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Q.

The main purpose of credit in rural areas is


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a

Animal husbandry

b

Agriculture

c

Pottery

d

Setting up factories 

answer is B.

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Detailed Solution

The main purpose of credit in rural areas is agriculture.
In rural areas, the main reason for taking loans is for agriculture. The proportion of small and marginal farmers is more significant than the number of big farmers. To grow crops, they need support in the form of loans. This loan is used to buy seeds, pesticides, fertilizers, tractors, large machinery, and irrigation facilities. All of these factors contribute immensely to the increasing productivity and production of the land. Thus, small and marginal farmers need money at a low-interest rate to buy these production factors and increase their land's productivity, which will give them more income and revenue.
 
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