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

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.

Jan-Dhan Yojana

Sansad Adarsh Gram Yojana

NABARD

Kudumbashree

2 / 15

Why are farmers reluctant to adopt organic farming?

Inputs are costly

Short shelf-life of products

All

Lack of proper marketing strategies

3 / 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 – 3, B – 1, C – 2, D – 4

A – 1, B – 2, C – 3, D – 4

4 / 15

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

Costlier inputs will fetch a high price for output

There is ample awareness among people about organic products

It is very popular amongst farmers

It is labor intensive

5 / 15

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

Steel industry

Leather industry

Pottery, crafts, and handlooms

Tourism

6 / 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.

7 / 15

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

Land reforms

All

Development of human resources

Infrastructural development

8 / 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).

9 / 15

What aims can be achieved through establishing alternate marketing channels?

Increase price risk

Decrease the profits of farmers

Assured procurement of agricultural products at pre-decided prices

Reduce the markets for farm products

10 / 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

(2) and (3)

(1) and (3)

(1) and (2)

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

11 / 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

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

Decline in public investment

Decrease in the casualization of employment

13 / 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 in the agriculture sector provides sustainable livelihood rural population.

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

14 / 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

apex

private credit

cooperative

15 / 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.

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.

Your score is

The average score is 63%

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	abc	80 %	5 minutes 53 seconds	12
4	Shreya	67 %	4 minutes 51 seconds	10
5	Crunchy	53 %	4 minutes 41 seconds	8
6	Nisha	40 %	2 minutes 39 seconds	6
7	Ayushi	40 %	3 minutes 18 seconds	6
8	Keerti	33 %	6 minutes 6 seconds	5

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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