Formal sources of credit does not include

The correct answer is Employers.

Key Points

• Formal sources of credit do not include employers as there is no role of these employers all these works are related to banks and cooperatives.
• Employers are there merely to serve the bank staff and do the work as it is asked to do by their owners.
• The informal sources include all small and scattered units that are generally beyond the government’s control, they must obey its laws and regulations.
• Profit-making is the primary motive for informal sources.
• There is no organization that controls credit activities in informal sources.
• They charge much higher interest rates for informal sources.
• Examples: Moneylenders, merchants, workers(Employee), relatives and friends etc.