wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

Formal source of credit does not include _____?


Open in App
Solution

Answer:

Government-authorized institutions that are able to lend money to individuals are structured providers of credit. Expanding formal credit sources in India is essential since informal sources are not registered and lend loans to consumers at very high-interest rates, which would be unfair and should not be practised.

Formal sources of credit do not involve employers as these activities are linked to banks and cooperatives because there is no role for all of these employers. Employers are there only to represent the employees of the bank and do the job as their employer is expected to do.


flag
Suggest Corrections
thumbs-up
4
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Introduction to Small Business
BUSINESS STUDIES
Watch in App
Join BYJU'S Learning Program
CrossIcon