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What share of loans taken by poor urban households comes from informal sources?

A15 per cent
B50 per cent
C25 per cent
D85 per cent
Answer & Solution
Correct answer: D. 85 per cent
1. Rich households borrow mostly from banks. 2. 85 per cent of poor households' loans are informal. 3. Cheap credit is crucial for development. _Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._
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