WAEC Agricultural Science 1995 Question 57

Question 57

Agricultural Finance

The major difference between loan and subsidy is that

  1. A.subsidy is repayable while loan is not
  2. B.both cannot be available to the farmer at the same time
  3. C.loan is provided by government only while subsidy is not
  4. D.subsidy is expensive to obtain but loan is not
  5. 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.