2020 GS Paper I, all questions

UPSC Prelims 2020 · GS Paper I

Question 66: Economy and Social Development

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

  1. 1.Working capital for maintenance of farm assets
  2. 2.Purchase of combine harvesters, tractors and mini trucks
  3. 3.Consumption requirements of farm households
  4. 4.Post-harvest expenses
  5. 5.Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below :

a1, 2 and 5 only
b1, 3 and 4 only
c2, 3, 4 and 5 only
d1, 2, 3, 4 and 5

AnswerUPSC’s answer is (b).

Kisan Credit Card short-term credit covers cultivation expenses, post-harvest expenses, produce marketing loans, working capital for maintenance of farm assets and allied activities, and the consumption needs of the farm household. Buying combine harvesters, tractors or mini trucks, and building a house or village cold storage, are long-term investment needs outside short-term credit.

  • 1. Working capital for maintenance of farm assets is covered.
  • 2. Buying machinery is a long-term investment, not short-term credit.
  • 3. Consumption needs of the farm household are covered.
  • 4. Post-harvest expenses are covered.
  • 5. House construction and cold storage are long-term investments.

How you could have got this

  1. If you were sure statement 2 is not correct, (a), (c) and (d) go: each of them includes 2.

    What you needed to know: Buying machinery is a long-term investment, not short-term credit.

Only (b) is left. You didn’t need statements 1, 3, 4 or 5.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Wrong: machinery and construction are not short-term needs.
  • (b) Right: working capital, consumption and post-harvest expenses.
  • (c) Wrong: machinery and construction are not covered by short-term credit.
  • (d) Wrong: includes items 2 and 5, which are long-term investments.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2020, General Studies Paper I, Series A. The paper on upsc.gov.in.