Class 10 Exam > Class 10 Questions > Most of the agricultural labourers like Mohan...
Start Learning for Free
Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?
- a)There are government bodies to supervise informal sector.
- b)Money lenders ask for a reasonable rate of interest.
- c)Cost of informal loans to the borrower is quite high.
- d)Money lenders use fair means to get their money back.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Most of the agricultural labourers like Mohan depend upon loans from i...
It is because the lender in the informal sector give more money, without any collateral. In the informal sector the lender asks for a huge interest which the borrower is unable to sometimes pay back eventually falls into debt trap.
Free Test
| FREE | Start Free Test |
Community Answer
Most of the agricultural labourers like Mohan depend upon loans from i...
Explanation:
The correct statement about the informal sector in relation to agricultural loans is option C, which states that the cost of informal loans to the borrower is quite high. Let's understand why this statement is correct:
1. Lack of Government Supervision:
- The informal sector refers to the sector of the economy that is not regulated or monitored by the government.
- Unlike the formal sector, which includes banks and other financial institutions, the informal sector operates outside the purview of government bodies.
- Therefore, statement A, which suggests the presence of government bodies to supervise the informal sector, is incorrect.
2. High Interest Rates:
- In the informal sector, money lenders provide loans to agricultural laborers like Mohan.
- These money lenders are not bound by regulations or interest rate caps imposed by the government.
- As a result, they often charge exorbitant interest rates on the loans they provide.
- This high cost of borrowing makes statement C, which states that the cost of informal loans to the borrower is quite high, correct.
3. Unfair Practices:
- Money lenders in the informal sector often resort to unfair means to recover their money.
- They may use threats, harassment, or even seize the assets of the borrower to ensure repayment.
- Therefore, statement D, which suggests that money lenders use fair means to get their money back, is incorrect.
4. Alternative Options:
- Due to the high cost and unfair practices associated with the informal sector, it is crucial to provide alternative options to agricultural laborers for accessing credit.
- This can be achieved through the formal sector, where regulated banks and financial institutions provide loans at reasonable interest rates and with proper legal protections.
In conclusion, the informal sector is often the only option for agricultural laborers like Mohan to access credit. However, the high cost of informal loans and the lack of government supervision make it an unfavorable choice. It is important to promote the formal sector and provide affordable and fair credit options to uplift the economic conditions of agricultural laborers.
The correct statement about the informal sector in relation to agricultural loans is option C, which states that the cost of informal loans to the borrower is quite high. Let's understand why this statement is correct:
1. Lack of Government Supervision:
- The informal sector refers to the sector of the economy that is not regulated or monitored by the government.
- Unlike the formal sector, which includes banks and other financial institutions, the informal sector operates outside the purview of government bodies.
- Therefore, statement A, which suggests the presence of government bodies to supervise the informal sector, is incorrect.
2. High Interest Rates:
- In the informal sector, money lenders provide loans to agricultural laborers like Mohan.
- These money lenders are not bound by regulations or interest rate caps imposed by the government.
- As a result, they often charge exorbitant interest rates on the loans they provide.
- This high cost of borrowing makes statement C, which states that the cost of informal loans to the borrower is quite high, correct.
3. Unfair Practices:
- Money lenders in the informal sector often resort to unfair means to recover their money.
- They may use threats, harassment, or even seize the assets of the borrower to ensure repayment.
- Therefore, statement D, which suggests that money lenders use fair means to get their money back, is incorrect.
4. Alternative Options:
- Due to the high cost and unfair practices associated with the informal sector, it is crucial to provide alternative options to agricultural laborers for accessing credit.
- This can be achieved through the formal sector, where regulated banks and financial institutions provide loans at reasonable interest rates and with proper legal protections.
In conclusion, the informal sector is often the only option for agricultural laborers like Mohan to access credit. However, the high cost of informal loans and the lack of government supervision make it an unfavorable choice. It is important to promote the formal sector and provide affordable and fair credit options to uplift the economic conditions of agricultural laborers.
|
Explore Courses for Class 10 exam
|
|
Top Courses for Class 10View all
Question Description
Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer?.
Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer?.
Solutions for Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 10.
Download more important topics, notes, lectures and mock test series for Class 10 Exam by signing up for free.
Here you can find the meaning of Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Most of the agricultural labourers like Mohan depend upon loans from informal sector. Which of thefollowing statements about this sector is correct?a)There are government bodies to supervise informal sector.b)Money lenders ask for a reasonable rate of interest.c)Cost of informal loans to the borrower is quite high.d)Money lenders use fair means to get their money back.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice Class 10 tests.
|
|
Explore Courses for Class 10 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up
within 7 days!
within 7 days!
Takes less than 10 seconds to signup