Single Answer MCQ
Q-00045475
Which of the following statements describes informal credit sources?
1
They are regulated by government authorities
2
They often charge higher interest rates
3
They include banks and cooperatives
4
They do not require any repayment
Answer and Solution
Answer
B. They often charge higher interest rates
Solution:
Informal credit sources, such as moneylenders and traders, typically charge higher interest rates due to the lack of regulation and oversight compared to formal lending institutions.
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