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

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

cooperative

apex

2 / 15

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

All

Infrastructural development

Land reforms

Development of human resources

3 / 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.

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 not the correct explanation of Assertion (A).

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

4 / 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.

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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.

5 / 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).

6 / 15

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

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

Agriculture is monsoon dependent

Gives meager income

Does not contribute to food security

7 / 15

Why are farmers reluctant to adopt organic farming?

Inputs are costly

Short shelf-life of products

All

Lack of proper marketing strategies

8 / 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.

Animal husbandry

Horticulture

Fisheries

Poultry

9 / 15

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

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

None of these

10 / 15

Also See: Indian Economy on the Eve of Independence Class 12 Questions & Answers

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 increase the earnings of the regional rural banks

to create a culture of savings and investment

11 / 15

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

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.

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

Diversification in the agriculture sector provides sustainable livelihood rural population.

12 / 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

Decrease in the casualization of employment

Decline in public investment

13 / 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

14 / 15

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.

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

A is false, but R is true.

A is true, but R is false.

15 / 15

Also See: CBSE Class 12 English Sample Papers with Solutions – Free PDF Download

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 1 is true and Statement 2 is false.

Statement 2 is true and Statement 1 is false.

Both statements are false.

Both statements are true.

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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