Money and Credit

1

Why is it necessary to increase a large number of banks mainly in rural areas ? Explain.

2

Why are service conditions of formal sector loans better than informal sector ? Explain.

3

"The credit activities of the informal sector should be discouraged." Support the statement with arguments.

4

Why is cheap and affordable credit important for the country’s development? Explain any three reasons.

5

Amrita is a government employee and belongs to a rich urban household whereas Rani works as a helper on a construction site and comes from a poor rural household. Both have a crisis at home and wish to take loan. Create a list of arguments explaining who between the two would successfully be able to get the loan from a formal source. Why?

6

Explain Loan Activities Of Banks In India?