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Cooperatives

Which of the ...

Question

Which of the following can be used as collateral for a cooperative to obtain a loan from a bank?

A

Farmlands of the members

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B

Agricultural produce

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C

Deposits of the members

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D

Gold owned by the members

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Solution

The correct option is C Deposits of the members
In a cooperative society, each member pools in money periodically. The cooperative uses this pooled money as a collateral to obtain a loan. This loan is further lent to the members of the cooperative at a lower rate of interest.

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