Social Studies LONG ANS. QUESTIONS(5 Mark)

The sources of credit have been divided into two categories i.e., formal and informal. The difference between the two is given in the following table:

Formal	Informal
These resources work under the supervision of the Reserve Bank of India (RBI).	These do not work under any government organisation.
The cost to the borrower is lower as compared to informal sources.	In-case of informal sources cost to the borrower is high.
The rate of interest is very low.	They lend at whatever interest rate they choose and is usually very high as compared to formal sources.
Commercial banks, cooperative societies, etc. are the main sources of formal credit.	Relatives, money lenders, and landlords are the main sources of informal credit.

Banks and cooperatives should increase lending facilities in rural areas because of the following reasons:
i. The formal sector i.e. the banks and the cooperatives need to engage more in the lending activities because of the disadvantages posed by the informal sector.
ii. The high cost of borrowing discourages many people who wish to start an enterprise. It also significantly reduces the income of the borrower as much of the earnings go into repayment of the loan.
iii. Dependence on informal sources of credit reduces.
iv. To provide more loan facilities to rural households.
v. To save rural people from exploitation. Often it leads to debt trap where the amount to be repaid is more than the borrower's income and he has to borrow more.
vi. It is important that the formal credit is distributed more equally so that the poor can benefit from the cheaper loans.
vii. The bank and the cooperative societies have to increase the lending facilities to improve the livelihood of the people in rural areas.

Functions of ruling party are as follows:
i. Parties contest elections. In most democracies, elections are fought mainly among the candidates put up by political parties. Parties select their candidates in different ways.
ii. Parties put forward different policies and programmes and the voters choose from them.
iii. Parties play a decisive role in making laws for a country.
iv. Parties form and run governments.
v. Those parties that lose in the elections play the role of opposition to the parties in power, by voicing different views and criticising government for its failures or wrong policies. Opposition parties also mobilise opposition to the government.
vi. Parties shape public opinion. They raise and highlight issues.
vii. Parties provide people access to government machinery and welfare schemes implemented by governments.

To face the challenges and deal with the problem areas, some political reforms are required which would strengthen the political parties so that they perform their function well.
• A law should be made to regulate the internal affairs of political parties.
• It should be mandatory for political parties to give a minimum number of tickets, about one-third to the women candidates.
• There should be state funding of elections.
• The government should give parties money to support the election expenses.
Examples of the efforts made for these political reforms are:
i. Defection Law: The Constitution was amended to prevent elected MLAs and MPs from changing parties. This was done because many elected representatives were indulging in defection in order to become ministers or for cash rewards. Now the law says that if any MLA or MP changes parties, he or she will lose the seat in the legislature. This new law has helped bring defection down. At the same time, this has
made any dissent even more difficult. MPs and MLAs have to accept whatever the party leaders decide.
ii. Disclosing Property Details: The Supreme Court passed an order to reduce the influence of money and criminals. Now, it is mandatory for every candidate who contests elections to file an affidavit giving details of his property and criminal cases pending against him.

Napoleon had destroyed democracy in France but in administrative field he had incorporated revolutionary principles in order to make the whole system more rational and efficient.
• The Civil code of 1804 also known as Napoleonic code spread to all countries including Switzerland, Italy and Germany.
• The Napoleonic code did away with privileges based on birth, established equality before the law and secured the right to property.
• Napoleon simplified administrative divisions thereby abolishing feudal system. He freed the peasants and other sections of society from serfdom and manorial dues.
• In the towns too, guild restrictions were removed.
• Transport and communications network improved and peasants, artisans, workers and businessmen enjoyed freedom that was gained due to Napoleon's uniform laws, standardized measures and weights, common currency system which facilitated the movement and exchange of goods from one region to another.

The following facts justify that the first half of nineteenth century were the years of hunger, hardship and revolts:
i. The 1830s were years of great economic hardship.
ii. The first half of the nineteenth century saw an enormous increase in population all over the Europe.
iii. In most countries of the Europe there were more job-seekers than employment.
iv. Population from rural areas migrated to the cities to live in overcrowded slums. Small producers in town were often faced with stiff competition from imports of cheap machine-made goods from England, where industrialization was more advanced than on the continent.
v. This was especially so in textile production, which was carried out mainly in homes or small workshops and was only partly mechanized.
vi. In those regions of Europe where the aristocracy still enjoyed power, peasants struggled under the burden of feudal dues and obligations.
vii. The rise of food prices or a year of bad harvest led to widespread anger in towns and country.
viii. In 1848, due to food shortage and unemployment the population of Paris started a revolution.

There is an urgent need to develop a sustainable path for energy development. The two broad measures to do it are:
i. Increased use of Renewable energy. Conventional sources of energy are exhaustible and harmful to the environment. The rising prices and limited supply make them an unreliable source of energy in the long run. Therefore, countries should shift to renewable energy resources like solar and wind energy.
ii. Promotion of energy conservation: The economic development of any country is dependent on the availability of energy resources. All sectors including agriculture, transport, industry, etc. require energy. Much of our sources of energy are conventional which have limited supply. So energy resources must be used judiciously. As concerned citizens, we can take the following steps:
a. Switching off electronic devices when not in use prevents unnecessary wastage of energy.
b. Taking public transport and engaging in activities like carpooling.
c. Using non-conventional sources of energy like installing a solar panel.

Coal is a naturally occurring black material which is a mixture of carbon and compounds of carbon-containing hydrogen, nitrogen, oxygen, and sulphur. Its formation is called fossilation. It is formed due to the compression of plant material (containing carbon, the major component of coal) over millions of years. Indian coal was mainly formed during two geological ages the Gondwana and the Tertiary ages. The Gondwana coal deposits (called 'metallurgical coal), which are more than 200 million years old, are located in the Damodar valley (West Bengal - Jharkhand), where Jharia, Raniganj, and Bokaro are important coal-fields. It is also found in the Godavari, Mahanadi, Son and Wardha valleys. The tertiary age deposits, only about 55 million years old, are mostly found in North- Eastern India in Meghalaya, Assam, Arunachal Pradesh, and Nagaland. Thus, the formation of coal is a long drawn process spread over various periods.