Why do moneylenders often lend without collateral?
AThey follow RBI rules
BThey know borrowers personally
CThey charge no interest
DThey keep careful records
Answer & Solution
Correct answer: B. They know borrowers personally
Moneylenders know the borrowers personally, so they are willing to lend without security.
Keep practising Economic Development & Banking
Browse all Economic Development & Banking questions for CBSE Class 10, or explore more Social Science topics.
Related questions
What must every e-commerce entity display under the 2019 Act?Which authority was set up under the Consumer Protection Act, 2019?What is a mediator in consumer disputes?Which is a weakness of the consumer redressal process in India?Why is evidence hard to gather in many small purchases?Roughly how many consumer groups exist in India, per NCERT?Which of these goods must be certified before sale in India?For which product is certification mandatory for producers?