Question 1
Which of the following statements regarding the "Unorganized Financial Market" in India is TRUE? I. It includes Money Lenders and Indigenous Bankers. II. It is fully regulated by the RBI. III. Its interest rates are typically lower than the organized sector.
View Explanation
The Unorganized Financial Market comprises Money Lenders, Indigenous Bankers, and Nidhi companies. Unlike the organized sector (Banks, NBFCs), it is largely unregulated by the RBI (Statement II is false). Furthermore, interest rates in this sector are typically much higher, not lower, than the organized sector due to higher risk and lack of collateral (Statement III is false).
