Question

Banks and Cooperative societies need to lend more. This would result in : *

1 point

A. Increase in the interest rates

B Higher incomes and many people can borrow cheaply for a variety of needs.

C increase possibility of borrowers falling in debt trap

D Rich people getting the maximum benefits.​

Answer 1

Answer:

(B) will be the answer.

Explanation:

Most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrowers. Thus, it is necessary that banks and cooperatives increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces.