ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -4 FCA’s mission is to ensure a safe, sound, and dependable source of credit and related services for agriculture and rural America. Under the Farm Credit Act, one of the Agency’s key responsibilities is the oversight of System funding activities.

Detailed explanation-2: -Rural Credit is Necessary for the Following Reasons – The credit can help farmers acquire seeds, tools, fertilizers, and more, which are essential parts of their trade. Another valid reason for availing of Rural Credit is to mitigate personal expenses, such as marriage, religious functions, death, and more.

Detailed explanation-3: -According to section 54 of the RBI act, it is required to set up a separate agricultural credit department. The department initiates different measures to development a healthy ruler credit structure and provided guidance to state government and cooperative credit structure.

Detailed explanation-4: -Roosevelt in 1933 placed all existing agricultural credit organizations under the supervision of a new agency, the Farm Credit Administration (FCA). FCA was independent until 1939, when it became part of the U.S. Department of Agriculture (USDA), but became an independent agency again under the Farm Credit Act of 1953.

Detailed explanation-5: -Non-Institutional sources include moneylenders, traders and commission agents, relatives and landlords, but. Institutional sources include co-operatives, commercial banks including the SBI Group, RBI and NABARD.