Money and credit Class 10th NCERT (cbse)
Money and credit Class 10th NCERT (cbse) Question 1: In situations with high risks, credit might create further problems for the borrower. Explain? Answer: High-risk situations occur in rural areas because there the main demand for credit is for crop production which involves considerable costs on seeds, fertilisers, pesticides, water, electricity, repair of equipment. There is a minimum stretch of three of four months between the time when farmers buy these inputs and when they sell the crop. Farmers generally take crop loans at the beginning of the season and repay the loan after harvest. Repayment of the loan is crucially dependent on the income from farming. If a crop fails due to shortage of rain or for any other reason, a small farmer has to sell a part o...




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