Question

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Answer 1

a. Majority of credit needs of the rural households are met from informal sources.

b. Higher cost of borrowing increase the dept- burden.

c.R.B.I issue currency notes on behalf of the central government.

d. Bank charge a higher interest rate on loans than what they offer on informal sources.

e. Landlord is asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.

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Answer 2

Answer:

A} RURAL

B}HIGHER

C}R.B.I

D}INFORMAL SOURCE

E}LANDLORD

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Explanation: