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If a farmer takes a loan to buy a tractor, under which category does it fall by tenure?

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Question

If a farmer takes a loan to buy a tractor, under which category does it fall by tenure?

Options

  • Productive Credit

  • Long-Term Credit

  • Medium-Term Credit

  • Unproductive Credit

MCQ
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Solution

Long-Term Credit

Explanation:

Buying a tractor requires a long-term loan, which is for more than 5 years.

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