which of the following household constitutes the largest segment of borrowers in the formal sector of credit?
1)poor households
2)rich households
3)well off households
4)households with few assets
Answers
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Answer:
4) household with few assets
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0
Answer:
The correct answer is Option 2 : Rich households.
Explanation:
- Richer families have a greater proportion of formal sector loans because they are better able to provide collateral and other paperwork that banks and cooperatives require.
- Wealthier families can put pressure on banks and cooperatives to approve loans.
- In comparison to poorer households, wealthier households have a stronger ability to repay debts.
The formal sector includes bank and cooperative loans. The Reserve Bank of India (RBI) oversees their loan-giving functions.
Rich urban residents rely heavily on formal credit sources. When compared to other forms of credit, formal sector loans have a lower rate of interest.
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