Choose the correctly-matched pair of Chit Funds:

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Chit Fund comes under organized credit.

Chit Fund comes under unorganised credit.

Chit Fund comes with a discounted coupon.

Chit Fund comes under formal credit

answer is B.

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Detailed Solution

The correctly-matched pair of Chit Fund is it comes under unorganised credit.
The chit fund is associated chiefly with informal loan amounts from friends, relatives, and neighbours. Thus, chit funds come under unorganised credit. Any rules and regulations do not govern informal sources of credit. Since they are usually between moneylenders, family lenders, etc., they do not have any provision for supervision by the RBI. But, informal sources of credit usually charge a much higher rate of interest, and it is not fixed either, whereas formal sources of credit have a fixed interest rate. Chit funds are a type of credit and investment scheme based on personal wealth, making their credit unorganised.

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