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Question
Formal sources of credit does not include ______.
Options
Banks
Cooperatives
Employers
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Solution
Formal sources of credit does not include Employers.
Explanation:
Formal sources of credit include legally recognised financial entities such as banks and cooperatives, which are subject to tight government control and inspection. Employers are an informal source of credit since their lending procedures are unregulated, lack conventional documentation, and rely only on personal ties rather than official financial guidelines.
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