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

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 – 3, B – 1, C – 2, D – 4

A – 2, B – 1, C – 3, D – 4

A – 1, B – 2, C – 3, D – 4

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

private credit

apex

micro credit

3 / 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.

NABARD

Sansad Adarsh Gram Yojana

Kudumbashree

Jan-Dhan Yojana

4 / 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.

Both statements are true.

Statement 1 is true and Statement 2 is false.

Statement 2 is true and Statement 1 is false.

Both statements are false.

5 / 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.

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.

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

6 / 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.

7 / 15

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

It is labor intensive

There is ample awareness among people about organic products

Costlier inputs will fetch a high price for output

It is very popular amongst farmers

8 / 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, but R is not the correct explanation of A.

A is false, but R is true.

A is true, but R is false.

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

9 / 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 – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 2, B – 3, C – 1, D – 4

A – 2, B – 3, C – 4, D – 1

10 / 15

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

to protect them from predatory lending and debt traps

to increase the earnings of the regional rural banks

to create a culture of savings and investment

to promote collectivization and organization among them

11 / 15

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

Infrastructural development

Development of human resources

Land reforms

All

12 / 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 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.

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

13 / 15

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

Adequate infrastructurev

Decline in public investment

Lack of alternate employment opportunities

Decrease in the casualization of employment

14 / 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.

15 / 15

Why are farmers reluctant to adopt organic farming?

All

Lack of proper marketing strategies

Short shelf-life of products

Inputs are costly

Your score is

The average score is 37%

Leaderboard – Top Scorers

Check the top scorers here!

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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