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Social Science — CBSE Class 10 board question

Q1. [1]
Rama is a farmer. She needs loan for agriculture work. Which of the following sources of loan will be beneficial for Rama ? Choose the most appropriate option : I. Bank II. Agricultural Trader III. Self-Help Group IV. Government
  1. A Only I, III and IV are correct.
  2. B Only I, II and III are correct.
  3. C Only II, III and IV are correct.
  4. D Only I, II and IV are correct.
Previously asked in CBSE board exam
2025 32/6/1 Q1
Generated by claude-sonnet-4-6 · 2026-06-15 06:55 · grounding rag
Model Answer

Answer: A — Only I, III and IV are correct.

Banks, Self-Help Groups, and Government are formal/beneficial sources offering loans at low interest rates. Agricultural traders charge high interest (3% per month) and impose unfair conditions like forced crop sale, which is not beneficial for Rama.

Source: Money and Credit, Chapter 3

Explanation

The passage shows that Shyamal borrowed from an agricultural trader at 3% per month (36% p.a.) with the additional unfair condition of selling the crop to the trader at low prices — making it a harmful informal source. Banks offer as low as 8.5% p.a., SHGs provide loans at reasonable rates, and Government schemes support farmers. So the trader (Option II) is NOT beneficial, eliminating options B, C, and D.

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