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Single Answer MCQ
Q-00045454

What is considered a common risk for farmers taking loans for crop production?

1

Decrease in commodity prices

2

High interest rates

3

Overproduction of crops

4

Economic stability

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Sandeep Chaturvedi

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Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

A. Decrease in commodity prices

Solution:

The common risk for farmers is a decrease in commodity prices. If farmers cannot sell their crops at profitable rates, they may struggle to repay loans, leading to financial strain.

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