People in rural areas demand credit for:

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Education

Crop Production

Business

Both (1) & (2)

answer is B.

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Detailed Solution

People in rural areas demand credit for crop production.
There is a demand for credit for several reasons. In the case of business, capital is required for business. Students require it for education. Likewise, in rural areas, there is a demand for credit for the production of a crop. As crop production requires huge costs of seeds, electricity and pesticides, farmers require loans to meet these expenses. There is also a period of a few months between buying of inputs and the selling of crops. For this reason, farmers take crop loans at the beginning of the seasons, and they repay them after harvest. This repayment is dependent on the income they receive from their produce.

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