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      Question

      Crop loan is which type of

      loan?
      A self liquidating loans Correct Answer Incorrect Answer
      B partially liquidating loans Correct Answer Incorrect Answer
      C non liquidating loans Correct Answer Incorrect Answer
      D non self liquidating loan Correct Answer Incorrect Answer
      E Long term loan Correct Answer Incorrect Answer

      Solution

      A self-liquidating loan is a loan that is expected to generate enough returns to repay itself over time. Crop loans are considered self-liquidating because the revenue generated from the harvested crops is used to repay the loan.

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