Bece Model Questions Vol1 2021 Edo L1 Question 18

Practice objective / multiple choice question 18 from the 2021 Bece Model Questions Vol1 Edo L1 examination.

Bece Model Questions Vol1 2021 Edo L1 Objective / Multiple Choice Medium Difficulty
Question 18 BECE_MODEL_QUESTIONS_VOL1 • 2021 • EDO_L1 • objective

Read the short story below and answer the question that follows. "Emeka harvested his tomatoes early in the season and sold them at the local market for ₦2,500 per basket. Mid‑year, a sudden rainstorm damaged many crops, and the market price of tomatoes fell to ₦1,200 per basket. To buy new seeds for the next planting, Emeka approached his neighbour, Chinedu, who offered a short‑term loan of ₦5,000 at a low interest rate. Emeka accepted the loan and used the money to purchase quality seeds." What is the main reason Emeka decided to accept Chinedu's loan?

Answer Options

A. Because he needed to repay an existing debt that was due soon
B. Because Chinedu offered a lower interest rate than a bank loan would have
Correct Answer C. Because the market price of his tomatoes fell, reducing his income and leaving him short of cash to buy new seeds
D. Because he wanted to expand his farm and needed extra capital for additional land
Correct Answer
C
Correct Option:
Because the market price of his tomatoes fell, reducing his income and leaving him short of cash to buy new seeds

About This Question

This is Bece Model Questions Vol1 2021 Edo L1 Question 18. It is one of the objective questions from the 2021 Bece Model Questions Vol1 Edo L1 examination.

Difficulty level: Medium .

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