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Single Answer MCQ
Q-00045432

What is a key factor that limits access to formal credit?

1

High income

2

Low interest rates

3

Poor credit history

4

Excessive funds

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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

C. Poor credit history

Solution:

A key factor that limits access to formal credit is a poor credit history, which may make lenders hesitant to offer loans to the borrower.

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