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

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 (3)

(1) and (2)

(2) and (3)

2 / 15

National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 as a/the_________body to coordinate the activities of all institutions involved in the rural financing system. (Fill in the blank with the correct alternative)

cooperative

micro credit

private credit

apex

3 / 15

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

It is very popular amongst farmers

It is labor intensive

Costlier inputs will fetch a high price for output

There is ample awareness among people about organic products

4 / 15

Which among the following can be cited as a limitation of micro-credit programmes?

It encourages the habit of thrift in rural people

Borrowings from such programmes are done for consumption purposes

It empowers the womenfolk in rural areas

None of these

5 / 15

Identify which of the following is a source of non-institutional credit in the rural areas of India.

Money Lenders

Commercial Banks

Regional Rural Banks

NABARD

6 / 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.

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.

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).

7 / 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 create a culture of savings and investment

to protect them from predatory lending and debt traps

to increase the earnings of the regional rural banks

8 / 15

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

Decrease in the casualization of employment

Lack of alternate employment opportunities

Adequate infrastructurev

Decline in public investment

9 / 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.

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

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

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).

10 / 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

Kudumbashree

NABARD

11 / 15

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

Diversification in the agriculture sector provides sustainable livelihood rural population.

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

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.

12 / 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.

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

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

A is false, but R is true.

A is true, but R is false.

13 / 15

Match the Government Initiative with its Purpose in Agricultural Marketing:

Column A	Column B Options
A. Minimum Support Price (MSP)	1. Ensures fair prices through farmer collectives
B. Buffer Stocks	2. Provides assured price for farm produce
C. Cooperative Marketing	3. Stabilizes food supply via FCI storage
D. Emerging Alternate Channels	4. Increases farmer income via direct sales

A – 1, B – 3, C – 2, D – 4

A – 2, B – 3, C – 1, D – 4

A – 2, B – 3, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

14 / 15

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

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

Gives meager income

Does not contribute to food security

Agriculture is monsoon dependent

15 / 15

Assertion (A): The agricultural marketing system in India faces challenges like faulty weighing and lack of storage.
Reason (R): Government initiatives like MSP and buffer stocks fully address these issues.

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.

Your score is

The average score is 56%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	aish	100 %	4 minutes 53 seconds	15
2	rohila	87 %	3 minutes 42 seconds	13
3	B.	80 %	4 minutes 2 seconds	12
4	abc	80 %	5 minutes 53 seconds	12
5	Abc	80 %	12 minutes 48 seconds	12
6	Q	67 %	4 minutes 19 seconds	10
7	Shreya	67 %	4 minutes 51 seconds	10
8	xyz	53 %	3 minutes 14 seconds	8
9	Crunchy	53 %	4 minutes 41 seconds	8
10	Eesha	47 %	4 minutes 21 seconds	7
11	Subham	47 %	8 minutes 39 seconds	7
12	Nisha	40 %	2 minutes 39 seconds	6
13	Ayushi	40 %	3 minutes 18 seconds	6
14	Meessiiii	40 %	7 minutes 23 seconds	6
15	tanisha	40 %	10 minutes 33 seconds	6
16	Keerti	33 %	6 minutes 6 seconds	5
17	Raj	7 %	2 minutes 52 seconds	1

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?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

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