Question

13.Read the information given below and select the correct option:

Raju takes a loan of 1 lakh from a bank for his production needs. He utilises the money

efficiently ,makes profit and repays the loan with interest on time as per the credit terms .

The role of credit in this scenario is

A. To help Mohan in the production

B. To help Mohan meet his basic needs

C. To increase the Liability on Mohan

D. To get interest income from Mohan​

Answer 1

Answer:

A. To help Mohan in the production

Explanation:

Answer 2

Answer:

The correct option is A i.e., To help Raju In the Production

Explanation:

As per the above case, A person takes loan from bank for his/her business purpose only when he/she has lack of fund to run the business.

In this case Raju takes loan from bank but he utilise this fund in such a way that he is able to recover the whole amount along with principle and interest.

Here the role of credit help the Raju in the Production.

Note- Take Raju in place of Mohan

Here options have some mistake

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