Exploitation of Farmers Before Independence
At the time of independence, who exploited small and marginal farmers by lending at high interest rates?
- Government banks
- Moneylenders and traders — Correct Answer
- Cooperative societies
- Foreign banks
Explanation:
Correct Answer Explanation
At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating accounts to keep them in a debt-trap.
Key Points:
- Farmers were trapped in a debt-trap through account manipulation.
- This exploitation targeted small and marginal farmers and landless labourers.
- After 1969, social banking was adopted to address this problem.
Why Other Options Are Wrong
- A: Government banks were not the exploiters.
- C: Cooperative societies were formed to help farmers, not exploit them.
- D: Foreign banks were not primarily involved in rural lending.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
