ELECTORAL POLITICS CLASS 9

 EXTRA QUESTIONS 

Q1.What is general election?

Answer: Election held after every five year is termed as general election.

Q2.What are Electoral Constituencies?

Answer: The country is divided into different areas for purposes of elections. These areas are called electoral constituencies. 

Q3.What is mid-term election?

Answer: If the Lok Sabha or any State Legislative Assembly is dissolved before the expiry of its normal term, the election held to constitute a new House is known as mid-term election. 

 Q4.How many seats are reserved for Scheduled Castes (SCs) and Schedule Tribe (ST)  in the Lok Sabha?

Answer: Currently, in the Lok Sabha, 84 seats are reserved for the Scheduled Castes. (SCs)and 47 for Schedule Tribes (ST).

Q5.How many seats are reserved for women at local bodies?

Q6.What does the term rigging mean?

Answer: The term ‘rigging’ means fraud and malpractices indulged by a party or candidate to increase its votes. 

Q7. When does the by-election occur?

Answer: When any vacancy occurs due to death or resignation of a candidate, election becomes necessary and it is known as by-election. 

Q8.What is meant by ‘reserved constituency‘?

Answer 

In a reserved constituency, only someone who belongs to the SC/ST or voter section can stand for election.

Q9

Why do some states have a large number of constituencies?

Answer: Some states have a large number of constituencies because of their population, i.e., large number of voters. 

Q10.What is a Democratic Election? 

Answer: Election should be conducted in a free and fair manner where people can choose as they really wish and this type of election is known as Democratic Election.

Q11.What is an election manifesto?

Answer 

The pamphlet or the booklet issued by a political party that tells people about its programmes and policies.

Q12.What is ‘Defection?

Answer: Changing party allegiance from the party for which a person got elected to a different party is called ‘Defection’.

 Q13.What is a ballot paper?

Answer: A ballot paper is a sheet of paper on which the names of the contesting candidates along with party name and symbols are issued. 

Q14What do you mean by ‘Turn out’.

Answer: Turnout indicates the percent of eligible voters who actually caste their vote.

Q15.What is the Election Photo Identity Card System?

Answer: Every voter is issued this photo identity card by the Election Commission. The voters are required to carry this card when they go out to vote, so that no one can vote for someone else. 

Q16

Describe the rules and regulations regarding election campaign in India? 

Answer

No party or candidate should do the following: 

• Use government resources for campaigning. 

• Bribe or threaten voters.

• Appeal to voters in the name of caste or religion 

• Spend more than the prescribed amount more than 10 lakh in assembly election.

• If any candidate violates the above laws or rules his election can be rejected by the court. 

Q17.What legal declaration is required to be submitted by each candidate who wishes to contest an election?

Answer: Every candidate has to make a legal declaration, giving full details of the following:
(i) Serious criminal cases pending against the candidate.
(ii) Details of the assets and liabilities of the candidate and his or her family.
(iii) Educational qualifications of the candidate. This information helps voters to make their decisions

Q18..What is the ‘Model code of Conduct’ for election campaign?
Answer:
According to the medal code of conduct, no party or candidate can:

• Use any place of worship for election propaganda. ‘
• Use government vehicles, aircrafts and officials for election.
• Once elections are announced, the Ministers shall not lay foundation stones of any projects, take any big policy decisions or make any promises of providing public facilities.

Q19.What are the minimum conditions needed for a democratic election?
Solution:
There are five minimum conditions needed for a democratic election. They are :

• Everyone should have the right to vote and every vote should have equal value.
• Parties and candidates should be free to contest elections and they should offer some real choice to the voters.
• Elections must be held regularly .
• Candidates preferred by the people should be elected.
• Elections should be conducted in a free and fair manner.

Q20.Mention a few successful slogans that were used during election campaigns.
Solution:
The most successful slogans used during election campaigns were:

• Garibi Hatao or Remove poverty: This slogan was used by the Congress party led by Indira Gandhi in the Lok Sabha elections of 1971. The party promised to remove poverty from the country.
• Save Democracy: This slogan used by Janata Party in the Lok Sabha election held in 1977. The party promised to undo the excesses committed during Emergency and restore civil liberties.
  Land to the Tiller: This slogan was used by the Left Front in the West Bengal Assembly elections held in 1977.
• Protect the Self Respect of the Telugus: This slogan used by N. T. Rama Rao, the leader of the Telugu Desam Party in Andhra Pradesh Assembly elections in 1983.

