Question

Which of the following is the source of non-institutional finance?

• A. Regional Rural Bank
• B. Land Development Bank
• C. Moneylender
• D. Cooperative Bank

Hint:

Non-institutional sources include moneylenders, traders, and relatives, whereas institutional sources include commercial and cooperative banks.

Answer 1

The Correct Option is C

Non-institutional finance refers to credit provided by informal sources that are not regulated by the government or central banking authorities. These sources typically operate on personal trust and often charge higher interest rates.

Step 1: Analyze the options.
(A) Regional Rural Bank: These are formal financial institutions regulated by the government to provide credit to rural areas.
(B) Land Development Bank: These are institutional sources that provide long-term credit to farmers for land improvement.
(C) Moneylender: This is a non-institutional source. Moneylenders operate independently of the formal banking system and legal framework.
(D) Cooperative Bank: These are organized financial institutions run by members under a formal credit structure.

Step 2: Conclusion.
The correct answer is (C) Moneylender, as it is an informal source of finance.
Final Answer: \[ \boxed{(C) \, \text{Moneylender}} \]