Question

Explain with an example How the terms
of credit can be unfavourable for the
Small farmers ?​

Answer 1

Explanation:

An example of unfavourable terms of credit for the small farmer is Shiva is a small farmer. He borrows money at the rate of 4 % per month (i.e., 48 % per annum) from a local moneylender to qrow his crop. But the crop fails due to severe drought. As a result Shiva has to sell a part of his land to repay the loan.

Answer 2

Answer:

An illustration of troublesome terms of credit for the little rancher is Shiva is a little rancher. He acquires cash at the pace of 4 % every month (i.e., 48 % per annum) from a neighborhood moneylender to grow his harvest. In any case, the yield flops because of a serious dry spell. Therefore Shiva needs to offer a piece of his territory to reimburse the advance.

Explanation: