9th Class Social Science The Story of Village Palampur Question Bank Case Based (MCQs) - The Story of Village Palampur

  • question_answer
    Read the source and answer the following.
    Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the loan. In contrast to the small farmers, the medium and large farmers have their own savings from farming. They are thus able to arrange for the capital needed.
    Why small farmers have to borrow money to arrange for the capital?
     

    A) To pay high rate of interest.

    B) Their savings are less.

    C) Farm inputs are high priced.

    D) To maintain good relations with moneylenders.

    Correct Answer: B

    Solution :

    [b]


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