Q21.What powers are exercised by the Election Commission of India?

Answer:  (i) The Election Commission (EC) controls the elections right from the announcement of the elections to the declaration of the result.
(ii) It implements the Code of Conduct and punishes any candidate or party that violates it

(iii) During the election period, the EC can order the government to follow some guidelines, to prevent the use and misuse of government power to enhance its chances to win the elections or to transfer some government officials.
(iv) If the EC comes to know that the polling was not fair in some booths or even an entire constituency, they order a repoll.

Q22.What is system of elections in India?



• following steps involved for elections in India 

Electoral Constituencies

• The country is divided into different areas based on population for the purpose of elections which are called electoral constituencies.

• For Lok Sabha elections, the country is divided into 543 constituencies.

• Similarly, each state is divided into a specific number of Assembly constituencies.

Reserved Constituencies 

• Some constituencies are reserved for people who belong to the Scheduled Castes and Scheduled Tribes.

Voter’s List

• The list of people who are eligible for voting is prepared by the Election Commission of India before election.

• In India, all the citizens aged 18 years and above has the right to vote, regardless of his or her caste, creed, colour, religion or gender.

Nomination of Candidates

• Anyone who can be a voter can also become a candidate in elections.

• However, minimum age of in order to be a candidate the minimum age is 25 years.

Election Campaign

• The campaigns take place for a two-week period between the announcement of the final list of candidates and the date of polling.

Polling and Counting of Votes

• The final stage of an election is the day when the voters cast or ‘poll’ their vote.

Q. What are the legal declarations of a party candidate?

Answer:   Details of assets and liabilities of the candidate and his or her family and Educational qualifications of the candidate.

Q.

The Making of a Global World class 10

Textbook Questions 

. Give two examples of different types of global exchanges which took place before the seventeenth century, choosing one example from Asia and one from the Americas.
Ans:
(i) Asia 

• The Silk Routes are an example of vibrant pre-modem trade. These routes linked Asia with Europe and northern Africa and were used for trades in Chinese pottery and spices from India and Southeast Asia. 
• 
  
  
  
  

• Gold and silver came from Europe to Asia. Noodles are believed to reach Europe from China.
• Christian missionaries and Muslim preachers too travelled through these routes.

Global Exchange

(ii) America 

• America was rich in foods and minerals. Today’s common foods like potatoes, tomatoes, chillies, soya, maize, groundnuts, etc., came to Europe and then Asia from America after Christopher Columbus accidentally discovered this continent.
• Precious metals like silver from mines in Peru and Mexico enhanced Europe’s wealth and financed its trade with Asia. 
• Thus, there was a global exchange before the seventeenth century

Q2. Explain how the global transfer of disease in the pre-modern world helped in the colonization of the Americas.

Ans: 

• The global transfer of disease in the pre-modern world helped in the colonisation of the Americas because the native Americans had no immunity against the disease that came from Europe. 
• Before the discovery of America, it had been cut off from the rest of the world for millions of years. So, they had no defense against the disease. 
• In particular, Smallpox proved a deadly killer. It killed and decimated whole communities, paving the way for conquest.

Extra Questions 

Q.Which disease proved deadly killer for America’s original inhabitants?

Answer

The disease named smallpox proved deadly killer for America’s original inhabitants.

QWhat was the most powerful weapon of the Spanish conqueror to colonise America
Answer: The germs such as those of smallpox.

Q.Silk routes are a good example of vibrant pre-modern trade and cultural links between distant parts of the world.’ Examine the Statement.

Answer

(i) Historians have identified several silk routes, over land and by sea, knitting together vast regions of Asia, and linking Asia with Europe and northern Africa. 

(ii) Chinese pottery also travelled the same route, as did textiles and spices from India and Southeast Asia. 

(iii) In return, precious metals such as gold and silver flowed from Europe to Asia.

QState three reasons why Europeans fled to America in the 19th century. 

Answer

(i) Poverty and hunger were common in Europe. 

(ii) Cities were crowded and deadly diseases were widespread.

(iii) Religious conflicts were common, and religious dissenters were persecuted.

Q In what ways did food items offer scope for long distance cultural exchange? Explain. 

