MCQ on Rural Development Class 12 Economics is covered in this Article. Rural Development MCQs Test contains 62 questions. Answers to MCQ on Rural Development Class 12 Economics are available after clicking on the answer.
| Category | CBSE Economics Class 12 MCQs |
| Subject | Economics |
| Chapter | MCQ on Rural Development Class 12 |
MCQ on Rural Development Class 12 Multiple choice questions with Answers
Q1. The action plan for rural development focuses on: –
a) Lingering challenges
b) Emerging challenges
c) Both a and b
d) None of these
Answer
Answer: (c)Both a and b
Q2. Lingering Challenges include :
a) Challenge of rural credit
b) Challenge of rural marketing
c) Challenge of Unemployment
d) Both a and b
Answer
Answer: (d)Both a and b
Q3. Initiatives required for Rural development includes: –
a) Development of Human resource
b) Land Reforms
c) Infrastructure development
d) All of these
Answer
Answer: (d)All of these
Q4. Emerging Challenges of rural development includes:
a) Diversification of production activities
b) Organic farming
c) Both a and b
d) None of these
Answer
Answer: (c) Both a and b
Q5. Rural credit is required for farming because
a) Most farming families have small landholdings.
b) They produce only for self-consumption
c) They need funds for further investment in agriculture
d) All of these
Answer
Answer: (d)All of these
Q6. The duration of short-term credit is
a) 6 to 12 months
b) 2 to 5 years
c) 5 to 20 years
d) 12 months to 5 years
Answer
Answer: (a) 6 to 12 months
Q7. Which approach was adopted by India in 1969 to meet the needs of rural credit?
a) Social banking
b) Multi-agency
c) Both a and b
d) None of these
Answer
Answer:(c)Both a and b
Q8. Short term credit is required for
a) Construction offense
b) Purchasing inputs like seeds, fertilizers, etc
c) For purchasing land or tractor
d) None of these
Answer
Answer: (b) Purchasing inputs like seeds, fertilizers, etc.
Q9. The duration of medium-term credit is
a) 6 to 12 months
b) 2 to 5 years
c) 5 to 20 years
d) 12 months to 5 years
Answer
Answer: (d) 12 months to 5 years
Q10. Medium-term credit is required for
a) Construction of fence
b) Purchasing inputs like seeds, fertilizers, etc
c) For purchasing land or tractor
d) None of these
Answer
Answer: (a) Construction of fence
Rural Development Class 12 MCQ
Q11. Long term credit is required for
a) Construction of fence
b) Purchasing inputs like seeds, fertilizers, etc
c) For purchasing land or tractor
d) None of these
Answer
Answer: (c) For purchasing land or tractor
Q12. The duration of long-term credit is
a) 6 to 12 months
b) 2 to 5 years
c) 5 to 20 years
d) 12 months to 5 years
Answer
Answer: (b) 5 to 20 years
Q13.Non-institutional source of rural credit includes
a) Money lenders
b) Commercial banks
c) Regional Rural banks
d) None of these
Answer
Answer: (a)Moneylenders
Q14. Institutional source of rural credit includes
a) Money lenders
b) Landlords
c) Regional Rural banks
d) None of these
Answer
Answer: (c) Regional Rural banks
Q15.Cooperative Credit societies ensure:
a) Timely and rapid flow of credit to farmers
b) Guidance in diverse agricultural operations
c) Elimination of the money lenders
d) All of these
Answer
Answer: (d)All of these
Q16.The apex funding agency for providing rural credit is
a) Regional Rural Bank
b) NABARD
c) SBI
d) None of these
Answer
Answer: (b)NABARD
Q17.The main function of NABARD is
a) Serves as an apex funding agency
b) Coordinate the rural financing activities
c) Monitor and evaluate the refunded projects
d) All of these
Answer
Answer: (d)All of these
Q18.In SHGs the credit is offered
a) Without collateral
b) Moderate Rate of Interest
c) Both a and b
d) None of these
Answer
Answer: (c)Both a and b
Q19.Arrange the marketing process in order
(1) Grading the produce as per quality
(2) Gathering the produce after harvesting
(3) Processing the produce
(4) Packing the produce
(a) 1,2,3,4
(b) 2,3,1,4
(c)1,3,2,4
(d)3,1,2,4
Answer
Answer: (b) 2,3,1,4
Q20.The reason of Distress sale is
a) Farmers need cash immediately for paying debts
b) High Storage cost
c) Lack of Storage facilities
d) All of these
Answer
Answer: (d)All of these
MCQ on Rural Development Class 12
Q21. Rural development is an action plan to improve ____ aspects of life.
a) Some
b) All
c) Few
d) None of these
Answer
Answer: (b)All
Q22.Rural development is a ___ term.
a) comprehensive
b) Selective
c) Decretive
d) None of these
Answer
Answer: (a)Comprehensive
Q23. ____ is an important source of occupation for the women.
