the Indian market.Since yarn was not an important part of British imports ... operated in India itself and when opportunities of investment in industries opened up, set up factories.

Do you think we should expand oil drilling in the United States?

Description : Do you think we should expand oil drilling in the United States?

Last Answer : We already do. We produce lots of natural gas and plenty of crude oil.

my wife and I would like to expand our home based daycare to a facility on our property.What steps do we take to obtain a license.Who do we contact to get started.?

Description : my wife and I would like to expand our home based daycare to a facility on our property.What steps do we take to obtain a license.Who do we contact to get started.?

Last Answer : You would need to go to the following government website for a free handbook that describes the steps needed to start a day care: nccic.acf.hhs.gov.

The name “best-first search” is a venerable but inaccurate one. After all, if we could really expand the best node first, it would not be a search at all; it would be a straight march to the goal. All we can do is choose the node that appears to be best according to the evaluation function. a) True b) False

Description : The name best-first search is a venerable but inaccurate one. After all, if we could really expand the best node first, it would not be a search at all; it would be a straight march to the ... is choose the node that appears to be best according to the evaluation function. a) True b) False

Last Answer : a) True

Explain the methods used by producers to expand their markets in the 19th century. -SST 10th

Description : Explain the methods used by producers to expand their markets in the 19th century. -SST 10th

Last Answer : (i) Advertisement : Advertisements through newspapers, magazines, hoarding; were the most important method used by the producers to expand the market. It played a major role in expanding ... that Indians produce. Finally, advertisements became a vehicle of the nationalist message of Swadeshi.

Now the Indian and British manufacturers tried to expand their market ? -SST 10th

Description : Now the Indian and British manufacturers tried to expand their market ? -SST 10th

Last Answer : They tried to expand their market through advertisements.

What is the importance of advertisement? How advertisement was used by the Britishers to expand the market for their products? -SST 10th

Description : What is the importance of advertisement? How advertisement was used by the Britishers to expand the market for their products? -SST 10th

Last Answer : (i) Advertisements make products appear desirable and necessary. Advertisement shape the minds of people and create new needs. (ii) They help in forming a new consumer culture. (iii) When Manchester ... ' written in bold on the label, they were expected to feel confident about buying the cloth.

Why did the population of London expand from the middle of the eighteenth century? -SST 10th

Description : Why did the population of London expand from the middle of the eighteenth century? -SST 10th

Last Answer : (i) The city of London was a powerful magnet for migrant populations. It was a city of clerks,shopkeepers, skilled and semi-skilled artisans, soldiers, servants and beggars. It was ... World War London began manufacturing motor cars and electrical goods and number of large factories multiplied.

Why did the population of London city expand over the 19th century? -SST 10th

Description : Why did the population of London city expand over the 19th century? -SST 10th

Last Answer : The population of London multiplied four fold in the 70 years between 1810 and 1880 increasing from 1 million to 4 millions. (i) London was a powerful magnet for migrant population, even though ... the number of large factories increased and a large number of people joined the newly created jobs.

How would you like to expand the definition of democracy ? -SST 10th

Description : How would you like to expand the definition of democracy ? -SST 10th

Last Answer : Definition of democracy shall be expanded by adding following features: (i) The government elected by the people must take all the decisions. (ii) Elections must offer a choice and fair opportunity ... must lead to a government limited by the basic rules of the constitution and citizen's rights.

B) American Express Explanation: India‘s largest lender State Bank of India (SBI) and American Express have entered into alliance to expand AmEx card acceptance in India.

Description : B) American Express Explanation: India‘s largest lender State Bank of India (SBI) and American Express have entered into alliance to expand AmEx card acceptance in India.

Last Answer : RBI has launched new restructuring tool S4A to raise banks moral hazard risk. What is it? A) Scheme for Systematic Structuring of Stressed Assets B) Scheme for Sustainable Structuring of ... Structuring of Scholastic Assets D) Scheme for Sustainable Strength of Stressed Assets E) None of these

There is a pressing need for using renewable energy sources in India.' Justify the statement. -SST 10th

Description : There is a pressing need for using renewable energy sources in India.' Justify the statement. -SST 10th

Last Answer : 1. Energy, the basic requirement of our everyday lives as well as the national economy constitutes the necessity of this input in every aspect. 2. The developmental plans since ... caused serious environmental problems which strongly points towards the need to use renewable sources of energy.

Why is there a pressing need to use non-conventional sources of energy in India ? Explain any three reasons. -SST 10th

Description : Why is there a pressing need to use non-conventional sources of energy in India ? Explain any three reasons. -SST 10th

Last Answer : There is an urgent need to use non-conventional sources of energy like solar energy, wind, tide, biomass, and energy from waste material in India because of the following reasons ... The increased use of fossil fuels hampers the environment and causes serious environmental problems and degradation.

There is a pressing need for using renewable energy sources in India.' Justify the statement. -SST 10th

Description : There is a pressing need for using renewable energy sources in India.' Justify the statement. -SST 10th

Last Answer : Need to use Renewable Energy Sources are: (i) The growing consumption of energy has resulted in the country becoming increasingly dependent on fossil fuels such as coal, oil and gas. (ii) ... to use renewable energy sources like solar energy, wind, tide, biomass and energy from waste material.