Choose the given statement is True/False
Small farmers borrow money from banks.

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True

False

answer is B.

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Detailed Solution

The given statement is false.
One of the ingredients that a person needs to invest in manufacturing is capital. No matter how big or small, any business has to arrange funds before it can begin operations. To purchase the different inputs necessary for agriculture, such as pricey seeds, fertilisers, equipment, herbicides, etc., farmers must set aside funds. Therefore, a little farmer must borrow money from the village's large farmers, money lenders, or traders. They borrow money from them at a high interest rate to invest in their business, but occasionally they find themselves unable to pay back the loan, which traps them in a cycle of debt. The medium and enormous farms, on the other hand, already have their savings. Hence the correct statement would be, Small farmers borrow money from prominent moneylenders.

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