Question

Which among the following options will be the cheapest source of credit in rural areas?
(a) Bank
(b) Cooperative Society
(c) Money-lender
(d) Finance Company

Answer 1

Answer:

I think cooperative society is cheapest source of credit

Answer 2

The cheapest source of credit in rural areas is cooperative societies.

• A cooperative society is a society formed by the members to raise capital and help assist each other in making financial decisions.
• The members of the cooperative society are responsible for raising the finances themselves with the help of the government or any other non-government organisations.
• Cooperation-government are is formed to help the weaker section of the societies to stop getting exploited by the wealthy individuals and companies.
• It runs on the principle of self-help and is a non-profit organisation.

The answer is(b) Cooperative Societies.