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Question
Majority of the credit needs of the ______ households are met from informal sources.
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Solution
Majority of the credit needs of the poor households are met from informal sources.
Explanation:
Poor households lack the assets and formal documents that commercial banks require as collateral for loans. As a result, they are compelled to rely on local moneylenders and landlords who give rapid cash based on personal relationships while charging exploitatively high interest rates.
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