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A farmer has… (Class 10 Social Science SQP 2023-24, Q33A)

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Social ScienceCBSE Class 10 · Sample paper, session 2023-24 · 5 marks · Long answer

CBSE Class 10 Social Science sample paper 2023-24: question 33(A)

From the official CBSE sample question paper for 2023-24, section D, question 33(A), for 5 marks. Try it first; the hints and our step-by-step solution are below.

Q33(A) · 5 marks · Long answerCompetency-basedMoney and Credit

A farmer has borrowed money from a money lender at a high rate of interest, as he could not pay the interest, he was forced to borrow from another landlord to settle the amount for the interest borrowed to the money lender. State the consequences he may face in this situation.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Think about what happens when you borrow money only to pay the interest on an earlier loan.

Hint 2

Recall the features of informal sources of credit: interest rate, rules and documents.

Hint 3

Think about the economic, social and personal consequences for the farmer and his family.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. The farmer has fallen into a debt trap. He borrowed from the informal sector (moneylender), where the rate of interest is high, there is no proper documentation and no rules are followed. The lender's main motive is profit.

    1 mark

  2. Because he cannot pay the interest, he borrowed again from a landlord just to pay that interest. This starts a cycle of debt, since the second loan also carries a high interest rate.

    1 mark

  3. His debt keeps growing. He cannot make regular interest payments or repay the principal, and he may have to sell his land, cattle or other assets to clear the dues.

    1 mark

  4. He may face harassment, ill-treatment and threats from the lenders or their men, and may even suffer physical harm.

    1 mark

  5. He and his family may suffer severe mental stress, anxiety and depression, and their living standard falls. In the worst case this can push the farmer to extreme steps such as suicide.

    1 mark

Answer: The farmer is trapped in a debt trap: mounting debt, loss of assets, harassment by lenders, mental stress and a lower standard of living.

Where the marks are

  • Identifies the debt trap and the features of informal credit (high interest, no rules) (1 mark)
  • Borrowing again to pay interest creates a cycle of debt (1 mark)
  • Inability to repay; possible loss of land or assets (1 mark)
  • Harassment or physical harm from lenders (1 mark)
  • Mental stress and fall in living standard (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Money and Credit, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.