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Q.

[[1]] is the agreement that is made with the promise of future repayment.


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Detailed Solution

Credit is an agreement that is made with the promise of future repayment. Most small farmers and producers in rural areas require credit (loans) to buy raw materials and start production. Daily wage labourers, construction workers, and unorganised sector workers need credit to fulfil their daily requirements in urban areas. These people borrow money from formal sources, including banks and cooperatives, or from informal sources, including moneylenders and traders.
 
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