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Q.

In Palampur village, Some farmers use their earnings to provide :


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a

Loans to small farmers at a high rate of interest

b

By loans

c

By selling their assets

d

All of the above 

answer is A.

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Detailed Solution

In Palampur village, Some farmers use their earnings to provide loans to small farmers at a high-interest rate.
This will further increase their earnings. The situation is completely different for small farmers. They start their working season with no or less capital. They are required to take loans from large farmers at a high-interest rate. Due to the small size of their farms, their production is also small. They use their produce in households and to repay their loans. So, they don't have any surplus to sell in the market. Thus, no savings for another time.
 
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