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Q.

Under which circumstances poor farmers find themselves unable to pay back their loans?


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a

They earn their revenue from selling their crops.

b

At certain times due to climatic conditions and unavailability of resources, the crops may fail and the farmers won't get sufficient revenue to repay what they borrowed.

c

Both 1 and 2

d

None of the above 

answer is C.

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Detailed Solution

Both 1 & 2 statements are true.
In a number of situations, farmers are compelled to borrow money from loan companies for their own use. Selling their crops is how they make money. Crops may fail at particular times owing to climatic factors and a lack of resources, which will prevent farmers from earning enough money to pay back their loans.
 
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