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Single Answer MCQ
Q-00045477

What kind of loans are typically considered 'formal' credit?

1

Loans from family members

2

Loans from moneylenders

3

Bank loans and cooperatives

4

Borrowing from friends

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Sandeep Chaturvedi

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Answer and Solution

Answer

C. Bank loans and cooperatives

Solution:

Formal credit refers to loans provided by recognized financial institutions like banks and cooperatives, which follow legal and regulatory requirements.

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