Question

Which of the following is not an informal source of credit?
(a) Money-lender
(b) Relatives and Friends
(c) Commercial Banks
(d) Traders

Answer 1

Answer:

Option (c) commercial banks. is the correct answer

Answer 2

• Commercial banks are not an informal source of credit.
• Commercial banks give credit to the customers by taking the funds from the account of the customers who deposit the money at the bank.  
• Formal source of credit charge low-interest rate.
• The credit system is regulated by the government.
• These formal sources please a vital role in the development of the economy.  
• These banks play a role in the creation of credit which helps to increase production, employment, and spending.