Answer

(i) Traders and travellers introduced new crops to the lands they travelled. 

(ii) It is believed that noodles travelled west from China to become spaghetti. 

(iii) Arabs traders took pasta to fifth-century Sicily, an island now in Italy. 

(iv) Many of our common foods such as potatoes, soya, groundnuts, maize tomatoes, chillies, sweet potatoes and so on were not known to our ancestors and were only introduced in Europe and Asia after Christopher Columbus discovered the Americas.

QGive three examples to show that the world changed with the discovery of new sea routes to America. 

Answer: (i) Before the discovery of the sea routes, America had been cut off from regular contact with the rest of the world for millions of years. But from the sixteenth century, its vast lands and abundant crops and minerals began to transform trade and lives everywhere.

(ii) Precious metals, particularly silver, from mires located in present day Peru and Mexico also enhanced Europe’s wealth and financed its trade with Asia. Legends spread in seventeenth-century Europe about South America’s fabled wealth. Many expeditions set off in search of El Dorado, the fabled city of gold

(iii) With the discovery of sea routes three types of movements or flows became prominent. i.e., the flow of goods, labour and capital

 Q. How did silk routes link the world? Explain with three suitable examples. 

OR
Explain any three characteristics of the Silk Route. 
Ans. Pre-modern trade and cultural links between distant places were established by the Silk Routes.  

• The silk route linked the West and China as silk cargoes were carried along this route. Historians have mentioned and identified several silk routes over land and by sea which brought together vast areas of Asia and linked Asia with Europe and Northern Africa.
• Chinese pottery travelled to India through these routes, even before the Christian era, and textiles and spices from India and South-East Asia; precious metals, like gold and silver, flowed from Europe to Asia.
• Trade and cultural exchange took place at the same time. Buddhism emerged from eastern India and spread in several directions through the silk route. Christian missionaries travelled through these routes to Asia, as did the early Muslim preachers a few centuries later.

Money and credit class 10

 

Table of contents

Page - 40

Q1: How does the use of money make it easier to exchange things?
Ans: The use of money makes exchanging goods and services much easier by acting as a universally accepted medium of exchange. Here are the key benefits:

• Eliminates Barter Issues: Unlike barter systems, where goods are exchanged directly, money allows transactions without needing a direct match of wants.
• Simplifies Transactions: People can buy what they need without searching for someone who wants what they have to offer.
• Facilitates Pricing: Money provides a clear way to set prices, making it easier to value goods and services.
• Improves Accounting: It simplifies record-keeping in economic transactions.

Q2: Can you think of some examples of goods/services being exchanged or wages being paid through barter?
Ans:In a barter system, goods and services are exchanged directly without using money. Here are some examples:

• A farmer might exchange a portion of their crops for a craftsman's tools.
• A carpenter could build furniture in return for a baker's bread.
• Wages can also be paid in barter; for instance, a painter may receive food from a restaurant owner in exchange for painting the owner's house.

Page - 42

Q1. M. Salim wants to withdraw Rs 20,000 in cash for making payments. How would he write a cheque to withdraw money?
Ans: M. Salim would write a cheque addressed to himself or "Bearer" for Rs 20,000. The cheque would specify the amount to be withdrawn and would need to be signed by Salim. Upon presenting this cheque at his bank, Salim would receive Rs 20,000 in cash.

Q2. Tick the correct answer. After the transaction between Salim and Prem, 
(i) Salim’s balance in his bank account increases, and Prem’s balance increases. 
(ii) Salim’s balance in his bank account decreases and Prem’s balance increases. 
(iii) Salim’s balance in his bank account increases and Prem’s balance decreases.
Ans. (ii) is correct.

When Salim writes a cheque to Prem, Salim's bank account balance decreases by the amount of the cheque (Rs 20,000 in this case). Simultaneously, Prem's balance increases by the same amount once he deposits the cheque into his own bank account. 
This is a basic principle of double-entry accounting where one account decreases (Salim's) and another increases (Prem's) by the same amount for the transaction to be balanced.

Q3. Why are demand deposits considered as money?
Ans: Demand deposits are considered as money for several reasons:

• They are funds held in bank accounts that can be accessed on demand.
• Depositors can withdraw these funds using cheques, debit cards, or electronic transfers.
• Demand deposits are highly liquid, meaning they can be quickly converted into cash.
• They are widely accepted as a medium of exchange, similar to cash.
• Due to these characteristics, they are included in broader definitions of the money supply.

