State with reasons whether you agree or disagree with the following statements:

Unproductive loans are economically justified.

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1 Answers

No, I do not agree with the statement.

  • Productive loans are economically justified as they are used for production purposes. 
  • Unproductive loans are used for personal consumption and are not related to productive activity. 
  • Eg. loans for expenditure on marriages or religious ceremonies. 
  • Thus, unproductive loans are not economically justified.
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