Question : Statement 1: Institutional sources of credit provide farmers with flexible repayment options.
Statement 2: Institutional sources of credit offer longer loan tenure compared to informal sources.
Option 1: Both statement 1 and statement 2 are true.
Option 2: Both statement 1 and statement 2 are false.
Option 3: Statement 1 is true, but statement 2 is false.
Option 4: Statement 1 is false, but statement 2 is true.
Correct Answer:
Both statement 1 and statement 2 are true.
Solution : The correct answer is (a) Both statement 1 and statement 2 are true.
Institutional sources of credit can provide farmers with flexible repayment options, allowing them to choose repayment terms that suit their financial situation. Additionally, these sources often offer longer loan tenures compared to informal sources, providing farmers with more time to repay their loans.
