In situations with high risks, credit might create further problems for the borrower. Explain?
In situations with high risks, credit might create further problems for the borrower. This is also known as a debt – trap. Tracking credit involves a certain amount of loan that is taken by a borrower from a lender at a high-interest rate . it the borrower fails to pay back the loan amount due to some loss in his job or business, he further falls in the trap of credit. He has to repay the credit along with the interest applied by the lender. This increases the problems for the borrower. In such situation he is focused to give up his collateral or asset used as the guarantee to the lender. For example, if a farmer takes a loan for crop production and crop fails , then it becomes nearly impossible for him to repay the loan amount along with the charged interest. To repay the loan the farmer may sell a part of his land making the situation worse than before. Due being unable to repay the loan and harassed by the lenders, many times farmer commit suicide. Thus, in situations with high risk, if the risks , if the risks affect a borrower badly, then he ends up losing more than what he would have without taking the loan.
Popular Questions of Class 10 Social Science - Understanding Economic Development
- Q:-
The following table shows the proportion of adults (aged 15-49 years) whose BMI
is below normal (BMI <18.5 kg/m2) in India. It is based on a survey of various
states for the year 2015-16. Look at the table and answer the following questions.(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around one-fifth of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words. - Q:-
Explain how public sector contributes to the economic development of a nation.
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Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
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“Tertiary sector is not playing any significant role in the development of Indian
economy.” Do you agree? Give reasons in support of your answer. - Q:-
For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
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Why is the issue of sustainability important for development?
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For each of the items given in Table 1.6, find out which country is at the top and
which is at the bottom. - Q:-
Critically examine the progress of the consumer movement in India?
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Distinguish between open unemployment and disguised unemployment.
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Fill in the blanks using the correct option given in the bracket:
(i) Employment in the service sector _________ increased to the same extent as production. (has / has not)
(ii) Workers in the _________ sector do not produce goods. (tertiary agricultural) (iii) Most of the workers in the _________ sector enjoy job security. (organised / unorganised)
(iv) A _________ proportion of labourers in India are working in the unorganised sector. (large / small)
(v) Cotton is a _________ product and cloth is a _________ product. (natural / manufactured)
(vi) The activities in primary, secondary and tertiary sectors are _________. (independent / interdependent)
Recently Viewed Questions of Class 10 Social Science - Understanding Economic Development
- Q:-
The following table shows the proportion of adults (aged 15-49 years) whose BMI
is below normal (BMI <18.5 kg/m2) in India. It is based on a survey of various
states for the year 2015-16. Look at the table and answer the following questions.(i) Compare the nutritional level of people in Kerala and Madhya Pradesh.
(ii) Can you guess why around one-fifth of people in the country are undernourished even though it is argued that there is enough food in the country? Describe in your own words. - Q:-
In India, about 80 percent of farmers are small farmers, who need cultivation.
(a) Why might banks be unwilling to lend to small farmers? (b) What are the other sources from which the small farmers can borrow? (c) Explain with an example of how the terms of credit can be unfavorable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit. - Q:-
Analyse the role of credit for development.
- Q:-
Workers are exploited in the unorganised sector. Do you agree with this view? Give reasons in support of your answer.
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How would flexibility in labour laws help companies?
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The workers in the unorganised sector need protection on the following issues :
wages, safety and health. Explain with examples. - Q:-
How do banks mediate between those who have surplus money and those who need money?
- Q:-
For each of the sectors that we came across in this chapter why should one focus on employment and GDP? Could there be other issues which should be examined? Discuss.
- Q:-
Development of a country can generally be determined by
(i) its per capita income
(ii) its average literacy level
(iii) health status of its people
(iv) all the above - Q:-
Match the following.
(i) MNCs buy at cheap rates from small producers
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Automobiles
(ii) Quotas and taxes on imports are used to regulate trade
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Garments, footwear, sports items
(iii) Indian companies who have invested abroad
(c) Call centres
(iv) IT helped in spreading of production of services
(d) Tata Motors, Infosys, Ranbaxy
(v) Several MNCs have invested in setting up factories in India for production
(e) Trade barriers
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- NCERT Chapter