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Why do most rural households still rely on moneylenders?
Answer & Solution
Correct answer: D.
1. Banks require collateral, documentation and creditworthiness checks.
2. Many poor rural households lack collateral and paperwork.
3. Moneylenders offer quick, paperwork-free loans, but at very high interest.
_Source: NCERT Class 10 Understanding Economic Development, Ch 3 "Money and Credit"_
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