Which of the following is NOT included in the "Formal sources" of credit? |
Banks Cooperatives Employers None of the above |
Employers |
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. |