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Q.

Choose given statement True/False:

All farmers do not obtain their capital in the same way.

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a

True

b

False

answer is A.

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Detailed Solution

The above statement is true.
All farmers do not obtain their capital in the same way. The medium and large farmers use their savings from the past year to buy inputs in the present. They do not have to borrow money to fulfil their working capital requirement. The small farmers do not have enough savings to use as capital. They either borrow from the large farmers or the local moneylenders. The local moneylenders provide them with money but charge a high-interest rate. The farmers find it impossible to repay the debt. Sometimes, the loan requires a significant share in the produce of these small farmers.

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