10th Class Social Science Money and Credit Question Bank Short Answer Type - Money and Credit

  • question_answer In situations with high risks, credit might create further problems for the borrower. Explain.

    Answer:

    If a farmer has taken a loan for crop production and due to unavoidable factors there is a crop failure then he cannot repay the loan.  Now again he has to take a new loan to repay the earlier loan or sell some part of his land. Therefore here credit has created problems for the borrower as he falls into a debt-trap.


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