Question 57
Agricultural FinanceThe major difference between loan and subsidy is that
- A.subsidy is repayable while loan is not
- B.both cannot be available to the farmer at the same time
- C.loan is provided by government only while subsidy is not
- D.subsidy is expensive to obtain but loan is not
- E.loan is repayable while subsidy is not.
Show the answer and explanation
Answer: E (loan is repayable while subsidy is not.)
Explanation
A loan must be repaid; a subsidy is a grant.