Formal sources of credit in India include
Answer & Solution
Correct answer: C.
1. Formal sector: banks (commercial, cooperative) and other regulated lenders.
2. Informal: moneylenders, traders, employers, relatives, friends.
3. Formal sector charges lower interest and is regulated by RBI.
_Source: NCERT Class 10 Understanding Economic Development, Ch 3 "Money and Credit"_
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