Question

How do the medium and large farmers make their own savings and how do they utilize it? Explain.

CBSE Class IX Social Science SA (3 Marks)

Answer 1

The medium and large farmers have surplus production even after keeping a substantial part for their own family needs. They sell it in the market and have good earnings and save it in their bank accounts. They utilize their savings:

(i)     By lending to small farmers who are in need of a loan.

(ii)   As working capital for farming in the next season.

(iii) As fixed capital for buying tractors, etc.

Answer 2

Answer:

The medium and large farmers have surplus production even after keeping a substantial part for their own family needs. They sell it in the market and have good earnings and save it in their bank accounts. They utilize their savings: (i) By lending to small farmers who are in need of a loan