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

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 true.

Statement 2 is true and Statement 1 is false.

Statement 1 is true and Statement 2 is false.

Both statements are false.

2 / 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 – 3, B – 2, C – 1, D – 4

A – 1, B – 3, C – 2, D – 4

A – 2, B – 3, C – 4, D – 1

A – 2, B – 3, C – 1, D – 4

3 / 15

Why are farmers reluctant to adopt organic farming?

All

Lack of proper marketing strategies

Short shelf-life of products

Inputs are costly

4 / 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.

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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).

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

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

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

5 / 15

What is the direct benefit of India taking up organic farming?

It is labor intensive

Costlier inputs will fetch a high price for output

It is very popular amongst farmers

There is ample awareness among people about organic products

6 / 15

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

to increase the earnings of the regional rural banks

to promote collectivization and organization among them

to create a culture of savings and investment

to protect them from predatory lending and debt traps

7 / 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.

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).

8 / 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.

A is false, but R is true.

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.

9 / 15

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What aims can be achieved through establishing alternate marketing channels?

Decrease the profits of farmers

Reduce the markets for farm products

Assured procurement of agricultural products at pre-decided prices

Increase price risk

10 / 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

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.

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

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.

12 / 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

Jan-Dhan Yojana

NABARD

Kudumbashree

13 / 15

Assertion (A): Organic farming generates employment opportunities in rural areas.
Reason (R): It requires less labor input than conventional farming.

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.

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

14 / 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 – 4, B – 1, C – 3, D – 2

A – 2, B – 1, C – 3, D – 4

A – 1, B – 2, C – 3, D – 4

A – 3, B – 1, C – 2, D – 4

15 / 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)

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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)

Your score is

The average score is 57%

Leaderboard – Top Scorers

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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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