Question

What is an informal sector of credit? Give example.

Answer 1

Answer:

Landlords, moneylenders, traders, relatives, friends and other sources of credit constitute the informal sector of credit. Informal sources of credit have: *Very high rates of interest. *No external organization to control the sector.M

Answer 2

Explanation:

EXAMPLE OF INFORMAL SECTOR OF CREDIT : money lenders, traders employers, relatives,friends etc.

✯ they charge high interest on loans, as a result, the coast to the borrowers of informal loans is also very high.

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