Question

what is the difference between formal sector and informal sector

Answer 1

formal are governed by government .
information are not governed by government.

Answer 2

"Difference between formal sector and informal sector is given below.

Formal sector:      

• All the functioning and activities that are directly under the control of the government, it is called a Formal sector.
• Examples of this sector are loans provided form bank and cooperatives.
• All the activities in this sector are tax payable ones.
• No interest or less interest is given.

Informal sector:      

• All the functioning and activities that are not under the control of the government, it is called an Informal sector.  
• Examples of this sector are loans or money obtained from money lenders, traders, relatives etc.  
• No tax is imposed on activities of this sector.  
• A very high rate of interest is imposed."