Social Science

How did urbanisation help create opportunities?

Urbanization has been a key driver of economic, social, and technological progress in many parts of the world. Here’s how urbanization has helped to create opportunities: 1. Economic Growth: Urban areas often become hubs of industry, commerce, and services, leading to significant economic growth. Businesses thrive on the concentration of customers, suppliers, and competitors, fostering…

Explain Two Points of Differences Between Formal and Informal Sources of Credit.

The two points of differences between formal and informal sources of credit are: Formal sector credit charge less rate of interest whereas informal sector credit charges very high rate of interest. Formal sector credit is easy to repay whereas the informal sector credit is difficult to repay.

How Does the Use of Money Make the Exchange of Things Easier? Explain With Examples.

In barter system, if a shoe manufacturer wants to sell shoes and buy wheat, and then first he has to look for a wheat growing farmer who wants to buy shoes and needs to sell wheat. Money can make it easier to exchange the things. The shoe manufacturer can sell the shoes for money and…

What Are Demand Deposits? How Is Money Safe in the Banks? Explain.

Depositors are those who open an account and deposit money in the banks. Depositors can withdraw their money as and when they require therefore, these deposits are also called demand deposits. Those having extra cash open a bank account in their name and deposit the surplus money there. Their money is safe with the banks…

What Is Money? Why Is Modern Money Currency Accepted as a Medium of Exchange?

Money is a medium of exchange used in settling the transactions. Money acts as an intermediate in the exchange process and eliminates the need for double coincidence of wants. As money acts as intermediate, it is also called medium of exchange. People have exchanged their goods and services since from the beginning. The medium of…

How Do Self-Help Groups Help Borrowers to Overcome the Problem of Lack of Collateral? Explain With an Example.

This is a new idea to organize rural poor particularly women who pool their savings. Generally, this group has 15-20 members. Members belong to the neighbourhood so that they can meet and save regularly. Saving per member varies from ? 25 to ? 100 or more, depending on the economic condition of the member. When…

Mention Any Three Points of Distinction Between Formal Sector Loans and Informal Sector Loans.

The three points of distinction between formal sector loans and informal sector loans are: Banks and cooperatives are called the formal sector credit whereas moneylenders, friends etc. are called the informal sector credit. Formal sector credit charge less rate of interest whereas informal sector credit charges very high rate of interest. Formal sector credit is…

Review Any Three Merits and Any Two Demerits of ‘Formal Sector of Credit’ in India.

Merits of formal sector credit in India: It provides cheap and affordable credit. Due to low cost of borrowing, the borrowers have to repay less and they will have more saving. The loan activities of the formal sector is supervised by the RBI. Demerits of formal sector credit in India: Mostly people in the urban…

Banks Are Playing an Important Role in the Development of the Indian Economy. Support the Statement With Examples.

Cheap and affordable credit is important for the country‚Äôs development because: It will help people to take credit for variety of reasons. It will help poor people to get rid of the problem of moneylenders and their high rate of interest. It will be easy for the people to repay the loan. Those having extra…