a) Fishing
b) Agriculture
c) Livestock Farming
d) Horticulture
Answer
Answer: (c) Livestock farming
Q24. Horticulture contributes___ of value of agricultural output and __ per cent GDP of India.
a) Two-third,5
b) One-third,6
c) One-fourth,8
d) None of these
Answer
Answer: (b)One-third, 6
Q25.Alternative marketing channels help the farmers in ___their market and ___ price- risk.
a) Expanding, reduce
b) Reducing , Expand ,
c) Expand, Expand
d) None of these
Answer
Answer: (a) Expanding , reduce
Q26.Widespread indebtedness of the fishing communities makes fishing a vulnerable occupation.
a) True
b) False
Answer
Answer: (a)True
Q27. _____ is an initiative taken up by the government to improve marketing system.
a) Intermediaries
b) Whole sale markets
c) Regulated Market
d) None of these
Answer
Answer: (c)Regulated Markets
Q28. ____ is an assurance to the farmers that their produce would be purchased by the government at the specified price.
a) MSP
b) MRP
c) Both a and b
d) None of these
Answer
Answer: (a)MSP
Q29. At the time of independence, agricultural marketing was almost under the complete control of ____.
a) Farmers
b) Moneylenders
c) Traders
d) Both B and C
Answer
Answer: (d) Both b and c
Q30.In distress sale , Farmers sell their produce at ___prices in the market.
a) High
b) Low
c) Undetermined
d) None of these
Answer
Answer: (b) Low
MCQ on Rural Development Class 12
Q31. _____ includes all these processes between harvesting and final sale of the produce by the farmers.
a) Agricultural Marketing
b) Rural Marketing
c) Rural Agriculture
d) All of these
Answer
Answer: (a)Agricultural Marketing
Q32. ______________ refers to a situation when the farmers are compelled to sell the produce just after harvest even in low prices.
a) Surplus sale
b) Distress sale
c) Commercial farming
d) None of these
Answer
Answer: (b)Distress sale
Q33.Collateral against loan led many _____ farmers left out from taking advantage of rural credit.
a) Large
b) Small
c) Marginal
d) Both b and c
Answer
Answer: (d) Both b and c
Q34.Out of total institutional credit, Commercial banks contributes about___per cent.
a) 60
b) 65
c) 70
d) 75
Answer
Answer: (d)75
Q35.NABARD was set up in___.
a) 1984
b) 1983
c) 1982
d) 1981
Answer
Answer: (c)1982
Q36.Nationalization of commercial bank happened in___.
a) 1966
b) 1969
c) 1968
d) 1967
Answer
Answer: (b)1969
Q37. _______ and __________ were set up to promote credit supplies in rural areas.
a) RRBs and Land Development Banks
b) SBI and NABARD
c) RBI and Commercial banks
d) None of these
Answer
Answer: (a)RRBs and Land Development
Q38. _____________ means giving small loans to individuals for establishing self-employment.
a) Macro credit
b) Micro credit
c) Both a and b
d) None of these
Answer
Answer: (b)Micro credit
Q39. RRBs were set up for urban areas.
a) True
b) False
Answer
Answer: (b)False
Q40.SHGs promoted the habit of savings among ___ households.
a) Rural
b) Urban
c) Foreign
d) None of these
Answer
Answer: (a)Rural
MCQ on Rural Development Class 12
41. ________ is a women-oriented community based poverty reduction program implemented in Kerala. (Fill in the blank with correct alternative)
a) Self help group
b) Kudumbashree
c) AGMARK
d) All of the above
Answer
Answer: B
42. ________ was an apex body to coordinate the activities of all financial institutions in the rural financial system. (Fill in the blank with the correct alternative)
a) NABARD
b) SHG
c) Agricultural marketing
d) All of the above
Answer
Answer: A
43. The ________ was a harbinger of major changes in the credit system. (Fill in the blank with correct alternative)
a) NABARD
b) Self help groups
c) Green revolution
d) Banking system
Answer
Answer: C
44._______ is a village based financial intermediary committee usually composed of 10-20 local women or men. (Fill in the blank with correct alternative)
a) Micro credit program
b) Self help group
c) NABARD
d) Banking system
Answer
Answer: B
45. ________ is an assurance to the farmers that their produce would be purchased by the government at pre-fixed price. (Fill in the blank with correct alternative)
a) CACP
b) MSP
c) NABARD
d) PDS
Answer
Answer: B
46. Under ——— farmers are free to sell their produce at the price fixed by government. (fill in the blank with correct alternative)
a) MSP
b) PDS
c) Buffer stock
d) All of the above
Answer
Answer: A
47. Read the following statement given below and choose the correct alternative
Statement 1- MSP is set to safeguard the interests of farmers.
