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Single Answer MCQ
Q-00045455

Which of the following is NOT a characteristic of informal credit sources?

1

Higher interest rates than banks

2

Flexibility in repayment

3

Demand for collateral

4

Lack of documentation requirements

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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. Demand for collateral

Solution:

The correct answer is 'Demand for collateral' because informal credit sources often do not require collateral, making them more accessible but riskier.

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