Agricultural Finance One Liner and answer key
Agricultural finance and cooperation
01: We need agricultural finance due to capital intensive agricultural technologies.
02: The following credit agencies provide credit in rural areas:
- Organised credit agencies.
- Unorganised credit agencies.
03: Necessities of agricultural finance
- Farmers economic condition is subject to frequent onslaught of natural disasters such as drought, flood, heavy, etc.
- The scope for extensive agriculture in India is limited.
- Use of advanced technologies in agriculture.
- Regular need of raw materials.
04: Due to lack of knowledge, farmers are not aware of credit policies and procedures.
05: Subsistence farming is the base of the purchasing power of a small farmer.
06: Differences in profitability growing out of time alone, and differences in the desirability of investments due to risk and uncertainty factor are the aspect of the decision taken by a farm manager over varying horizons of time.
07: Time has a very significant influence both on cost and return.
08: Cash grow over time the compounding effect of interest and pportunity costs.
09: Fill the blank
The interest rate used to discount or compound sums of money should be at least as large as the current or market rate of interest.
10: The important variables determining present and future values of a single payment or series of payments are as follows
- The number of years.
- Size of interest rate.
11: Vredit is gaining control over the use of money at the present time in exchange for a promise to repay it at some future time.
12: Investment credit is necessary for the following reasons:
- Construction of farm structures.
- Installation of irrigation facilities.
- Purchase of farm machineries and implements.
13: Investment credit is also known as development credit.
14: The types of purpose credit are as follows
- Production credit.
- Marketing credit.
- Consumption credit.
15: The repayment period for medium term credit is 2-5 years.
16: The full form of PMFBY is Pradhan Mantri Fasal Bima Yojana.
17: Central government sponsors PMFBY.
18: PMFBY was launched on 18 February 2016.
19: Shri Narendra Modi launched PMFBY on 18 February 2016.
20: The crops covered under PMFBY are as follows
- Oil seeds.
- Food crops.
- Annual horticultural crops.
21: The full form of NIAS is National Agricultural Insurance Scheme.
22: The Comprehensive Crop Insurance Scheme introduced in India in 1985.
23: First Individual Approach Scheme: 1972-1978.
24: Private sectors introduced weather based crop insurance.
25: Department of horticulture will be the nodal agency for the insurance of vegetable crops.
26: RRB provides finance to small and marginal farmers.
27: Crop loan is a short term loan by RRB?
28: State Bank of India in collaboration with RRB.
29: RRB shareholders
- Government of India: 50%.
- Nationalised banks: 35%.
- State government: 15%.
30: The number of RRB as of 2020 is 43.
31: The principles of cooperation are as follows
- Political and religious neutrality.
- Voluntary association.
32: Robert Owen is father of cooperative movement.
33: The number of cooperative societies in 1946-47 was 172000.
34: The short term credit is three tier system.
35: The long term credit is two tier system.