Question : Statement 1: Institutional sources of credit provide farmers with flexible repayment options.
Statement 2: Institutional sources of credit offer longer loan tenure compared to informal sources.
Option 1: Both statement 1 and statement 2 are true.
Option 2: Both statement 1 and statement 2 are false.
Option 3: Statement 1 is true, but statement 2 is false.
Option 4: Statement 1 is false, but statement 2 is true.
Correct Answer: Both statement 1 and statement 2 are true.
Solution : The correct answer is (a) Both statement 1 and statement 2 are true.
Institutional sources of credit can provide farmers with flexible repayment options, allowing them to choose repayment terms that suit their financial situation. Additionally, these sources often offer longer loan tenures compared to informal sources, providing farmers with more time to repay their loans.
Question : Statement 1: Institutional sources of credit offer flexible repayment schedules to accommodate farmers' cash flows.
Statement 2: Institutional sources of credit require farmers to provide collateral for loan approval.
Question : Statement 1: Institutional sources of credit offer lower interest rates compared to informal sources.
Statement 2: Institutional sources of credit provide farmers with financial counseling and guidance.
Question : Statement 1: Institutional sources of credit provide farmers with timely access to credit facilities.
Statement 2: Institutional sources of credit have simplified loan application procedures.
Question : Statement 1: Institutional sources of credit include banks, cooperatives, and government programs.
Statement 2: These institutions provide credit to farmers at high-interest rates.
Question : Statement 1: Institutional sources of credit provide loans at lower interest rates compared to informal sources.
Statement 2: They have access to funds from government schemes and financial institutions.
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