Tag: commercial studies

The Onge tribe belongs to the Andaman islands. In tribes language, Onge means the perfect man. The other 2 tribes of Andaman islands are Jarawa and Great Andamanese. The resources in Onge tribe include water, food, wood. Gold is not a resource for Onge tribe. 

Barter system was a system of exchange where goods were exchanged for goods and there was no common medium of exchange in the economy. Barter system had many drawbacks like lack of double coincidence of wants, lack of a common unit of value, difficulty of future payments or contractual payments and difficulty of storage of value and transfer of value. Therefore, unemployment is not a problem related to barter system. 

Lack of double coincidence exists in barter exchange. It  refers to the situation where the mutual wants of the buyer and seller are less likely to be fulfilled simultaneously.  If the buyer's wants can be fulfilled by exchange but cannot provide what the seller wants, the exchange is unlikely to happen.

• Formal sources of credit are:
• Banks and Co-operative societies.
  
• Reserve bank of India will supervise the activities of the banks and co-operative societies in India.
  
• Employers do not fall under formal sources of credit lenders in our country.

• The interest charged by the bank from its borrowers is higher than the interest it pays to its depositors.

• The difference between the interest paid by the bank to its depositors and interest paid by the borrowers to the bank is the income of the bank.

We know $A = P + P.i.t$
i.e. $1050 = 1000 + 1000 \times i\times 6/12$
$50 = 500i$
$i = 1/10 = 10$%.