In situations with high risks, credit might create further problems for the borrower. Explain.
The situations with high risks, credit might create further problems for the borrower:
(i)The borrower had to pay interest on principal as well as on interest to lenders.
(ii)The lenders can go against the defaulT borrower in the court to recover his principal amount and interest thereupon.
(iii) Sometimes, the lender can sell the security or the assets as collateral pledged with the banks or co-operative society or any informal agency of credit.
How does money solve the problem of double coincidence of wants ? Explain with an example of your own.
How do banks mediate between those who have surplus money and those who need money?
Look at a 10 Rupee note. What is written on top? Can you explain this statement?
Why do we need to expand formal sources of credit in India?