Thus, demand deposits play a crucial role in the monetary system.

Page - 44

Q1. Fill the following table:

Ans:   

Q2. Supposing Salim continues to get orders from traders. What would be his position after 6 years?
Ans: If Salim continues to receive orders from traders and manages his finances wisely, his business position after six years could be quite strong. Key factors include:

• Consistent orders: Regular demand can lead to growth.
• Expansion: He may be able to broaden his operations and product range.
• Market presence: A strong reputation can enhance his competitiveness.
• Risk management: Success depends on effectively handling challenges like market fluctuations and loan repayments.

Overall, prudent management and sustained orders can significantly improve Salim's business prospects.

Q3. What are the reasons that make Swapna’s situation so risky? Discuss factors – pesticides; role of moneylenders; climate.
Ans: Swapna's situation is highly risky due to several factors:

• Pesticides: Relying on pesticides carries risks such as their effectiveness, environmental harm, and high costs. If pesticides fail, it can result in crop failures, affecting her income and loan repayment ability.
• Role of Moneylenders: Borrowing from moneylenders often means facing high interest rates and strict repayment terms. This adds financial stress, especially if her crop yields are low due to external factors like climate.
• Climate: Variability in climate can severely impact agricultural results. Unfavourable weather, such as droughts or floods, can lead to crop failures, directly affecting Swapna's income and her capacity to repay loans.

Page - 45

Q1: Why do lenders ask for collateral while lending?
Ans: Lenders ask for collateral to secure their loans against the risk of borrowers defaulting. This practice helps to:

• Reduce the lender's risk.
• Allow lenders to offer loans at lower interest rates compared to unsecured loans.
• Provide a form of guarantee that the lender can recover funds if the borrower fails to repay.

Common examples of collateral include property, vehicles, and bank deposits.

Q2: Given that a large number of people in our country are poor, does it in any way affect their capacity to borrow?
Ans: Yes, a large number of poor people in the country can greatly affect their ability to borrow. Here are some key points:

• Poverty often leads to limited access to formal financial institutions.
• Many poor individuals lack a credit history, making it hard to qualify for loans.
• They may not have sufficient collateral to secure loans from traditional lenders.
• This situation forces them to rely on informal sources of credit, which usually have higher interest rates and less favourable terms.

Overall, these factors create significant barriers for poor individuals seeking to borrow money.

Q3: Fill in the blanks choosing the correct option from the brackets:

While taking a loan, borrowers look for easy terms of credit. This means __________ (low/high) interest rate, ______________(easy/ tough) conditions for repayment, ___________(less/more) collateral and documentation requirements.

Ans. "While taking a loan, borrowers look for easy terms of credit. This means (low) interest rate, (easy) conditions for repayment, (less) collateral and documentation requirements."

Page - 50

Q1. What are the differences between formal and informal sources of credit? 
Ans. Formal sources of credit, such as banks and cooperatives, are regulated by the Reserve Bank of India (RBI). They offer:

• Lower interest rates
• Loans to various sectors
• Strict requirements for documentation

In contrast, informal sources, like moneylenders and friends, operate without regulation. They tend to:

• Charge higher interest rates
• Have fewer requirements
• Be more accessible, but costly for borrowers

Q2. Why should credit at reasonable rates be available for all? 
Ans. Credit at reasonable rates enables people to borrow affordably for essential needs like farming, business, and personal expenses. This accessibility supports economic growth by enabling investments that can enhance income. 
Conversely, high-interest rates from informal lenders can lead to:

• Excessive debt
• Reduced income
• Financial difficulties

Therefore, making credit available at reasonable rates is crucial for the development of individuals and the economy.

Q3. Should there be a supervisor, such as the Reserve Bank of India, that looks into the loan activities of informal lenders? Why would its task be quite difficult? 
Ans. Yes, a supervisor like the Reserve Bank of India (RBI) should oversee informal lenders to prevent exploitation through high interest rates and unfair practices.

However, this task is challenging due to several factors:

• Informal lenders vary widely in their practices and also operate in many areas, making monitoring difficult.
• Informal lenders lack regulation as they're not bound by strict rules.
• Monitoring requires significant effort and resources.
• Imposing regulations may face pushback from lenders.

