Economics · Banking Regulation

RBI mandates NABARD to manage the Rural Infrastructure Development Fund (RIDF) primarily to correct which market failure?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Time inconsistency
2Adverse selection
3Moral hazard
4Credit rationing✓

Correct answer

Credit rationing

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RBI mandates NABARD to manage the Rural Infrastructure Development Fund (RIDF) primarily to correct which market failure?

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