12. Swapna, a small farmer, grows groundnut on her three acres of land. she takes a loan from the

money lender to meet the expenses of cultivation, hoping that her harvest would help repay the

loan. Midway through the season the crop is hit by pests and the crop fails. Though Swapna prays

her crops with expensive pesticides, it makes little difference. She grows over the year into a large

amount. Next year Swapna takes a fresh loan for cultivation. It is a normal crop this year . But the

earnings are not enough to cover the old loan. She is caught in debt. She has to sell a part of the

land to pay off the debt.

Answer the following MCQs choosing the most appropriate option.

12.1. The passage given above relates to which of the following options?

(a) Collateral credit (b) Credit recovery is very painful

(c) Failure of crops (d) Credit is somewhere beneficial​