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MCQ

Cooperative grain storage finance MCQ - Practice Questions with Answers

Solve 1 Cooperative grain storage finance questions for RAS/RPSC preparation.

Practice questions

Q1Assertion (A): Under the Decentralised Grain Storage Plan in the Cooperative Sector, the effective loan interest rate for participating PACS can fall to about 1%. Reason (R): Subject to prescribed conditions, the Food Corporation of India has been authorised to mandatorily hire eligible godowns built under the plan. Select the correct answer using the code given below.

A Both A and R are true, and R is the correct explanation of A
B Both A and R are true, but R is not the correct explanation of A
C A is true, but R is false
D A is false, but R is true
Explanation

Both A and R are true. The near-1% effective interest comes from NABARD special refinance combined with 3% AIF interest subsidy, not from mandatory FCI hiring of eligible godowns. FCI hiring improves project viability but does not explain the interest rate. Hence B.

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