Question

Grade 9 economics how do medium and large farmers make their own savings and how do they civilize it explain

Answer 1

Medium and large farmers have large areas of land, they grow surplus amount of a crop which is more than they require so they sell the excessive crop in the market and earn money these are their savings. They put most of their earnings or money in their bank account to get adequate interest on the same. A part of their earnings is saved and kept to arrange for the working capital in the next season. They also use savings for lending to small farmers and other persons in the village. A part of their earnings is also used to increase the fixed capital eg. tractor, thresher, cattle etc.

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