The terms of credit vary substantially from one credit arrangement to another Consider the following...........

The terms of credit vary substantially from one credit arrangement to another. Consider the following statements related to various credit arrangements.

1. Loans from Money lenders, traders and cooperatives are informal loans.

2. Informal sector is largest credit lender outperforming commercial banks.

3. The Reserve Bank of India supervises the functioning of formal sources of loans.

Select the correct statements using the codes given below.

1 and 2 only

1 and 3 only

2 and 3 only

All of the above

Explanation:

The various types of loans can be conveniently grouped as formal sector loans and informal sector loans. Among the former are loans from banks and cooperatives. The informal lenders include moneylenders, traders, employers, relatives and friends, etc.