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?

<p>To create the supporting infrastructure for adoption of new technology (A)</p> Signup and view all the answers

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

<p>Increased farm income levels (C)</p> Signup and view all the answers

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

<p>Raising funds for agriculture at the aggregate level (B)</p> Signup and view all the answers

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

<p>Dealing with financial resources related to individual farm units (C)</p> Signup and view all the answers

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

<p>To make complex financial realities more manageable (C)</p> Signup and view all the answers

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

<p>Financial management of individual farm business units (C)</p> Signup and view all the answers

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

<p>An economic study of borrowing funds by farmers and the organization of farm lending agencies (C)</p> Signup and view all the answers

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