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

Pottery, crafts, and handlooms

Leather industry

Steel industry

Tourism

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)

micro credit

cooperative

private credit

apex

3 / 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 create a culture of savings and investment

to protect them from predatory lending and debt traps

to promote collectivization and organization among them

4 / 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.

Also See: Last-Minute Lifesaver! Class 12 English Sample Paper + Solutions 2023-24 PDF Download

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.

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

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

5 / 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)

(2) and (3)

(1) and (2)

(1) and (3)

6 / 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

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

Does not contribute to food security

7 / 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.

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.

8 / 15

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

Commercial Banks

Regional Rural Banks

NABARD

Money Lenders

9 / 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

NABARD

Jan-Dhan Yojana

10 / 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 – 4, D – 1

A – 1, B – 3, C – 2, D – 4

A – 2, B – 3, C – 1, D – 4

A – 3, B – 2, C – 1, D – 4

11 / 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, 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 true, but R is false.

12 / 15

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

It empowers the womenfolk in rural areas

None of these

Borrowings from such programmes are done for consumption purposes

It encourages the habit of thrift in rural people

13 / 15

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

It is labor intensive

It is very popular amongst farmers

Costlier inputs will fetch a high price for output

There is ample awareness among people about organic products

14 / 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.

15 / 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 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.

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

More Class 12 Economics MCQ Quizzes

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About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

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