Question

Write the 2 informal source of credit.Give 2 reasons why people depend on informal sector.

Answer 1

The two informal sources of credit are

1. moneylenders.

2. In relationship

Answer 2

1.Friends

2.Moneylenders

People depend upon informal due to certain reasons i.e.

1.Poor people do not have collateral so they depend on moneylenders.

2. People think banks were bot friendly and do not provide money properly.

so they depend on informal sector.