Credit in developing countries can be granted through formal or informal channels. formal channels include institutions such as banks, credit cooperatives, and government agencies. loans of this type accrue positive interest and are typically court enforced. informal credit channels include relatives, friends, community members, moneylenders, rotating savings and credit associations, and informal intermediaries. loans such as these may or may not accrue positive interest. loans of either type may be used by the borrower for consumption or investment in a business?
Solved
Show answers
More tips
- H Health and Medicine Hangover: How to Get Rid of It Quickly?...
- S Style and Beauty How to Choose the Right Fur Coat and Avoid Regrets?...
- C Computers and Internet How to Create a Folder on Your iPhone?...
- G Goods and services How to sew a ribbon: Tips for beginners...
- F Food and Cooking How to Make Mayonnaise at Home? Secrets of Homemade Mayonnaise...
- C Computers and Internet Which Phone is Best for Internet Surfing?...
- F Food and Cooking Everything You Need to Know About Pasta...
- C Computers and Internet How to Choose a Monitor?...
- H Horoscopes, Magic, Divination Where Did Tarot Cards Come From?...
Answers on questions: Business
- B Business A competitive firm maximizes profit at an output level of 500 units, market price is $36.00, and ATC is $36.95. At what range of AVC values for an output level of 500 would the...
- S Social Studies Bad firms a. do not have an incentive to make themselves look good. b. will slant the information they are required to transmit to the public. c. both do not have an incentive...
- E Engineering In.order.for a route poisoning or ARP poisoning attack to work, what device on the network are you pretending to bet? After you use Cain to scan and add devices to the tool, identify...
- H History A historian comparing sculptures from Ancient Greece and ancient Rome would most likely be trying to demonstrate...
Ответ:
Yes they can be used to purchase goods or invest in a business.
Explanation:
Loans from formal channels like banks and government agencies are usually given for an specific purpose if you own a business or can be handed out for any type of personal use if you request them as an individual. This applies to developed and developing countries.
Loans from informal channels can also be used by a business, specially small businesses, and obviously personal use. Large businesses will probably not take a loan from an informal channel since the interest rates will probably be higher and the amounts will be too small. But even on developed countries, someone who has just graduated can ask his/her parents or a friend for a loan to start a small business or buy a car. Informal channels are based on personal relationships and even though they don't represent a large percentage of loans in developed countries, they also exist.
Ответ: