Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?

>

>

Chapter 3

NCERT

Class 10

Economics

Solutions

4. Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?

Question:

Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?

Answer:

A large population of our country is poor. This definitely affects their credit taking ability as collateral has to be given in the form of a guarantee to get the loan. Poor people lack these assets which affects their ability to take loans.

More NCERT Questions

Download Free PDF

(All Q's of this Chapter solved)

question pointer

The following table shows people in a variety of occupations in urban areas. What are the purposes for which the following people might need loans? Fill in the column.

question pointer

Choose the most appropriate answer. (i) In a SHG most of the decisions regarding savings and loan activities are taken by

question pointer

Fill in the blanks: (i) Majority of the credit needs of the _________________households are met from informal sources.

question pointer

In India, about 80 per cent of farmers are small farmers, who need credit for cultivation.

question pointer

Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.

question pointer

Analyze the role of credit for development.

question pointer

In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?

question pointer

What are the reasons why the banks might not be willing to lend to certain borrowers?

question pointer

What is the basic idea behind the SHGs for the poor? Explain in your own words.

question pointer

Why do we need to expand formal sources of credit in India?

question pointer

Look at a 10 rupee note. What is written on top? Can you explain this statement?

question pointer

How do banks mediate between those who have surplus money and those who need money?

question pointer

How does money solve the problem of double coincidence of wants? Explain with an example of your own.

question pointer

In situations with high risks, credit might create further problems for the borrower. Explain.

question pointer

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

question pointer

Should there be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders? Why would its task be quite difficult?

question pointer

Why should credit at reasonable rates be available for all?

question pointer

What are the differences between formal and informal sources of credit?

question pointer

Tick the correct answer. (i) Over the years, Rama’s debt (a) will rise.

question pointer

Can everyone in Sonpur get credit at a cheap rate? Who are the people who can?

question pointer

Why will Arun have a higher income from cultivation compared to Shyamal?

question pointer

Compare the terms of credit for the small farmer, the medium farmer and the landless agricultural worker in Sonpur.

question pointer

Underline the various uses of credit in Sonpur in the above passages.

question pointer

List the various sources of credit in Sonpur.

question pointer

Fill in the blanks choosing the correct option from the brackets. While taking a loan, borrowers look for easy terms of credit.

question pointer

Why do lenders ask for collateral while lending?

question pointer

What are the reasons that make Swapna’s situation so risky? Discuss factors – pesticides; role of moneylenders; climate.

question pointer

Supposing Salim continues to get orders from traders. What would be his position after 6 years?

question pointer

Fill the following table : Why did they need credit?

question pointer

What do you think would happen if all the depositors went to ask for their money at the same time?

question pointer

Why are demand deposits considered as money?

question pointer

Tick the correct answer. After the transaction between Salim and Prem, (i) Salim’s balance in his bank account increases, and Prem’s balance increases.

question pointer

M. Salim wants to withdraw Rs 20,000 in cash for making payments. How would he write a cheque to withdraw money?

question pointer

Let us Try and Understand How Cheque payments are made and Realised with an example.

question pointer

Can you think of some examples of goods / services being exchanged or wages being paid through barter?

question pointer

How does the use of money make it easier to exchange things?

Buy Latest Books

Teacher's Specimen