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Question

Which of the following acts as the primary source of finance for small farmers in rural areas?

A
Public banks
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B
Moneylenders
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C
Private banks
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D
Financial institutions
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Solution

The correct option is B Moneylenders
Small farmers in rural areas do not have enough documents to get loan or credit from formal sources of finance. They approach friends, relatives, moneylenders, and other non-formal sources for their financial needs.

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