Page 2 - HA

C. A is correct but R is wrong.
D. A is wrong but R is correct.
5 There is no organization which supervises the credit activities 1
of the lender in the informal sector. They can lend at whatever
interest rate they choose. There is no one to stop them from
using unfair means to get their money back.
Analyse the loan information given above, considering one of
the following correct option.
(a) Higher rate of interest charged by informal sector or
credit.
(b) Banks charges less rate of interest.
© RBI should monitored informal sector of credit
(d) both b and c.
6 Q. Banks come under the ____ sector of credit. 1 39
(a) Formal
(b) Informal
(c) Secondary
(d) Primary
7 Formal sources of credit do not include: 1 39
(a) Banks
(b) Co-operatives
(c) Employers
(d) LIC
8 Which agency is not included in informal loan sector or 1 39
agency:
(a) Bank
(b) Village money lender
(c) Trader
(d) Relative of borrower

QUESTIONS

SR. QUESTION MARKS PAGE
NO. NO.
1 Q- What are the two different sectors of credit? 1 48
2 Q-Mention any two formal sources of credit? 1 48
3 Q-Mention the informal sources of credit? 1 48
4 Q- In what ways, the Reserve Bank of India supervise the 3 48
functioning of banks? Why is it necessary?