Question

Why should credit at reasonable rates be available for all? Explain why the supervision of the functioning of formal sources of loans is necessary?

Answer 1

Answer:

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

Answer

Credit at reasonable rates should be available for all because it helps in the development of a country.

The supervision of the functioning of formal sources of loans is necessary to check if both poor and rich are benefited.

Under the informal sectors money lenders are trying to exploit the poor with heavy interest on them. Farmers are the first one to be affected by these informal sources of loans.

If Formal sources of loans are available with less procedures and feasibility all the needy business persons will be benefited.