Question

explain why the supervision of the fundwning the formal sources of loans is necessary​

Answer 1

Explanation:

The supervision of the functioning of the formal sources of credit is necessary because the banks should not only provide loans to rich sections of society but also to poor people. Also, the banks should follow the right procedures of borrowing and lending money.

Answer 2

ᴛʜᴇ sᴜᴘᴇʀᴠɪsɪᴏɴ ᴏғ ᴛʜᴇ ғᴜɴᴄᴛɪᴏɴɪɴɢ ᴏғ ᴛʜᴇ ғᴏʀᴍᴀʟ sᴏᴜʀᴄᴇs ᴏғ ᴄʀᴇᴅɪᴛ ɪs ɴᴇᴄᴇssᴀʀʏ ʙᴇᴄᴀᴜsᴇ ᴛʜᴇ ʙᴀɴᴋs sʜᴏᴜʟᴅ ɴᴏᴛ ᴏɴʟʏ ᴘʀᴏᴠɪᴅᴇ ʟᴏᴀɴs ᴛᴏ ʀɪᴄʜ sᴇᴄᴛɪᴏɴs ᴏғ sᴏᴄɪᴇᴛʏ ʙᴜᴛ ᴀʟsᴏ ᴛᴏ ᴘᴏᴏʀ ᴘᴇᴏᴘʟᴇ. ᴀʟsᴏ, ᴛʜᴇ ʙᴀɴᴋs sʜᴏᴜʟᴅ ғᴏʟʟᴏᴡ ᴛʜᴇ ʀɪɢʜᴛ ᴘʀᴏᴄᴇᴅᴜʀᴇs ᴏғ ʙᴏʀʀᴏᴡɪɴɢ ᴀɴᴅ ʟᴇɴᴅɪɴɢ ᴍᴏɴᴇʏ.❤