Q4. Why do you think that the share of formal sector credit is higher for the richer households compared to the poorer households?
Ans. Richer households have greater access to formal sector credit for several reasons:

• They can provide collateral, which reduces the lender's risk.
• They are viewed as lower risk by banks, making them more likely to receive loans.
• They have a better understanding of banking procedures, allowing them to navigate the loan process more effectively.

In contrast, poorer households often face:

• They can't provide collateral creating higher barriers to accessing formal credit.
• They might not understand bank proceedings for formal credit. 
• Therefore they rely on expensive informal loans due to lack of collateral and understanding.

This disparity highlights the need for improved access to formal credit for poorer households.

Page - 52

Q1: In situations with high risks, credit might create further problems for the borrower. Explain.
Ans: In high-risk situations, taking on credit can lead to serious problems for borrowers. This is often referred to as a debt trap. Here’s how it works:

• When a borrower takes out a loan, they must pay back the principal amount plus an interest rate.
• If the borrower fails to repay, they risk losing their collateral, which is an asset pledged as security for the loan.
• In high-risk scenarios, adverse conditions can worsen the borrower's situation, leading to greater losses than if they had not taken the loan.

Ultimately, the burden of debt can push borrowers into a cycle of financial distress.

Q2: How does money solve the problem of double coincidence of wants? Explain with an example of your own.
Ans: Money solves the problem of double coincidence of wants by acting as a medium of exchange.

Double Coincidence

• Double coincidence of wants implies a situation where two parties agree to sell and buy each other’s commodities., i.e., what one party desires to sell is exactly what the other party wishes to buy.
• Money does away with this tedious and complex situation by acting as a medium of exchange that can be used for one and all commodities.
  Example: If an ice-cream vendor wants a bicycle, but the bicycle manufacturer wants clothes, and not ice-creams, then the vendor can use the money to obtain a bicycle.
• He does need to adhere to the bicycle man’s needs because money acts as the common medium of exchange. Similarly, the bicycle manufacturer can then use the money to buy clothes.

Q3: How do banks mediate between those who have surplus money and those who need money?
Ans: A bank plays a crucial role in connecting those with surplus money to those in need of funds. Here’s how:

• Banks allow individuals to open accounts for deposits and withdrawals.
• They keep only about 15% of cash reserves to meet daily withdrawal demands.
• Depositors earn interest on their surplus funds, encouraging them to invest.
• Banks use the majority of deposits to provide loans to borrowers.
• The difference between the interest charged on loans and the interest paid on deposits is the bank's main source of income.

Q4: Look at a 10 rupee note. What is written on top? Can you explain this statement?
Ans: A ten rupee note features “Reserve Bank of India” at the top, along with the statement “guaranteed by the central government.”

• It is a promissory note and can only be issued by the Reserve Bank of India which supervises all money-related functions in the formal sector, in India. 
• The statement on the ten rupee bank note relates to this idea that the RBI is the central organ in the working of money-related activities.

Q5: Why do we need to expand formal sources of credit in India?
Ans: Expanding formal sources of credit in India is essential for several reasons:

• It reduces reliance on informal sources that often charge high interest rates.
• The Reserve Bank of India oversees formal lending, ensuring better regulation.
• Informal loans can lead to a debt trap due to exorbitant interest rates.
• Currently, formal credit meets only about half of the rural population's needs.
• Increasing formal lending, especially in rural areas, can enhance overall economic development.

By expanding formal credit, we can help more people access loans at reasonable rates, promoting financial stability and growth.

Q6: What is the basic idea behind the SHGs for the poor? Explain in your own words.
Ans: The basic idea behind Self Help Groups (SHGs) is to provide financial resources to the poor by organising them, particularly women, into small groups. 

There are some main objectives of SHGs, which are as following:

• Organise the rural poor, especially women, into small groups.
• Collect savings from members.
• Provide loans without the need for collateral and offer timely loans for various needs.
• Charge reasonable interest rates with easy repayment terms.
• Serve as a platform to discuss social issues like education, health, and domestic violence.Self Help Group

Q7: What are the reasons why the banks might not be willing to lend to certain borrowers?
Ans: The Banks might not be willing to lend certain borrowers due to the following reasons:

• Banks require proper and legal documents and collateral as security against loans.
• The borrowers who have not repaid previous loans, the banks might not be willing to lend them further.
• For those entrepreneurs, who are going to invest in a business with high risks, the banks might not be willing to lend money.
• One of the main objectives of a bank is to earn more profits after meeting a number of expenses. 
• For this purpose, it has to adopt a judicious loan and investment policies that ensure fair and stable return on the funds.

