Which of the following statements is true?
Statement 1- Non-institutional sources of rural credit consists of a set of multiagency institutions.
Statement 2- Institutional source of rural credit includes money lenders, commission agents etc.
Answer & explanation
Correct answer: option 4
The correct answer is Option 4: Neither statement 1 nor statement 2 is true
The sources of rural credit can be classified into 2 heads:
- Institutional - These sources of rural credit consists of a set of multiagency institutions like Cooperative credit societies, Land development banks, Regional rural banks, Commercial bank credit, Self help groups.
- Non-institutional -These sources include Money lenders, Traders and Commission agents, Landlords and Relatives etc.