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

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

Animal husbandry

Horticulture

Fisheries

2 / 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.

Statement 2 is true and Statement 1 is false.

Statement 1 is true and Statement 2 is false.

Both statements are true.

Both statements are false.

3 / 15

What aims can be achieved through establishing alternate marketing channels?

Increase price risk

Decrease the profits of farmers

Reduce the markets for farm products

Assured procurement of agricultural products at pre-decided prices

4 / 15

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

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.

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).

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.

5 / 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

NABARD

Sansad Adarsh Gram Yojana

Jan-Dhan Yojana

6 / 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 (3)

(2) and (3)

(1) and (2)

7 / 15

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

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

Diversification in the agriculture sector provides sustainable livelihood rural population.

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

Diversification includes - a change in cropping pattern, a shift of workforce from agriculture to other allied activities, and the non-agriculture sector.

8 / 15

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

Regional Rural Banks

Commercial Banks

NABARD

Money Lenders

9 / 15

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

Agriculture is monsoon dependent

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

Gives meager income

Does not contribute to food security

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)

private credit

micro credit

apex

cooperative

11 / 15

Why are farmers reluctant to adopt organic farming?

Inputs are costly

Lack of proper marketing strategies

All

Short shelf-life of products

12 / 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 increase the earnings of the regional rural banks

to promote collectivization and organization among them

13 / 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.

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.

A is false, but R is true.

14 / 15

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

Tourism

Pottery, crafts, and handlooms

Leather industry

Steel industry

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 empowers the womenfolk in rural areas

It encourages the habit of thrift in rural people

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	Anchal	60 %	8 minutes 25 seconds	9
5	Anika	47 %	3 minutes 13 seconds	7
6	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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