Page - 53

Q8: In what ways does the Reserve Bank of India supervise the functioning of banks? Why is this necessary?
Ans: The Reserve Bank of India supervises the functions of banks in various ways:

RBI Functioning

• RBI holds part of the cash reserve of commercial banks. 
• RBI mainly ensures that the banks maintain a minimum cash balance out of the deposits they receive.
• The commercial banks have to submit information to RBI on how much they are lending, to whom, and at what interest rate, etc.
• RBI observes that the Banks are not only providing loans to profitable businesses but also to traders and small cultivators, small-scale industries, small borrowers, etc.
  

Q9: Analyse the role of credit for development.
Ans: Credit plays a crucial role in a country’s development. By sanctioning loans to developing industries and trade, banks provide them with the necessary aid for improvement. 

• This leads to increased production, employment, and profits. However, caution must be exercised in the case of high risks so that losses do not occur.
• This advantage of loans also needs to be manipulated and kept under an administrative hold because loans from the informal sector include high interest rates that may be more harmful than good.
• For this reason, it is important that the formal sector gives out more loans so that borrowers are not duped by moneylenders, and can ultimately contribute to national development.

Q10: Manav needs a loan to set up a small business. On what basis will Manav decide whether to borrow from the bank or the moneylender? Discuss.
Ans:  Manav will decide whether to borrow from the bank or the moneylender based on several key factors:

• Interest Rate: He will consider which option offers a more suitable rate.
• Collateral: Availability of collateral required by the bank is crucial.
• Documentation: The amount of paperwork needed by the bank can influence his choice.
• Repayment Terms: The mode and ease of repayment are significant factors.

Ultimately, these factors will help Manav choose the most beneficial option for his business needs.

Q11: In India, about 80 percent of farmers are small farmers, who need credit for cultivation.
(a) Why might banks be unwilling to lend to small farmers?
(b) What are the other sources from which the small farmers can borrow?
(c) Explain with an example how the terms of credit can be unfavorable for the small farmer.
(d) Suggest some ways by which small farmers can get cheap credit.
Ans:(a) Banks often hesitate to lend to small farmers due to the following reasons:

• They require proper documentation and collateral as security for loans.
• But there is the situation where small farmers frequently lack the necessary documents and assets to secure loans.
• Many small farmers struggle to repay loans on time, especially after crop failures.

(b) Apart from banks, the small farmers can borrow from local money lenders, agricultural traders, big landlords, cooperatives, SHGs, etc.

(c) For example, Gopal, a small farmer, borrowed money from a local moneylender at a high interest rate of 3% to cultivate rice. Unfortunately, a drought caused his crops to fail, forcing him to sell part of his land to repay the loan. This illustrates how unfavourable terms can severely impact small farmers.

(d) The small farmers can get cheap credit from different sources like Banks, Agricultural Cooperatives, and SHGs.

Q12: Fill in the blanks
(i) Majority of the credit needs of the __________households are met from informal sources.
(ii) __________costs of borrowing increase the debt-burden.
(iii) __________issues currency notes on behalf of the Central Government.

(iv) Banks charge a higher interest rate on loans than what they offer on __________.
(v) __________is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.
Ans:
(i) Majority of the credit needs of the poor households are met from informal sources.
(ii) High costs of borrowing increase the debt-burden.
(iii) Reserve Bank of India issues currency notes on behalf of the Central Government.
(iv) Banks charge a higher interest rate on loans than what they offer on deposits.
(v) Collateral is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

Q13: Choose the most appropriate answer.
(i) In a SHG, most of the decisions regarding savings and loan activities are taken by:
(a) Bank
(b) Members
(c) Non-government organisation
Ans: (i) (b)

 In a Self-Help Group (SHG), most decisions about savings and loans are made by the members of the group. They collectively manage the group's finances and decide on savings, loans, and other activities.

(ii) Formal sources of credit do not include
(a) Banks
(b) Cooperatives
(c) Employers
Ans (ii): (c)

Formal sources of credit typically include banks and cooperatives, while employers are not considered a formal source of credit.