Consider List - A and List - B. List - A has different types of rural…

Concept: Rural credit purposes are classified by the borrower’s economic role. A landless wage labourer’s irregular wage income typically drives borrowing for personal or household consumption (illness, off-season gaps); an active cultivator needs recurring working capital each season for inputs such as fertiliser, pesticide, and seed; and a larger landholder’s bigger capital base and collateral make them the more likely applicant for a large, enterprise-scale investment loan such as a government scheme financing agro-processing infrastructure.

Application: Applying this to List – A:

• Agricultural worker (a): a landless wage labourer with irregular, calendar-linked income — the borrowing purpose is health and off-season household consumption, item i.

• Middle farmer (c): cultivates a moderate landholding each season and needs recurring working capital — the borrowing purpose is fertiliser, pesticide, and seed, item ii.

• Large farmer (b): holds a larger landholding with a bigger capital and collateral base — the borrowing purpose is the larger, enterprise-scale investment, the government loan for an agro-processing plant, item iii.

Contrast: The other three combinations each break this role-to-purpose logic:

• a-i, b-ii, c-iii swaps the scale of investment against landholding size — it pairs the smaller-scale middle farmer with the larger agro-processing plant loan and the larger-collateral large farmer with the smaller seasonal input loan.

• a-ii, b-i, c-iii pairs the landless agricultural worker with the fertiliser/pesticide/seed input loan even though this worker has no standing crop of their own to finance, and pairs the large farmer, who holds capital reserves, with the consumption loan.

• a-iii, b-i, c-ii pairs the landless agricultural worker with the large, enterprise-scale agro-processing plant loan despite lacking the land and collateral such an investment requires, and again pairs the large farmer, who holds capital reserves, with the consumption loan.

Only a-i, b-iii, c-ii keeps every role consistent with its typical borrowing purpose: the agricultural worker with health/off-season consumption, the large farmer with the agro-processing plant loan, and the middle farmer with fertiliser/pesticide/seed inputs. This is also the officially published CBSE CTET July 2019 Paper II answer key for this item.