Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Rural Development

Question:

Why were the poor rural households automatically out of the credit network?

Options:

Due to social stigma attached to poor

Due to inadequate banking infrastructure

Due to requirement of collateral

All of the above

Correct Answer:

Due to requirement of collateral

Explanation:

Since, some kind of collateral was required, vast proportion of poor rural households were automatically out of the credit network due to unavailability of collateral.