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GS Paper IUPSC Prelims 2020
Agriculture & Rural Economy
Question No. 38Interactive Test Mode
00:00
+2-0.66

Q38. Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks. 3. Consumption requirements of farm households 4. Post-harvest expense 5. Construction of a family house and setting up a village cold storage facility. Select the correct answer using the code given below:

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

  1. Working capital for maintenance of farm assets
  2. Purchase of combine harvesters, tractors and mini trucks.
  3. Consumption requirements of farm households
  4. Post-harvest expense
  5. Construction of a family house and setting up a village cold storage facility. Select the correct answer using the code given below:
Select the correct option below (or cross out options to eliminate)
PrevNext Question

Official Answer Key & Detailed Solution

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Official UPSC Answer KeyUPSC Prelims 2020 • Indian Economy

Correct Answer: Option (B) — 1, 3 and 4 only

Concept & Option Breakdown

Standard Reference Verified

Under the revised Kisan Credit Card (KCC) scheme guidelines, short-term credit is extended for:

  • Meeting short-term crop loan requirements.
  • Post-harvest expenses (Statement 4).
  • Produce marketing loans.
  • Consumption requirements of farmer households (Statement 3).
  • Working capital for maintenance of farm assets and activities allied to agriculture (Statement 1).

Statements 2 and 5 are incorrect because purchase of heavy machinery (tractors, combine harvesters) and infrastructure construction (cold storage, family house) require long-term capital loans/schemes, not short-term working capital.

Elimination Heuristic & Exam Approach

Pay close attention to 'short-term credit' in the question stem. Purchasing tractors and building houses/cold storage are heavy, long-term capital investments, eliminating 2 and 5.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2020 (Q38)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Agriculture & Rural Economy
Official Answer KeyOption (B) — 1, 3 and 4 only

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Frequently Asked Questions — UPSC Prelims 2020 Q38

What is the official answer for UPSC Prelims 2020 GS Paper I Question 38 (Indian Economy)?

The official UPSC answer key for this 2020 Indian Economy (Agriculture & Rural Economy) question is Option (B): "1, 3 and 4 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2020 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Agriculture & Rural Economy". You can explore all repeated questions from Agriculture & Rural Economy in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Agriculture & Rural Economy UPSC Prelims question using option elimination?

Pay close attention to 'shortterm credit' in the question stem. Purchasing tractors and building houses/cold storage are heavy, longterm capital investments, eliminating 2 and 5.

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Previous QuestionIn India, which of the following can be considered as public investment in agriculture? 1. Fixing Minimum Support Price for agricultural produce of all crops. 2. Computerization of Primary Agricultural Credit Societies 3. Social Capital development 4. Free electricity supply to farmers 5. Waiver of agricultural loans by the banking system 6. Setting up cold storage facilities by the governments. Select the correct answer using the code given below.
Next QuestionConsider the following statements: 1. In the case of all cereals, pulses and oil-seeds, the procurement at Minimum Support Price (MSP) is unlimited in any State/UT of India. 2. In the case of cereals and pulses, the MSP is fixed in any State/UT at a level to which the market price will never rise. Which of the statements given above is/are correct?