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Why is the share of formal credit lower for poorer households?
Answer & Solution
Correct answer: C.
1. The poor often lack title to land, formal address proof and credit history.
2. Without collateral and paperwork, formal banks refuse them.
3. They fall back on informal moneylenders at high rates.
_Source: NCERT Class 10 Understanding Economic Development, Ch 3 "Money and Credit"_
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