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
Explain how banks function like a business with respect to the above statement.
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?
Justify the above statement in relation to the banks' requirements to ensure the security of the funds they lend.
How are farmers with small holdings affected by the high costs of borrowing loans?
Give reasons why we need to expand formal sources of credit in India.
