Single Answer MCQ
Q-00015899
Why is formal credit important for small scale industries?
1
It is more flexible than informal loans
2
It provides lower interest rates and regulates lending
3
It requires no documentation
4
It guarantees profit for businesses
Answer and Solution
Answer
B. It provides lower interest rates and regulates lending
Solution:
Formal credit provides lower interest rates and is subject to regulatory oversight, making it safer for small scale industries than informal sources.
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