10th Class Social Science Money and Credit Question Bank 10th CBSE Social Science Money and Credit

  • question_answer   "Loans from banks always help raise people's earning capacity". Justify this statement using suitable examples.         


                      Business loans help to establish people's businesses, enabling them to earn more. The examples are (i) They can purchase machinery and equipment with a loan to start productive activities in manufacturing. (ii) With a loan, they can purchase raw material for processing into finished products, thus increasing their earning power. (iii) For seasonal items, by getting a loan against storage of finished goods produced during the off season, they can earn more by selling more during the season.

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