Rural Development Class 12 MCQ Quiz – Test Your Understanding!

Are you ready to test your knowledge of Rural Development from the Class 12 Economics syllabus? This chapter focuses on agricultural growth, rural credit, employment, and poverty alleviation programs, which are essential for economic development in India. Understanding these topics is crucial for CBSE board exams and competitive exams.

About the Quiz

Chapter Name: Rural Development
Subject: Economics
Book: NCERT Class 12 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of rural credit, employment, and poverty reduction
✔ Enhances knowledge of government policies for rural development
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 5 Rural Development

1 / 15

Read the following statements -Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch.

Reason(R): Due to lack of proper storage facilities a lot of farm produce is wasted.

Assertion (A) is true but Reason (R) is false.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Assertion (A) is false but Reason (R) is true.

2 / 15

Assertion (A): Organic farming generates employment opportunities in rural areas.
Reason (R): It requires less labor input than conventional farming.

Both A and R are true, and R is the correct explanation of A.

A is true, but R is false.

Both A and R are true, but R is not the correct explanation of A.

A is false, but R is true.

3 / 15

Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – The emergence of Self-Help Groups (SHGs) ensured the reduction in the fissures of the formal credit system.

Statement 2 – The borrowings from SHGs are mainly confined to consumption purposes by its members.

Statement 1 is true and Statement 2 is false.

Statement 2 is true and Statement 1 is false.

Both statements are false.

Both statements are true.

4 / 15

Which one of the following states the best reason for India following a mixed crop-livestock farming system?

Does not contribute to food security

Agriculture is monsoon dependent

Gives meager income

Provides nutrition to the family without disturbing other food-producing activities

5 / 15

Which of the following sectors have the potential of growth but lack infrastructural support in rural areas?

Leather industry

Steel industry

Pottery, crafts, and handlooms

Tourism

6 / 15

Match the Rural Credit Source/Program with its Feature:

Column A	Column B Options
A. NABARD	1. Provides credit without collateral to women
B. Self-Help Groups (SHGs)	2. Coordinates rural financing institutions
C. Informal Sources	3. Includes moneylenders and traders
D. Jan Dhan Yojana	4. Offers bank accounts with overdraft facilities

A – 4, B – 1, C – 3, D – 2

A – 1, B – 2, C – 3, D – 4

A – 2, B – 1, C – 3, D – 4

A – 3, B – 1, C – 2, D – 4

7 / 15

Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:

Assertion (A): The major policy initiatives i.e. land reforms and the green revolution helped India to become self-sufficient in food grains production.

Reason (R): The proportion of people depending on agriculture did not decline as expected.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is false but Reason (R) is true.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is false.

8 / 15

Which of the following is the priority in terms of rural development?

All

Land reforms

Infrastructural development

Development of human resources

9 / 15

Assertion (A): Self-Help Groups (SHGs) empower rural women financially.
Reason (R): SHGs provide access to credit without collateral and foster income-generating opportunities.

A is false, but R is true.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

Both A and R are true, and R is the correct explanation of A.

10 / 15

Micro-credit programmes play a vital role in ensuring the overall development of the rural economy as they____________. (Choose the correct alternative to fill up the blank)

provide financial support

lead to women's empowerment

enhance the reach of the formal credit system

(1), (2), and (3)

(1) and (2)

(2) and (3)

(1) and (3)

11 / 15

What is the direct benefit of India taking up organic farming?

There is ample awareness among people about organic products

It is labor intensive

It is very popular amongst farmers

Costlier inputs will fetch a high price for output

12 / 15

Identify the incorrect statement from the following: (Choose the correct alternative)

Diversification includes - a change in cropping pattern, a shift of workforce from agriculture to other allied activities, and the non-agriculture sector.

Objective of investment in new agricultural avenues (non-farm activities) increases financial risks for the rural population.

Diversification reduces the proportion of the unemployed population in rural areas to considerable limits.

Diversification in the agriculture sector provides sustainable livelihood rural population.

13 / 15

Which among the following is the major reason for the dismal performance of the agricultural sector even after the reforms?

Lack of alternate employment opportunities

Decline in public investment

Adequate infrastructurev

Decrease in the casualization of employment

14 / 15

Kavitha, a farmer in rural India, is a recipient of a government scheme named __________. This scheme helps her set up a bank account and provides insurance, overdraft, and other social security benefits.

Jan-Dhan Yojana

Sansad Adarsh Gram Yojana

NABARD

Kudumbashree

15 / 15

Why is it important to ensure access to cheap formal sector credit for the rural poor?

to promote collectivization and organization among them

to increase the earnings of the regional rural banks

to create a culture of savings and investment

to protect them from predatory lending and debt traps

Your score is

The average score is 37%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	Ayushi	40 %	3 minutes 18 seconds	6
2	Keerti	33 %	6 minutes 6 seconds	5

Key Topics Covered in the Quiz

✔ Meaning & Importance of Rural Development
✔ Sources of Rural Credit – Institutional & Non-Institutional
✔ Role of NABARD (National Bank for Agriculture and Rural Development)
✔ Rural Employment & Self-Employment Programs (MGNREGA, PMRY)
✔ Agricultural Market System & Rural Infrastructure
✔ Government Schemes for Poverty Alleviation

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About the Quiz

Why Take This Quiz?

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Key Topics Covered in the Quiz

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