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Q.

The poor households are still dependent on informal sources of credit. Why is it so?

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a

Lack of banks

b

Lack of collaterals

c

Lack of funds

d

Lack of stable income.

answer is B.

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Detailed Solution

Ans: B


Explanation:

As we know, bank loans require proper documents and collateral. Absence of collateral is one of the major reasons which prevents the poor from getting bank loans.


 

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