Question

Select the formal sources of credit from the given sources and choose the correct option.
Sources:
1. Bank,
2. Moneylender,
3. Cooperatives,
4. Businessman

• A. Only I and II
• B. Only II and III
• C. Only I and III
• D. Only I and IV

Answer 1

Answer: (C)

Only I and III

Answer 2

Formal sources of credit include institutions like banks and cooperatives, which operate under government regulations and provide loans at reasonable interest rates.