Rural Development Class 12 MCQ Quiz – Test Your Understanding!

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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

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.

Kudumbashree

Sansad Adarsh Gram Yojana

Jan-Dhan Yojana

NABARD

2 / 15

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

Agriculture is monsoon dependent

Gives meager income

Does not contribute to food security

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

3 / 15

What aims can be achieved through establishing alternate marketing channels?

Increase price risk

Decrease the profits of farmers

Assured procurement of agricultural products at pre-decided prices

Reduce the markets for farm products

4 / 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 false, but R is true.

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 true, but R is false.

5 / 15

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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 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).

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 – 1, B – 2, C – 3, D – 4

A – 2, B – 1, C – 3, D – 4

A – 4, B – 1, C – 3, D – 2

A – 3, B – 1, C – 2, D – 4

7 / 15

Study the following picture and answer the given question:

rural development class 12 important questions answers

Women in rural households take up bee-keeping as an entrepreneurial activity. Such kind of activities may be envisaged under _____ as diversification activities.

Fisheries

Animal husbandry

Horticulture

Poultry

8 / 15

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

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Decrease in the casualization of employment

Lack of alternate employment opportunities

Decline in public investment

Adequate infrastructurev

9 / 15

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

A is true, but R is false.

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

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

A is false, but R is true.

10 / 15

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

Regional Rural Banks

Commercial Banks

Money Lenders

NABARD

11 / 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 – 2, B – 3, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 2, B – 3, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

12 / 15

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

Borrowings from such programmes are done for consumption purposes

None of these

It encourages the habit of thrift in rural people

It empowers the womenfolk in rural areas

13 / 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)

private credit

cooperative

micro credit

apex

14 / 15

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

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to increase the earnings of the regional rural banks

to protect them from predatory lending and debt traps

to promote collectivization and organization among them

to create a culture of savings and investment

15 / 15

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

Development of human resources

Infrastructural development

All

Land reforms

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The average score is 57%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	shrii	67 %	9 minutes 47 seconds	10
2	Anika	47 %	3 minutes 13 seconds	7

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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