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

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 – 2, B – 1, C – 3, D – 4

A – 1, B – 2, C – 3, D – 4

A – 4, B – 1, C – 3, D – 2

A – 3, B – 1, C – 2, D – 4

2 / 15

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

Does not contribute to food security

Agriculture is monsoon dependent

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

Gives meager income

3 / 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.

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.

4 / 15

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

to create a culture of savings and investment

to protect them from predatory lending and debt traps

to promote collectivization and organization among them

to increase the earnings of the regional rural banks

5 / 15

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

Also See: Comprehensive Guide: Class 12 Rural Development Q&A

Leather industry

Pottery, crafts, and handlooms

Tourism

Steel industry

6 / 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 – 2, B – 3, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

7 / 15

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

NABARD

Money Lenders

Commercial Banks

Regional Rural Banks

8 / 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 false.

Statement 2 is true and Statement 1 is false.

Statement 1 is true and Statement 2 is false.

Both statements are true.

9 / 15

Why are farmers reluctant to adopt organic farming?

Inputs are costly

Lack of proper marketing strategies

Short shelf-life of products

All

10 / 15

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

All

Development of human resources

Infrastructural development

Land reforms

11 / 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 the correct explanation of Assertion (A).

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

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

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

12 / 15

Also See: On the Face of It: Key Questions and Answers for Class 12 English

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

13 / 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.

14 / 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

15 / 15

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

None of these

Borrowings from such programmes are done for consumption purposes

It encourages the habit of thrift in rural people

It empowers the womenfolk in rural areas

Your score is

The average score is 63%

Leaderboard – Top Scorers

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Pos.	Name	Score	Duration	Points
1	masa	100 %	1 minutes 1 seconds	15
2	Garima	100 %	1 minutes 6 seconds	15
3	Prisha	100 %	1 minutes 37 seconds	15
4	aish	100 %	4 minutes 53 seconds	15
5	Prisha Shah	93 %	1 minutes 24 seconds	14
6	Riddhi	93 %	3 minutes 13 seconds	14
7	rohila	87 %	3 minutes 42 seconds	13
8	Anushka	80 %	45 seconds	12
9	Prisha Shah	80 %	1 minutes 44 seconds	12
10	ms	80 %	2 minutes 26 seconds	12
11	Garima	80 %	2 minutes 37 seconds	12
12	nandini	80 %	2 minutes 47 seconds	12
13	B.	80 %	4 minutes 2 seconds	12
14	abc	80 %	5 minutes 53 seconds	12
15	Prisha Shah	80 %	5 minutes 55 seconds	12
16	Kaju	80 %	6 minutes 40 seconds	12
17	palak khetan	80 %	11 minutes 53 seconds	12
18	Abc	80 %	12 minutes 48 seconds	12
19	sheena	73 %	2 minutes 31 seconds	11
20	yayyyyy	73 %	5 minutes 5 seconds	11
21	Q	67 %	4 minutes 19 seconds	10
22	Shreya	67 %	4 minutes 51 seconds	10
23	tina	67 %	7 minutes 34 seconds	10
24	ani	67 %	1 hours 26 minutes 53 seconds	10
25	MD MISBAUL	60 %	18 minutes 6 seconds	9
26	Anushka	53 %	1 minutes 24 seconds	8
27	xyz	53 %	3 minutes 14 seconds	8
28	Crunchy	53 %	4 minutes 41 seconds	8
29	Gigi	53 %	5 minutes 45 seconds	8
30	kv	53 %	7 minutes 4 seconds	8
31	Eesha	47 %	4 minutes 21 seconds	7
32	Simran	47 %	6 minutes 6 seconds	7
33	Subham	47 %	8 minutes 39 seconds	7
34	Nisha	40 %	2 minutes 39 seconds	6
35	Anushka	40 %	3 minutes 1 seconds	6
36	Ayushi	40 %	3 minutes 18 seconds	6
37	karishma	40 %	4 minutes 15 seconds	6
38	Deepali	40 %	4 minutes 45 seconds	6
39	Meessiiii	40 %	7 minutes 23 seconds	6
40	tanisha	40 %	10 minutes 33 seconds	6
41	Keerti	33 %	6 minutes 6 seconds	5
42	Gg	33 %	7 minutes 7 seconds	5
43	Priyamvada napit	27 %	4 minutes 57 seconds	4
44	Deepali	27 %	6 minutes 2 seconds	4
45	Raj	7 %	2 minutes 52 seconds	1

Also See: On the Face of It Class 12 MCQ Quiz – Test Your Knowledge!

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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