We need to expand formal sources of credit in India due to the following reasons: (i) The moneylender or the agricultural traders charge a much higher interest on loans. They generally charge 5 per cent per month where as the banks charges about about 10 to 15 percent per annum. The higher rate of iRead more
We need to expand formal sources of credit in India due to the following reasons:
(i) The moneylender or the agricultural traders charge a much higher interest on loans. They generally charge 5 per cent per month where as the banks charges about about 10 to 15 percent per annum. The higher rate of interest do little to increase the income of the borrowers.
(ii) The farmers who take loans from a trader are forced to sell their crop to him at low prices. As a result of it, the farmers suffer while the traders make profit by selling grains at high price.
(iii) Higher interest means the borrower has to pay a major portion of his earnings to repay the interest and principal of the loan. This sometimes leads too debt trap for the borrower.
(iv) On the other hands, banks and cooperatives charge less interest and do not exploit the borrowers. Under these circumstances, there is need for expansion of formal sources of credit in Indian. It is necessary that everyone receives this loans.
(v) This would also leads a higher incomes and many people could then borrow cheaply for a variety of needs. The formal credit in India. It is also necessary that everyone receives this loans.
(vi) It may be added that cheap and affordable credit is crucial for the development of the country.
(i) Money solves the problem of double coincidence of wants because it acts as an intermediates in the exchange process. (ii) People may purchase anything with money. (iii) There is no need to have any goods or commodities for exchange. (iv) Money acts as a medium of exchange. (v) For example, a perRead more
(i) Money solves the problem of double coincidence of wants because it acts as an intermediates in the exchange process.
(ii) People may purchase anything with money.
(iii) There is no need to have any goods or commodities for exchange.
(iv) Money acts as a medium of exchange.
(v) For example, a person working as an engineer in a government department gets salary from his office. With that money (salary) he purchases different goods from the market according to the requirements of his family. He makes payment in cash and does not need any products for exchange process.
(i) High risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment. (ii) There is minimum stretch of three to four months between the time when farRead more
(i) High risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment.
(ii) There is minimum stretch of three to four months between the time when farmers buy these inputs and when they sell the crop.
(iii) Farmers generally take crop loans at the beginning of the season and repay the loan after harvest.
(iv) Repayment of the loan is crucially dependent on the income from farming.
(v) If a crop fails due to shortage of rain or for any other reason, a small farmer has to sell a part of the land to repay the loan.
(vi) Failure of crops create further problems for the borrowers, Credit does not improve his earnings but leave him worse off than before. Credit in high risks situations pushes the borrower into a debt trap, a situation from which recovery is very painful.
(a) What is GDP - The value of final goods and services produced in each sector during a particular year provides the total production of sector for that year. And the sun of the production in the three sector is called the Gross Domestic Product or GDP. (b) Measuring of GDP- The task of measuringRead more
(a) What is GDP – The value of final goods and services produced in each sector during a particular year provides the total production of sector for that year. And the sun of the production in the three sector is called the Gross Domestic Product or GDP.
(b) Measuring of GDP- The task of measuring GDP is undertaken by a Central Government ministry. The ministry with the help of various government departments of all the Indian states and union territories, collects the information relating to the total volume of goods and services and their prices and then estimates the GDP.
(c) Importance of GDP- The GDP of a country shows the size of the economy of the country. This reflects whether the country is poor or rich and the status of employment and people.
The essential services, included in the service sector, that may not directly help in the production of goods are as mentioned below: (i) Teachers. (ii) Doctors. (iii) Persons who provide personal services such as washerman, barbers, cobblers, lawyers and people to do administrative and according woRead more
The essential services, included in the service sector, that may not directly help in the production of goods are as mentioned below:
(i) Teachers.
(ii) Doctors.
(iii) Persons who provide personal services such as washerman, barbers, cobblers, lawyers and people to do administrative and according works.
(iv) Recently certain new services based on information technology such as internet cafe, ATM booth, call centers, software companies have become important.
(i) In term of ownership, sector can be divided into public and private sectors. (ii) Public sector- Railways (iii) Private sector-Tata iron and Steel Company Ltd.
(i) In term of ownership, sector can be divided into public and private sectors.
(ii) Public sector- Railways
(iii) Private sector-Tata iron and Steel Company Ltd.
In the rural areas, the unorganised sector, mostly consists of landless agricultural labourers, small and marginal farmers, shopkeeper and weavers , blacksmiths etc.
In the rural areas, the unorganised sector, mostly consists of landless agricultural labourers, small and marginal farmers, shopkeeper and weavers , blacksmiths etc.
Why do we need to expand formal sources of credit in India?
We need to expand formal sources of credit in India due to the following reasons: (i) The moneylender or the agricultural traders charge a much higher interest on loans. They generally charge 5 per cent per month where as the banks charges about about 10 to 15 percent per annum. The higher rate of iRead more
We need to expand formal sources of credit in India due to the following reasons:
(i) The moneylender or the agricultural traders charge a much higher interest on loans. They generally charge 5 per cent per month where as the banks charges about about 10 to 15 percent per annum. The higher rate of interest do little to increase the income of the borrowers.
(ii) The farmers who take loans from a trader are forced to sell their crop to him at low prices. As a result of it, the farmers suffer while the traders make profit by selling grains at high price.
