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State any three advantages of formal sources of credit.

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These institutions are regulated by the Reserve Bank Of India. Their rates of interest for loans are controlled. 1. The rates and terms are fixed.2. There is no exploitation by the lenders.3. Everyone can take a loan that includes big businessmen as well as the small cultivators or browser.
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These institutions are regulated by the Reserve Bank Of India. Their rates of interest for loans are controlled. 1. The rates and terms are fixed.2. There is no exploitation by the lenders.3. Everyone can take a loan that includes big businessmen as well as the small cultivators or browser. read less
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 How does demand influence investment decisions in an economy?

Higher demand encourages businesses to invest more in production to meet customer needs. If demand is low or uncertain, firms reduce or delay investment. So, strong demand boosts confidence and drives investment in the economy.
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