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

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

Gives meager income

Does not contribute to food security

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

Agriculture is monsoon dependent

2 / 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 – 3, B – 1, C – 2, D – 4

A – 1, B – 2, C – 3, D – 4

A – 4, B – 1, C – 3, D – 2

A – 2, B – 1, C – 3, D – 4

3 / 15

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

Diversification in the agriculture sector provides sustainable livelihood rural population.

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.

4 / 15

Also See: Indian Economy on the Eve of Independence Class 12 MCQ Quiz – Test Your Knowledge!

What aims can be achieved through establishing alternate marketing channels?

Assured procurement of agricultural products at pre-decided prices

Reduce the markets for farm products

Increase price risk

Decrease the profits of farmers

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.

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

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.

6 / 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

Decrease in the casualization of employment

Lack of alternate employment opportunities

7 / 15

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

There is ample awareness among people about organic products

Costlier inputs will fetch a high price for output

It is labor intensive

It is very popular amongst farmers

8 / 15

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

Development of human resources

Infrastructural development

All

Land reforms

9 / 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.

Also See: The Enemy Class 12 Important Questions & Answers

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 true.

Both statements are false.

10 / 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, 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.

11 / 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.

Horticulture

Fisheries

Poultry

Animal husbandry

12 / 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)

apex

private credit

micro credit

cooperative

13 / 15

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

Money Lenders

NABARD

Commercial Banks

Regional Rural Banks

14 / 15

Why are farmers reluctant to adopt organic farming?

Inputs are costly

Short shelf-life of products

Lack of proper marketing strategies

All

15 / 15

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

Also See: Indigo Class 12 Exam: Important Questions with Detailed Answers

to increase the earnings of the regional rural banks

to create a culture of savings and investment

to promote collectivization and organization among them

to protect them from predatory lending and debt traps

Your score is

The average score is 60%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Gkw	73 %	5 minutes 42 seconds	11
2	Mahadev	67 %	7 minutes 13 seconds	10
3	shrii	67 %	9 minutes 47 seconds	10
4	Mouli Gupta	60 %	5 minutes 57 seconds	9
5	Anchal	60 %	8 minutes 25 seconds	9
6	Anika	47 %	3 minutes 13 seconds	7
7	Tanuja	47 %	3 minutes 28 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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