UPSC Exam > UPSC Questions > Consider the following statements.1. The per...
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Consider the following statements.
1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources
2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowing
Which of the statements/statements is/are not correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
Consider the following statements.1. The percentage of the loans take...
The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowing. What does all this suggest? First, the formal sector still meets only about half of the total credit needs of the rural people. The remaining credit needs are met from informal sources.
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Most Upvoted Answer
Consider the following statements.1. The percentage of the loans take...
Statement 1: The percentage of loans taken by poor households in urban areas from informal sources is much more than the percentage of loans taken by rich households in urban areas from informal sources.
This statement is correct. Poor households in urban areas often have limited access to formal financial institutions like banks and therefore rely heavily on informal sources for loans. These informal sources can include moneylenders, friends, and relatives. The percentage of loans taken from such informal sources is usually higher for poor households compared to rich households.
Statement 2: Rich households are availing cheap credit from formal lenders whereas poor households have to pay a large amount for borrowing.
This statement is incorrect. Rich households generally have better access to formal financial institutions and can avail themselves of cheap credit. They have the ability to negotiate better terms and conditions, such as lower interest rates, due to their higher income and assets. On the other hand, poor households often have to resort to informal sources for loans, which typically charge higher interest rates. This means that poor households often have to pay a larger amount for borrowing compared to rich households.
Conclusion:
Both statements 1 and 2 are correct. The percentage of loans taken by poor households from informal sources in urban areas is usually higher than that of rich households. Additionally, rich households have better access to cheap credit from formal lenders, while poor households have to pay a larger amount for borrowing.
This statement is correct. Poor households in urban areas often have limited access to formal financial institutions like banks and therefore rely heavily on informal sources for loans. These informal sources can include moneylenders, friends, and relatives. The percentage of loans taken from such informal sources is usually higher for poor households compared to rich households.
Statement 2: Rich households are availing cheap credit from formal lenders whereas poor households have to pay a large amount for borrowing.
This statement is incorrect. Rich households generally have better access to formal financial institutions and can avail themselves of cheap credit. They have the ability to negotiate better terms and conditions, such as lower interest rates, due to their higher income and assets. On the other hand, poor households often have to resort to informal sources for loans, which typically charge higher interest rates. This means that poor households often have to pay a larger amount for borrowing compared to rich households.
Conclusion:
Both statements 1 and 2 are correct. The percentage of loans taken by poor households from informal sources in urban areas is usually higher than that of rich households. Additionally, rich households have better access to cheap credit from formal lenders, while poor households have to pay a larger amount for borrowing.
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Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements.1. The percentage of the loans taken by poor households in the urban areas from informal sources are much more than the percentage of the loans taken by rich households in the urban areas from informal sources2. The rich households are availing cheap credit from formal lenders whereas the poor households have to pay a large amount for borrowingWhich of the statements/statements is/are not correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
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