Multiple choice

Most loans from informal lenders carry a very high interest rate and do little to increase the income of the

  1. borrowers

  2. lenders

  3. people

  4. buyers

  5. None of these
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A Correct answer
Explanation

Most loans from informal lenders carry a very high interest rate and do little to increase the income of the borrowers. Thus, it is necessary that banks and cooperatives increase their lending particularly in the rural areas, so that the dependence on informal sources of credit reduces. 

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