Question

Given that a large number of people in a country are poor, does it anyway affect their capacity to borrow

Answer 1

Hey mate...here is ur ans..☺☺✌

◼Yes off course if a large number of people in a country are poor then it affects their capacity to borrow because they dont have enough money for themselves nd their families.

◼So for the consumption of food they used to borrow money lenders and also for their crpos in agriculture

◼So they have to borrow and they struck in debt cycle bcoz the interst in very high

Hope it helps u...thanks...☺☺✌

Answer 2

If a large no. of people in a country are poor , they may not possess any asset which can be pledged as collateral  . Hence they will not be able to get loan from formal sources like banks.