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
Answers
Answer:
B- To help Mohan meet his basic need
Mohan takes a loan of 1 lakh from a bank for his production needs. He utilises the money, efficiently, makes a 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
The correct answer is :
B. To help Mohan meet his basic needs
Explanation :
Mohan takes a loan of one lakh from a bank to meet his production requirement. He uses his money efficiently and earns profit by investing in his business. He also pays the interest on time as per the terms of credit and also repays the entire loan with interest, the role of credit in this scenario has been helping Mohan to meet his basic needs.
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