(iii) Higher interest means the borrower has to pay a major portion of his earnings to repay the interest and principal of the loan. This sometimes leads too debt trap for the borrower.
(iv) On the other hands, banks and cooperatives charge less interest and do not exploit the borrowers. Under these circumstances, there is need for expansion of formal sources of credit in Indian. It is necessary that everyone receives this loans.
(v) This would also leads a higher incomes and many people could then borrow cheaply for a variety of needs. The formal credit in India. It is also necessary that everyone receives this loans.
(vi) It may be added that cheap and affordable credit is crucial for the development of the country.
See lessHow does money solve the problem of double coincidence of wants? Explain with an example of your own.
(i) Money solves the problem of double coincidence of wants because it acts as an intermediates in the exchange process. (ii) People may purchase anything with money. (iii) There is no need to have any goods or commodities for exchange. (iv) Money acts as a medium of exchange. (v) For example, a perRead more
(i) Money solves the problem of double coincidence of wants because it acts as an intermediates in the exchange process.
(ii) People may purchase anything with money.
(iii) There is no need to have any goods or commodities for exchange.
(iv) Money acts as a medium of exchange.
(v) For example, a person working as an engineer in a government department gets salary from his office. With that money (salary) he purchases different goods from the market according to the requirements of his family. He makes payment in cash and does not need any products for exchange process.
See lessIn situations with high risks, credit might create further problems for the borrower. Explain.
(i) High risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment. (ii) There is minimum stretch of three to four months between the time when farRead more
(i) High risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment.
(ii) There is minimum stretch of three to four months between the time when farmers buy these inputs and when they sell the crop.
(iii) Farmers generally take crop loans at the beginning of the season and repay the loan after harvest.
(iv) Repayment of the loan is crucially dependent on the income from farming.
(v) If a crop fails due to shortage of rain or for any other reason, a small farmer has to sell a part of the land to repay the loan.
(vi) Failure of crops create further problems for the borrowers, Credit does not improve his earnings but leave him worse off than before. Credit in high risks situations pushes the borrower into a debt trap, a situation from which recovery is very painful.
See lessWhat does GDP stand for? Explain how GDP is calculated.
(a) What is GDP - The value of final goods and services produced in each sector during a particular year provides the total production of sector for that year. And the sun of the production in the three sector is called the Gross Domestic Product or GDP. (b) Measuring of GDP- The task of measuringRead more
(a) What is GDP – The value of final goods and services produced in each sector during a particular year provides the total production of sector for that year. And the sun of the production in the three sector is called the Gross Domestic Product or GDP.
(b) Measuring of GDP- The task of measuring GDP is undertaken by a Central Government ministry. The ministry with the help of various government departments of all the Indian states and union territories, collects the information relating to the total volume of goods and services and their prices and then estimates the GDP.
(c) Importance of GDP- The GDP of a country shows the size of the economy of the country. This reflects whether the country is poor or rich and the status of employment and people.
See lessDescribe the essential services that are included in the services sectors and may not directly help in the production of goods?
The essential services, included in the service sector, that may not directly help in the production of goods are as mentioned below: (i) Teachers. (ii) Doctors. (iii) Persons who provide personal services such as washerman, barbers, cobblers, lawyers and people to do administrative and according woRead more
The essential services, included in the service sector, that may not directly help in the production of goods are as mentioned below:
(i) Teachers.
(ii) Doctors.
(iii) Persons who provide personal services such as washerman, barbers, cobblers, lawyers and people to do administrative and according works.
(iv) Recently certain new services based on information technology such as internet cafe, ATM booth, call centers, software companies have become important.
See lessWhat are the objective of public and private sector enterprises? State one each.
(i) Public sector - Welfare of the people and not to earn profit. (ii) Private sector- To earn profit
(i) Public sector – Welfare of the people and not to earn profit.
(ii) Private sector- To earn profit
See lessClassify economics activities into sectors on the basis of ownership. Give examples.
(i) In term of ownership, sector can be divided into public and private sectors. (ii) Public sector- Railways (iii) Private sector-Tata iron and Steel Company Ltd.
(i) In term of ownership, sector can be divided into public and private sectors.
(ii) Public sector- Railways
(iii) Private sector-Tata iron and Steel Company Ltd.
See lessIn urban areas which workers/people come in the category of unorganised sector?
In urban areas, unorganised sector comprises mainly of workers in small scale industry, casual workers in construction, trade and transport etc.
In urban areas, unorganised sector comprises mainly of workers in small scale industry, casual workers in construction, trade and transport etc.
See lessWhich groups of people are employed in unorganised sector in rural areas?
In the rural areas, the unorganised sector, mostly consists of landless agricultural labourers, small and marginal farmers, shopkeeper and weavers , blacksmiths etc.
In the rural areas, the unorganised sector, mostly consists of landless agricultural labourers, small and marginal farmers, shopkeeper and weavers , blacksmiths etc.
See lessWhat are the characteristics of the unorganised sector? State any one.
In unorganised sector, there are no provision for overtime, paid leave, holidays, leave due to sickness etc.
In unorganised sector, there are no provision for overtime, paid leave, holidays, leave due to sickness etc.
See less