Informal Sector Credit

Q.

Write the difference between formal and informal sources of credit or loans.

Q. Identify the informal sources of credit.

1. Banks
2. Local landlords
3. Friends
4. Cooperatives

Q.

Regulation of consumer credit is a quantitative credit control measure of the central bank. True or False.

Q.

___________________costs of borrowing increase the debt-burden.

Q. Rita availed a loan from the local moneylender at a high rate of interest. Which of the following is an impact of the high interest loan?

1. Easy repayment of the loan
2. No repayment of the loan
3. Repayment of a higher amount
4. Repayment of a lesser amount

Q. Thanu refused to take loans from the moneylender because of the .

1. high interest rate
2. tedious process
3. collateral required
4. low interest rate

Q. Which of the following sources of credit is monitored by any organisation?

1. Formal sector credit
2. Informal sector credit
3. Mutual credit
4. Trade credit