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

  • question_answer   How are cooperatives functioning in the rural areas to solve the problem of credit?

    Answer:

                      (i) Besides banks, the other major source of cheap credit in rural areas are the cooperatives. (ii) Members of a cooperative, pool their resources for cooperation in certain areas. (iii) Cooperatives form members, who accept deposits from its members. With these deposits as collateral, the cooperative obtains a large loan from the bank. These funds are used to provide loans to members. Once these loans are repaid, another round of lending can take place.


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