Question

Two statements are given below. They are Assertion (A) and Reason (R). Read both the statements and choose the correct option.
Assertion (A): Rural poor families are still dependent on informal sources of credit.
Reason (R): For obtaining loans from banks, collateral and special documents are required.

• A. Both (A) and (R) are true, and (R) is the correct explanation of (A)
• B. Both (A) and (R) are true, but (R) is not the correct explanation of (A)
• C. (A) is true, but (R) is false
• D. (A) is false, but (R) is true

Answer 1

The Correct Option is A

Access to formal loans is challenging for rural families, as these often necessitate collateral and documented proof, leading them to rely on informal credit.