Question

Identify the incorrect option from the following statement:
a. In the formal sector,RBI supervises their function of giving loans.
b. The rate of interest in the formal sector is lower than that of the informal sector loans
Collateral is required to cbtain credit in the formal sector.
d. The main motive of the formal sector is making only profit,​

Answer 1

Answer:

Formal sources of credit do not include ___________.

Medium

Answer

Correct option is

C

Employers

Formal sector credit in India includes loans from banks and cooperatives. RBI supervises their functions of giving loans. Rich urban households depend largely on formal sources of credit. Lower rate of interest on loans is charged as compared to informal sources of credit.