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 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 – 1, B – 3, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

A – 2, B – 3, C – 4, D – 1

A – 2, B – 3, C – 1, D – 4

2 / 15

Why are farmers reluctant to adopt organic farming?

All

Short shelf-life of products

Lack of proper marketing strategies

Inputs are costly

3 / 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, 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.

4 / 15

Also See: CBSE Class 12 Previous Year Question Papers with Solutions PDF Download (All Subjects)

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

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.

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

5 / 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, 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.

A is true, but R is false.

6 / 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

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

Agriculture is monsoon dependent

Gives meager income

7 / 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) and (3)

(1) and (2)

(1), (2), and (3)

(2) and (3)

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)

micro credit

cooperative

private credit

apex

9 / 15

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

Leather industry

Tourism

Pottery, crafts, and handlooms

Steel industry

10 / 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

NABARD

Jan-Dhan Yojana

Kudumbashree

11 / 15

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

All

Development of human resources

Land reforms

Infrastructural development

12 / 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 – 3, B – 1, C – 2, D – 4

A – 1, B – 2, C – 3, D – 4

A – 4, B – 1, C – 3, D – 2

13 / 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

14 / 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

Decline in public investment

Decrease in the casualization of employment

15 / 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.

Your score is

The average score is 58%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Gkw	73 %	5 minutes 42 seconds	11
2	shrii	67 %	9 minutes 47 seconds	10
3	Anika	47 %	3 minutes 13 seconds	7
4	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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