Class 10 Exam > Class 10 Videos > Social Studies (SST) Class 10 > Formal & Informal Sectors of Credit
Formal & Informal Sectors of Credit Video Lecture | Social Studies (SST) Class 10
|
64 videos|445 docs|87 tests
|
FAQs on Formal & Informal Sectors of Credit Video Lecture - Social Studies (SST) Class 10
| 1. What are the main differences between formal and informal sectors of credit? |  |
Ans. The formal sector of credit includes recognized financial institutions like banks and credit unions that follow government regulations and provide loans with official documentation. In contrast, the informal sector consists of unregulated lenders, such as loan sharks or local moneylenders, who may charge higher interest rates and operate without legal oversight.
| 2. Why do people prefer informal credit over formal credit? | |
Ans. People may prefer informal credit due to easier access and fewer requirements, such as not needing a credit history or collateral. Informal lenders may also provide quicker loans without the lengthy processes often associated with formal institutions, making it appealing for urgent financial needs.
| 3. What are the risks associated with borrowing from the informal sector? | |
Ans. Borrowing from the informal sector can be risky due to high-interest rates, the potential for exploitation, and the lack of legal protection. Borrowers may face threats or harassment if they cannot repay the loans on time, leading to a cycle of debt that is difficult to escape.
| 4. How does the formal credit sector contribute to the economy? | |
Ans. The formal credit sector contributes to the economy by providing loans for businesses and consumers, which stimulates economic growth. It helps individuals invest in education, homes, or businesses, thus increasing productivity and creating job opportunities, while also ensuring that funds are used in a regulated manner.
| 5. What role do credit scores play in accessing formal credit? | |
Ans. Credit scores are crucial in the formal credit sector as they indicate a borrower's creditworthiness. A higher credit score suggests a reliable borrower, making it easier to obtain loans with favorable terms. Conversely, a low credit score may result in higher interest rates or denial of credit altogether.
Related Exams
About this Video
|
4.5K Views |
|
4.72/5 Rating |
|
Nov 07, 2024 Last updated |
Video Description: Formal & Informal Sectors of Credit for Class 10 2024 is part of Social Studies (SST) Class 10 preparation.
The notes and questions for Formal & Informal Sectors of Credit have been prepared according to the Class 10 exam syllabus.
Information about Formal & Informal Sectors of Credit covers all important topics for Class 10 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Formal & Informal Sectors of Credit.
Introduction of Formal & Informal Sectors of Credit in English is available as part of our Social Studies (SST) Class 10 for Class 10 & Formal & Informal Sectors of Credit in
Hindi for Social Studies (SST) Class 10 course. Download more important topics related with notes, lectures and mock test series for
Class 10 Exam by signing up for free.
Description
Video Lecture & Questions for Formal & Informal Sectors of Credit Video Lecture | Social Studies (SST) Class 10 - Class 10 full syllabus preparation | Free video for Class 10 exam to prepare for Social Studies (SST) Class 10.
Information about Formal & Informal Sectors of Credit
Here you can find the meaning of Formal & Informal Sectors of Credit defined & explained in the simplest way possible.
Besides explaining types of Formal & Informal Sectors of Credit theory, EduRev gives you an ample number of questions to practice Formal & Informal Sectors of Credit tests,
examples and also practice Class 10 tests.
|
64 videos|445 docs|87 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.
Related Searches
Formal & Informal Sectors of Credit Video Lecture | Social Studies (SST) Class 10
,mock tests for examination
,Previous Year Questions with Solutions
,Sample Paper
,Formal & Informal Sectors of Credit Video Lecture | Social Studies (SST) Class 10
,video lectures
,Exam
,Summary
,Viva Questions
,practice quizzes
,Free
,Semester Notes
,study material
,Extra Questions
,past year papers
,MCQs
,Important questions
,Formal & Informal Sectors of Credit Video Lecture | Social Studies (SST) Class 10
,ppt
,Objective type Questions
,shortcuts and tricks
;
Study Formal & Informal Sectors of Credit on the App
Students of Class 10 can study Formal & Informal Sectors of Credit alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Formal & Informal Sectors of Credit,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Formal & Informal Sectors of Credit is prepared as per the latest Class 10 syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup