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For non-farm activities to expand, loans should be available at a:
AHigh rate of interest
BFixed monthly price
CForeign bank only
DLow rate of interest
Answer & Solution
Correct answer: D. Low rate of interest
1. People without savings need to borrow to start.
2. Costly loans would stop them.
3. So low interest loans are important.
_Source: NCERT Class 9 Economics, Chapter 1, The Story of Village Palampur._
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