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Small farmers borrow for capital from large farmers, traders or:
AThe stock markets
BInsurance companies
CVillage moneylenders
DForeign banks abroad
Answer & Solution
Correct answer: C. Village moneylenders
1. Small farmers have no surplus to save.
2. They turn to local lenders.
3. Moneylenders charge very high interest.
_Source: NCERT Class 9 Economics, Chapter 1, The Story of Village Palampur._
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