The Farmer’s Economics

A bank had just opened in a rural area. A farmer met the manager in his office and asked if he could get a loan.

“Why not? The bank is here for you!” said the courteous manager. “Good. What is the interest you demand?”

“For farmers, only five percent,” the manager replied.

“That is quite cheap! I will come back tomorrow,” said the farmer, taking leave of the manager. However, he returned only a minute later, asking with excitement, “Can I get the loan at two percent interest?”

The surprised manager asked, “But did you not say that five percent was quite cheap?”

“I did say that, but when I stepped out, I saw rain clouds spreading across the sky. There will be rain; there will be crops. I will have less need for your loan,” explained the farmer.