Question

Arrange the following sources of credit in the most to least order to meet the credit requirement of rural households in India and choose the correct option:

1. Government
2. Cooperative Banks and Societies
3. Moneylenders
4. Relatives and friends

Options

• III, II, I, IV

• III, II, IV, I

• I, III, II, IV

• I, III, IV, II

Answer 1

III, II, IV, I

Explanation:

Among the given options, moneylenders (III) contribute the largest share to rural credit due to easy accessibility and minimal documentation, followed by cooperative banks and societies (II). Relatives and friends (IV) provide a smaller, informal share for personal requirements, while direct loans from the government (I) make up the least utilized portion.