Question

"The credit activities of the informal sector should
be discouraged." Support the statement with
arguments.
with conculsions
​

Answer 1

the credit activities of the informal sector should be discouraged because if we take loan from informal sector so they charge very high rate of interest which in turn increases the cost of money which is to be repaid back.Sometimes the amount to be repaid is greater than the income of the borrower. There are no boundaries and restrictions