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

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

to increase the earnings of the regional rural banks

to promote collectivization and organization among them

to protect them from predatory lending and debt traps

to create a culture of savings and investment

2 / 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

Adequate infrastructurev

Decline in public investment

Decrease in the casualization of employment

3 / 15

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

Steel industry

Pottery, crafts, and handlooms

Tourism

Leather industry

4 / 15

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

Development of human resources

Land reforms

Infrastructural development

All

5 / 15

Also See: Comparative Development Experiences of India and its Neighbors Class 12 MCQ Quiz – Test Your Understanding!

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.

A is false, but R is true.

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

6 / 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.

A is true, but R is false.

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

7 / 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

Agriculture is monsoon dependent

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

8 / 15

What aims can be achieved through establishing alternate marketing channels?

Increase price risk

Reduce the markets for farm products

Decrease the profits of farmers

Assured procurement of agricultural products at pre-decided prices

9 / 15

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

Commercial Banks

NABARD

Regional Rural Banks

Money Lenders

10 / 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)

micro credit

private credit

apex

cooperative

11 / 15

Also See: Say Goodbye to Guesswork: Master Class 12 English with Sample Paper PDF

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 – 3, B – 2, C – 1, D – 4

A – 2, B – 3, C – 4, D – 1

A – 2, B – 3, C – 1, D – 4

12 / 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.

Sansad Adarsh Gram Yojana

Jan-Dhan Yojana

NABARD

Kudumbashree

13 / 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.

Poultry

Horticulture

Animal husbandry

Fisheries

14 / 15

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

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

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.

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

15 / 15

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

Also See: A Roadside Stand Class 12 MCQ Quiz – Test Your Knowledge!

None of these

It encourages the habit of thrift in rural people

It empowers the womenfolk in rural areas

Borrowings from such programmes are done for consumption purposes

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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