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Counter-Strike: Source (2004)

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Read the following sources and answer the questions that follow
Source A Informal Credit
Compared to the formal lenders, most of the informal lenders charge a much higher interest on loans. Thus, the cost to the borrower of informal loans is much higher. Higher cost of borrowing means a larger part of the earnings of the borrowers is used to repay the loan.
(i) To what extent, do you agree that credit from informal sector is not good for borrowers?
Source B Currency
Unlike the things that were used as money earlier, modern currency is not made of precious metal such as gold, silver and copper. And unlike grain and cattle, they are neither of everyday use. The modern currency is without any use of its own.
(ii) Why modern currency is unlike earlier forms of currency like grain or cattle?
Source C Loan Activities of Bank
There is an interesting mechanism at work here. Banks keep only a small proportion of their deposits as cash with themselves. For example, banks in India these days hold about 15 per cent of their deposits as cash.
(iii) In the above lines, which function of the bank is highlighted?

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