Question

Why are street vendors chronically in debt?

• A. They pay interest after borrowing money from moneylenders.
• B. Banks do not lend money to street vendors.
• C. They borrow money from banks.
• D. They do not have access to facilities like refrigerators to preserve unsold produce.

Answer 1

Answer: (A), (B), (D)

The correct options are
A They pay interest after borrowing money from moneylenders.
B Banks do not lend money to street vendors.
D They do not have access to facilities like refrigerators to preserve unsold produce.

Street vendors are trapped in a debt trap because they have to pay interest after borrowing money from moneylenders. Banks do not generally lend money to street vendors. Moreover, they sell perishable goods like vegetables. Unlike the large traders, they do not have access to facilities like refrigerators to preserve unsold vegetables.