Statement 2- PDS is for the rich section of the society
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: C
48. Read the following statement given below and choose the correct alternative
Statement 1- Intermediaries provide financial assistance to poor farmers
Statement 2- Government intervention in markets should be abolished
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: B
49. Read the following statement given below and choose the correct alternative
Statement 1- Diversification in agriculture is all about change in cropping pattern.
Statement 2- Animal husbandry,poultry, fisheries and horticulture are
diversification of agricultural
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: D
50. Read the following statement given below and choose the correct alternative
Statement 1- Diversification reduces burden on workforce on agriculture
Statement 2- Diversification fails to provide sustainable livelihood options
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: C
MCQ on Rural Development Class 12
51. Read the following statement given below and choose the correct alternative
Statement 1- TANWA project was initiated to train women in agricultural practices.
Statement 2- Dynamic sectors include agro- processing industries
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: A
52. Read the following statement given below and choose the correct alternative
Statement 1- Regulation of markets is important to improve agriculture market
Statement 2- Regulated markets promotes commercialisation of agricultural
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: A
53. Read the following statement given below and choose the correct alternative
Statement 1- The fishing community regards the water body as mother
Statement 2- Fish production accounts for 9% of the total GDP in India
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: C
54. Read the following statement given below and choose the correct alternative
Statement 1- IT sector fails to provide sustainable livelihood options
Statement 2- IT sector provides services dissemination of information
a) Both are correct
b) Both are incorrect
c) Statement 1 is correct and statement 2 is incorrect
d) Statement 1 is incorrect and statement 2 is correct
Answer
Answer: D
55. Choose the correctly matched pair from the following
| Column A | Column B |
| A. Apni mandi | 1. Pune |
| B. Hadaspar mandi | 2. Rajasthan |
| C. Uzhavar mandi | 3. Andhra Pradesh |
| D. Rythu mandi | 4. Tamil nadu |
a) A-4
b) B-1
c) C-2
d) D-3
Answer
Answer: B
56. Choose the correctly matched pair from the following
| Column A | Column B |
| A. Animal husbandry |
|
| B. Food processing | 2. IT sector |
| C. Use of animal manure | 3. Diversification of agricultural |
| D. Dissemination of information | 4. Dynamic sector |
a) A- 3
b) B- 4
c) C- 2
d) D-1
Answer
Answer: A
57. Read the following statement given below and choose the correct alternative
Assertion (A)- Farmers cannot reach nearby markets to sell their products at
fair prices
Reason (R )- There is lack of transportation in agricultural marketing
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: A
58. Read the following statement given below and choose the correct alternative
Assertion (A)- On an average, an Indian farmer gets just 60% of the price paid
by the final consumer
Reason (R )- The multiplicity of middlemen causes exploitation of farmers
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is not the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but Assertion is not
Answer
Answer: A
59. Read the following statement given below and choose the correct alternative
Assertion (A)- Livestock sector alone provides alternative livelihood options to
over 70 million farmers in India.
Reason ( R)- Livestock production provides increased income
a) Both assertion and reason are true. Reason is the correct explanation of assertion
b) Both assertion and reason are true. Reason is the correct explanation of assertion
c) Assertion is true but reason is not
d) Reason is true but assertion is not
Answer
Answer: B
60. Which of the following are the problems faced by agriculture marketing.( Choose the correct alternative)
a) Lack of storage facilities
b) Lack of adequate finance
c) Malpractices in unregulated markets
d) All of the above
Answer
Answer: D
MCQ on Rural Development Class 12
61. What are the measures to improve agriculture marketing?
a) Regulation of markets
b) Provision if infrastructure
c) Encouragement of cooperative marketing
d) All of the above
Answer
Answer: D
62. What are the policy instruments to improve agriculture marketing. ( Choose the correct alternative)
a) Public distribution system
b) Minimum support price
c) Both (a) and (b)
d) None of the above
Answer
Answer: C
CBSE Class 12 Economics Term 1 MCQ Based Questions
Part A: Introductory Macroeconomics
- Money and Banking Class 12 MCQs – 6 Marks
- Government Budget and the Economy – 6 Marks
- Balance of Payments Class 12 MCQs – 6 Marks
- Foreign Exchange Rate MCQs
Part B: Indian Economic Development
Development Experience (1947-90) and Economic Reforms since 1991:- 12 Marks
- Indian Economy on the eve of Independence MCQs
- Indian Economy (1950-90) MCQs
- Economic Reforms since 1991 MCQs
Current challenges facing Indian Economy – 10 Marks
- Poverty MCQs
- Human Capital Formation MCQs
- Rural development MCQs
Frequently Asked Questions on MCQ on Rural Development Class 12
1. Are these MCQ’s on Rural Development Class 12 Economics are based on 2021-22 CBSE Pattern ?
Yes . There are 62 MCQ’s on this Chapter in this blog.
2. Are you giving all the chapters of Economics Class 12 which are given in CBSE syllabus for 2021-22 ?
Yes, we have provide total of 400+ MCQ from all chapters.