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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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