Edzy
Single Answer MCQ
Q-00045459

What can be considered a formal source of credit?

1

Moneylenders

2

Banks

3

Friends

4

Family

Reviewed & Verified by Edzy Expert

Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

B. Banks

Solution:

Banks are considered a formal source of credit as they operate under regulations and provide structured loan products, unlike informal lenders such as moneylenders, friends, and family.

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

Q1

Small farmers often face challenges in accessing credit due to what reason?

Single Answer MCQ
View explanation
Q2

A cooperative society provides loans primarily to which group?

Single Answer MCQ
View explanation
Q3

Which factor is crucial in determining the interest rate on a loan?

Single Answer MCQ
View explanation
Q4

If a borrower defaults on a loan, what may happen to their collateral?

Single Answer MCQ
View explanation