Rita owns a small flower shop near a temple. She wants to expand her shop by keeping exotic flowers and flower bouquets. To whom she should approach for very short-term credit?

A
Moneylenders as they provide short-term credit.
B
Banks as they charge low interest.
C
Cooperatives as they do not require collateral.
D
Any of the above

Solution:

She should approach any of the above for very short-term credit.

Loans from Moneylenders: Small farmers borrow money from local moneylenders at a hefty interest rate. They become debt-trapped as a result of the high-interest rate.

Bank Loans: Some farmers obtain a bank loan for cultivation at a relatively low-interest rate and with simple repayment terms. Other facilities are also provided to such borrowers from banks.

Cooperative loans are the most common source of low-cost financing in rural communities. Loans to cooperative society members can be used to acquire agricultural implements, agriculture and agricultural trade, fishing, housing construction, and other expenses.