Rural Development Class 12 MCQ Quiz – Test Your Understanding!

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

What aims can be achieved through establishing alternate marketing channels?

Decrease the profits of farmers

Increase price risk

Assured procurement of agricultural products at pre-decided prices

Reduce the markets for farm products

2 / 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

3 / 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

Kudumbashree

NABARD

Jan-Dhan Yojana

4 / 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

5 / 15

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

Also See: Indian Economy 1950-1990: Class 12 Important Questions and Answers for Board Exams

Steel industry

Tourism

Pottery, crafts, and handlooms

Leather industry

6 / 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 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.

7 / 15

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

Decrease in the casualization of employment

Lack of alternate employment opportunities

Adequate infrastructurev

Decline in public investment

8 / 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

9 / 15

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

to promote collectivization and organization among them

to protect them from predatory lending and debt traps

to create a culture of savings and investment

to increase the earnings of the regional rural banks

10 / 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.

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).

11 / 15

Also See: The Last Lesson MCQs | Class 12 English Chapter 1 Quiz with Answers

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.

Animal husbandry

Horticulture

Poultry

Fisheries

12 / 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)

(1) and (2)

(2) and (3)

(1) and (3)

13 / 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 true, but R is false.

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.

14 / 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

15 / 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.

A is false, but R is true.

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

Your score is

The average score is 57%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	aish	100 %	4 minutes 53 seconds	15
2	rohila	87 %	3 minutes 42 seconds	13
3	Anushka	80 %	45 seconds	12
4	B.	80 %	4 minutes 2 seconds	12
5	abc	80 %	5 minutes 53 seconds	12
6	Abc	80 %	12 minutes 48 seconds	12
7	Q	67 %	4 minutes 19 seconds	10
8	Shreya	67 %	4 minutes 51 seconds	10
9	Anushka	53 %	1 minutes 24 seconds	8
10	xyz	53 %	3 minutes 14 seconds	8
11	Crunchy	53 %	4 minutes 41 seconds	8
12	Eesha	47 %	4 minutes 21 seconds	7
13	Subham	47 %	8 minutes 39 seconds	7
14	Nisha	40 %	2 minutes 39 seconds	6
15	Anushka	40 %	3 minutes 1 seconds	6
16	Ayushi	40 %	3 minutes 18 seconds	6
17	Meessiiii	40 %	7 minutes 23 seconds	6
18	tanisha	40 %	10 minutes 33 seconds	6
19	Keerti	33 %	6 minutes 6 seconds	5
20	Raj	7 %	2 minutes 52 seconds	1

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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About the Quiz

Why Take This Quiz?

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Key Topics Covered in the Quiz

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