Q.Give reasons: A credit co-operative society encourages the habit of thrift among its members.

Thrift is not a side-effect for a credit society — it is central to how the society works and survives.

It is true that a credit co-operative society actively encourages the habit of thrift, and there are sound reasons for this:

1. Savings are the source of loans. The society has no outside owner supplying capital; the fund it lends is built up almost entirely from members' own savings and deposits. Unless members save regularly, there is no money to lend, so promoting thrift is a matter of the society's very survival.
2. It makes members self-reliant. A member who saves regularly gradually builds his own resources and depends less on borrowing. This develops financial discipline and independence — the true spirit of self-help.
3. It frees members from debt. A person with savings is far less likely to fall into the hands of the moneylender in an emergency. By building the saving habit, the society protects members from future exploitation. …

A 'give reasons' answer must actually give reasons, not just repeat the statement. Justify each reason wi …