Question 6
Agricultural FinanceThe difference between subsidy and loan is that subsidy
- A.is a short term credit while loan is a long term credit
- B.is a medium term credit while loan is short term credit
- C.requires a collateral while a loan does not
- D.is not refundable while a loan is refundable
Show the answer and explanation
Answer: D (is not refundable while a loan is refundable)
Explanation
A subsidy is never paid back; a loan must be repaid.