Question

Why are formal sources of credit prefered over the informal sources of credit ? Give three reasons
PLEASE ANYONE DO ANSWER ME AS MUCH AS POSSIBLE.


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Answer 1

Explanation:

$formal \: source \: of \\ \: credit \: prefered \\ \: over \: the \: informal \: source \: of \: creid \\ because =$

• Formal source have low cost of borrowing
• Higher income through cheap borrowing
• No exploitation
• no dept trap
• relevent points

Answer 2

$answer : )$

Explanation:

• Formal source have low cost of borrowing
• Higher income through cheap borrowing
• No exploitation
• no dept trap
• relevent points

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