Ask a Doubt
Request a call back

Join NOW to get access to exclusive study material for best results

CBSE Class 10 Answered

Why is cheap and affordable credit important for the country’s development? Give three reasons.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
answered-by-expert Expert Answer

Three reasons why cheap and affordable credit is important for the country’s development are as listed below:

  1. When money is borrowed at high rate of interest, a larger part of income is spent on repaying the debt and a small part of earning is left for the fulfillment of one’s needs. This may result into low standard of living.

  2. In case of high interest rates, the amount of money to be repaid keeps on accumulating faster than the income of the borrower. This can lead to an increase in debts.

  3. Many a times, people who want to start a small business of their own may not do so due to high rate of interests charged on loans.
Answered by | 03 Jul, 2014, 12:09: PM

Application Videos

Multiple Choice Questions Practice Test
Answered Unanswered My Questions My Answers
CBSE 10 - Economics
How is money used as a medium of exchange? Explain with examples.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Which government body supervises the functioning of formal sources of loans in India? Explain any two of its functions.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Why is cheap and affordable credit important for the country’s development? Give three reasons.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
What is ‘collateral’?
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Explain any four terms of credit with examples.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Explain any four advantages of ‘Self Help Groups’ for the poor.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Why the deposits in the bank are called the demand deposits? What are the benefits of deposits with the banks?
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
What are the two main groups of credit for rural households in India? State two features of each.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Whether credit will be useful or not, it depends on the situation. Give two different examples in support of this statement.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
CBSE 10 - Economics
Though informal credit sources charge a very high rate of interest, rural poor people still generally take loans from them. Give reasons.
Asked by Topperlearning User | 03 Jul, 2014, 10:09: AM
ANSWERED BY EXPERT ANSWERED BY EXPERT
My Class Videos Tests ₹ Plans Ask a Doubt
Get Latest Study Material for Academic year 24-25 Click here
×