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Fixing Formal Credit

Most of the c...

Question

Most of the credit needs of poor households in urban and rural areas of India are met by __________.

A

cooperative banks

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B

commercial banks

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C

informal sources of credit

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D

formal sources of credit

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Solution

The correct option is C informal sources of credit
Poor households do not have assets to provide as collateral. So, they have to seek help from the informal sources of credit.

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