All of the following reasons can be attributed to the lack of access to credit for the poor EXCEPT:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. low information monitoring costs.
Low information monitoring costs cannot be attributed to the lack of access to credit for the poor. The other factors are common barriers:
- Lack of stable source of income makes it risky for lenders to provide credit.
- Lenders prefer dealing in large loans to minimize administrative costs.
- Absence of collateral with clear title makes it difficult to secure loans.
High information monitoring costs would actually increase barriers to credit access, not decrease them.