Class 10th Important Question
CBSE 2022-2023
NCERT Social Science
Class 10th Economics CH: 3
CH:3 Social Science, Economics
Important Question for Board class 10th SST CH:3
Important Very Short Answer
Important Question Class 10th SSt Money and Credit
(i) Credit at reasonable interest rates should be available for all so that they may increase their income and help in the over all development of the country.
(ii) High interest rate do little to increase the income of the borrowers.
(iii) It is necessary that the banks and cooperatives increases their lending particularly in the rural areas, so that the dependence of the people on informal sources of credit reduces.
(iv) In addition to this more credit should be given to the poor to get maximum benefit from the cheaper loans.
(v) This will help in increasing in their income as well as standard of living.
Cheaper credit at a reasonable rate should be available for all so that
1 Poor people can benefit from the cheaper loan.
2 Higher cost of borrowing means a large part of the earning of the borrower is used to repay the loan.
3 It is necessary that banks and cooperatives increase their lending particularly in the rural areas , so that the dependence of people on informal soucers of loan reduces.
4 Cheaper credit increases their income and help in overall development of country.
5 Thus, cheap and affordable credit is crucial for country’s development and improves the standard of living of poor people.
Srishti Jonwal…….
Credit availability at reasonable rates from banks and cooperatives is crucial for various reasons:
1. Financial Inclusion: It ensures that all individuals, including those from marginalized sections, have access to financial services, promoting economic participation and equality.
2. Economic Growth: Affordable credit encourages entrepreneurship and small businesses, contributing to economic expansion, job creation, and local development.
3. Poverty Reduction: Access to reasonably priced credit enables individuals to invest in income-generating activities, aiding in poverty alleviation by providing opportunities for financial advancement.
4. Rural Development: Farmers and rural entrepreneurs depend on credit for agricultural activities and small-scale businesses, driving rural development and livelihood improvement.
5. Reduction of Informal Borrowing: Access to formal credit reduces reliance on informal lenders who charge high interest rates, protecting borrowers from debt traps.
6. Empowerment of Marginalized Groups: Affordable credit empowers women and marginalized groups by enabling them to engage in economic activities, fostering empowerment and gender equality.
7. Encouraging Entrepreneurship: Availability of credit facilitates innovation and entrepreneurship by providing the necessary capital for business startups and expansion.
In summary, accessible and reasonably priced credit from banks and cooperatives is crucial for fostering inclusive growth, poverty reduction, and economic development, benefiting individuals and the economy as a whole.