Match the columns.

Matrix:

Column I

Column II
(a)
Money lender
(i)
Formal Source
(b)
Commercial Bank
(ii)
RBI
(c)
Issues currency notes
(iii)
Informal Source

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a-iii; b-ii; c-i

a-i; b-ii; c-iii

a-iii; b-i; c-ii

a-ii; b-i; c-iii

answer is C.

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Detailed Solution

Moneylenders are an informal source of credit because they require no proper documentation or paperwork to hand over a loan to a borrower. In contrast, commercial banks are a formal source of credit because they require collateral from the borrower on top of all the paperwork and documentation requirements for furnishing a loan to the borrower. Formal authorities usually charge a lower interest rate and thus help increase the borrowers' income. The Reserve Bank of India (RBI) is the country's central bank, and therefore, it is entitled to the power of issuing currency notes so that the Indian currency is in uniform circulation throughout our country.

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