HARD
10th CBSE
IMPORTANT
Earn 100

Besides banks, the other major source of cheap credit in rural areas is the cooperative societies (or cooperatives).

In what ways do cooperative societies function as significant sources of affordable credit in rural areas, and how does their role impact financial inclusion, agricultural development, and overall economic empowerment within local communities?

Important Questions on Money and Credit

HARD
10th CBSE
IMPORTANT
'Business is all about solving people's problems - at a profit.'
Explain how banks function like a business with respect to the above statement. 
HARD
10th CBSE
IMPORTANT

Rahul has a sack of cotton but he is in need of wheat and Anush has a sack of wheat and is in need of cotton, under this situation both will be able to exchange their goods. In case of absence of such coincidence of wants, they may not exchange their goods.

Which one of the following would be the best option that describes the mutual exchange of goods and eliminate the exchange of goods?

HARD
10th CBSE
IMPORTANT
Why are demand deposits considered as money?
HARD
10th CBSE
IMPORTANT
'A bank is a place that will lend you money if you can prove that you do not need it.'
Justify the above statement in relation to the banks' requirements to ensure the security of the funds they lend.
HARD
10th CBSE
IMPORTANT
A farmer has borrowed money from a money lender at a high rate of interest, as he could not pay the interest, he was forced to borrow from another landlord to settle the amount for the interest borrowed to the money lender. State the consequences he may face in this situation.
HARD
10th CBSE
IMPORTANT

How are farmers with small holdings affected by the high costs of borrowing loans?

HARD
10th CBSE
IMPORTANT
Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?
HARD
10th CBSE
IMPORTANT

Give reasons why we need to expand formal sources of credit in India.