Which of the following is NOT a part of informal sources of credit?

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Cooperatives

Moneylenders

Employers

Relatives

answer is A.

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Detailed Solution

Cooperatives are not a part of the informal sources of credit. It is a part of the formal source of credit. The sources of loans that are not regulated by any supervisory authority are called informal sources. Moneylenders, friends, relatives, landlords, and tradespeople are a few examples of informal sources of credit. As any authority does not supervise them, the rate of interest they charge is usually high. Most people from rural areas approach these informal sources, as such sources don't ask for any collateral or documents. However, this easy source of loans comes at a price, and that is a high rate of interest.

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