Question
Social Science Question on Money and Credit
Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements and choose the correct option.
Assertion (A): Rural poor families are still dependent on informal sources of credit.
Reason (R): For obtaining loans from banks, collateral and special documents are required.
A
Both (A) and (R) are true, and (R) is the correct explanation of (A)
B
Both (A) and (R) are true, but (R) is not the correct explanation of (A)
C
(A) is true, but (R) is false
D
(A) is false, but (R) is true
Answer
Both (A) and (R) are true, and (R) is the correct explanation of (A)
Explanation
Solution
Rural families often depend on informal credit sources due to difficulties in accessing formal loans, which require collateral and proper documentation.