Agricultural Finance One Liner

Agricultural Finance One Liner and answer key

Agricultural finance and cooperation

Answer key

Go to Agricultural Finance MCQ
Go to Agricultural Finance MCQ
Go to Agricultural Finance MCQ
Go to Agricultural Finance MCQ


Explanation 01-10

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.

Explanation 11-20

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.

Explanation 21-30

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.

Explanation 31-35

31: The principles of cooperation are as follows

  • Universality.
  • 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.