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Agricultural Finance Basics

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Questions and Answers

What is the primary focus of micro-finance in the context of agricultural finance?

Future use of funds in agricultural sector

Financial management of individual farm business (correct)

Total credit needs of the agricultural sector

Terms and conditions of credit availability

What is the outcome of combining newly developed potential seeds with purchased inputs like fertilizers and plant protection chemicals in appropriate proportions?

Reduced agricultural productivity

No change in agricultural productivity

Dependence on traditional farming practices

Higher productivity (correct)

What is the role of farm finance in reducing regional economic imbalances?

Discouraging rural to urban migration

Reducing regional economic imbalances (correct)

Increasing inter-farm asset and wealth variations

Enhancing farm income levels

What is the primary objective of agricultural finance in the context of Indian agriculture?

To create the supporting infrastructure for adoption of new technology Signup and view all the answers

What is the outcome of large-scale financial investment activities in agricultural finance?

Increased farm income levels Signup and view all the answers

What is the primary focus of agricultural finance at the macro level?

Raising funds for agriculture at the aggregate level Signup and view all the answers

According to Tandon and Dhoundiyal (1962), what is the focus of agricultural finance?

Dealing with financial resources related to individual farm units Signup and view all the answers

What is the main goal of agricultural finance in managing farm business?

To make complex financial realities more manageable Signup and view all the answers

What is the scope of agricultural finance at the micro level?

Financial management of individual farm business units Signup and view all the answers

What is the definition of agricultural finance according to Murray (1953)?

An economic study of borrowing funds by farmers and the organization of farm lending agencies Signup and view all the answers