Institutions that engage in the mobilisation and allocation of savings are called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Financial institutions
Financial institutions collect people’s savings and lend them out. Commercial banks, cooperative banks and development banks are examples.
Marketing cooperatives and regulated market yards deal with selling farm produce. Policy instruments are tools such as minimum support prices.
NCERT (2026-27): Glossary: “Financial Institutions – Institutions that engage in mobilisation and allocation of savings. They include commercial banks, cooperative banks, developmental banks and investment institutions.” |