Question

Why do you think poor
householders require
more of these banks?
As credit requirement
are more in villages.
There is greater
demand of formal
sources of credit,
Because moneylenders
help them
As the farmers are
wealthy​

Answer 1

Explanation:

Formal sector is the main source of credit for rich urban households in India. The Reserve Bank of India supervises the functioning of formal sources of loans. The banks maintain a minimum cash balance out of the deposits they receive. The rest of the money is given out as loans.