ECONOMICS
CREDIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks
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Cooperative Societies
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Money Lender
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All of these
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Detailed explanation-1: -Local landlords and friends are examples of informal sources of credit. Banks and cooperatives are examples of formal sources of credit.
Detailed explanation-2: -Answer: Moneylenders are the most dominant amongst sources of credit for rural households. They constitute an informal source of credit. They charge a very high rate of interest on loans as they do not require any collateral. They are the most convenient source of credit in the rural areas.
Detailed explanation-3: -Informal sources may produce publications in the form of blogs, personal websites, and related “non-official” documents. For example, a retired professional football player may produce a blog about his health challenges since retirement, and some of that information may be related to head injuries.
Detailed explanation-4: -Loved by our community. EXAMPLE OF INFORMAL SECTOR OF CREDIT : money lenders, traders employers, relatives, friends etc. ✯ they charge high interest on loans, as a result, the coast to the borrowers of informal loans is also very high.