Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Which of the following is NOT included in the "Formal sources" of credit?

Options:

Banks

Cooperatives

Employers

None of the above

Correct Answer:

Employers

Explanation:

The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends. Thus, option 3 i.e. employers is the correct answers as it is not part of formal sources of loans.