What do you think that credit plays a positive role on swapna's situation whereas it plays a negative role in the situation of Salim? Explain
Answers
Answer:
Credit Play a negative role:-
Credits reduces the repulation of the borrower. 3. Credits reduces the borrower to self it fixed asserts.
Explanation:
In barter system, if a shoe manufacturer wants to sell shoes and buy wheat, first he has to look for a wheat-growing farmer who wants to buy shoes and needs to sell wheat.
Money can make it easier to exchange the things. The shoe manufacturer can sell the shoes for money and then with that money he can bed to buy wheat.
Answer:
HERE IS YOUR ANSWER DEAR
Explanation:
Swapna is a small farmer and grows groundnuts on her three acres. She takes loan from the money lender to meet the expenses of cultivation, hoping that her harvest would help repay the loan. Mid way through the season the crop is hit by pests and the crop fails. Though Swapna sprays her crops with expensive pesticides, it makes little difference. She is unable to repay the moneylender and the debt grows over the year into large. In this way credit put swapna in to worse conditions.
During festival season Salim, a shoe manufacturer has received an order from a large trader in town for 3000 pairs of shoes to be delivered in a month time. To complete production on time Salim has to hire a few more workers for stitching and pasting work. He has to purchase the raw material. To meet his expenses Salim obtain loan from two different sources. At the end of the month, Salim is able to deliver the order, make a good profit, and repay the money that he had borrowed. He had also earned huge profit. In this way credit helps Salim to improve his business