Question

Which statement best distinguishes institutional from non-institutional sources of agricultural credit?

Options

• Institutional sources operate under government regulation; non-institutional sources do not.

• Both sources are equally regulated by the government.

• Non-institutional sources offer only large loans.

• Institutional sources are only found in urban areas.

Answer 1

Institutional sources operate under government regulation; non-institutional sources do not.

Explanation:

Institutional sources are monitored and regulated by the government, ensuring fair and safe lending.