CBSE Class 11 Economics Rural Development MCQs

Question :  The institutional aource of credit whose area of operation is the one where banking facilities and cooperatives are absent and which operate at the district level is:
(A) Regional rural bank
(B) Commercial bank
(C) Self-help group
(D) NABARD

Answer :   A

Question :  Diversification in agriculture activities means finding alternate employment in
(A) Non-farm sectors
(B) Urban sectors
(C) Rural sectors
(D) None of these

Answer :   A

Question :  The sector providing alternate livelihood options to 70 million small and marginal farmers is:
(A) Livestock
(B) Agro-processing
(C) Apni Mandi
(D) Fisheries

Answer :   A

Question :  Production of a diverse variety of crops rather than one specialised crop is called:
(A) Diversification of production activity
(B) Diversification of crop production
(C) Diversification of employment
(D) All the above

Answer :   B

Question :  The farming which relies on naturally occurring ecological process and biodiversity:
(A) Organic farming
(B) Conventional agriculture
(C) (a) and (b)
(D) None of the above

Answer :   A

Question :  Which of the following is true about organic farming?
(A) Organically grown food is more healthier and tastier
(B) Yields in organic farming are lower than in chemical farming
(C) It adversely effects the fertility of the soil
(D) It is quite expensive method of farming

Answer :   A

Question :  Credit needs related to constructing fences and digging wells are fulfilled by:
(A) Short term credit
(B) Medium term credit
(C) Long term credit
(D) None of the above

Answer :   B

Question :  Credit taken for a period of 15 years is
(A) Short term credit
(B) Medium term credit
(C) Long term credit
(D) All of these

Answer :   C

Question : Organic farming uses
(A) Organic manure
(B) Bio-fertilisers
(C) Organic pesticides
(D) All of these

Answer :   D

Question :  Traditional sources of rural credit in India are :
(A) Money lenders
(B) Relatives and friends
(C) Traders
(D) All of these

Answer :   D

Question :  Non farm areas of employment :
(A) Animal husbandary
(B) Fisheries
(C) Horticulture
(D) All of these

Answer :   D

Question :  AMUL stands for :
(A) Anand Multiple Union Ltd.
(B) Agriculture and Milk Union Ltd.
(C) Anand Mil Union Ltd.
(D) Anand Manufacturing Union Ltd.

Answer :   C

Question :  The ‘Golden Revolution’ was a period of very high productivity in:
(A) Foodgrain production
(B) Horticulture
(C) Organic farming
(D) Piscicultre

Answer :   B

Question :  Which is related to microfinance:
(A) Self Help Group
(B) NABARD
(C) Both
(D) None

Answer :   C

Question :  Institutional sources of agricultural credit are :
(A) Land development banks
(B) NABARD
(C) Self-help group
(D) All of these

Answer :   D

Question :  NABARD is ____________ source of rural credit
(A) Institutional
(B) Non-institutional
(C) Cooperative society
(D) Regional

Answer :   A

Question :  Growth in rural marketing relates to
(A) Provision of physical infrastructure
(B) Regulation of markets
(C) Cooperative farming
(D) All of these

Answer :   D

Question :  Short term credit is needed for
(A) Period of 15 months
(B) Period 5 years
(C) Period of 15 years
(D) Period of 20 years

Answer :   A

Question : From the following which is not a non-institutional source of credit in India.
(A) Money lenders
(B) Traders
(C) Commission agents
(D) Commercial banks

Answer :   D

Question :  Father of ‘Green Revolution’ In India
(A) M.S. Swaminathan
(B) Norman Borlong
(C) Chidambaram Subramaniam
(D) None of the above

Answer :   A

Question :  Government has assured the farmers of some minimum income from the sale of their crop by introducing:
(A) Warehousing facilities
(B) Regulated markets
(C) Minimum support price policy
(D) Co-operative agriculture marketing societies

Answer :   C

Question :  SHG stands for :
(A) Self Human Group
(B) Sufficient Humidity Growth
(C) Self Help Group
(D) Self Human Growth

Answer :   A

Question :  Organic farming is needed because it
(A) Maintains and enhances the ecological balance
(B) is free from chemical based fertilizers
(C) Both (a) and (b)
(D) Neither (a) nor (b)

Answer :   C

Question :  National Bank of Agriculture and Rural Development was set up in ________ as an apex body to coordinate the activities of all institutions in the rural financing system.
(A) 1969
(B) 1982 
(C) 1949
(D) 1991  

Answer :   B

Fill in The Blanks

Question :  ___________ was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system.
Answer  :   The National Bank for Agriculture and Rural Development (NABARD)

Question :   There is a need to increase credit facilities through ___________ and __________ for fisherwomen to meet the working capital requirements for marketing.
Answer  :   cooperatives; SHG5

Question :   The SHGs promote thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small installments at reasonable interest rates. Such credit provisions are generally referred to as __________________.
Answer  :   micro-credit programmes

Question :   _____________ is a whole system of farming that restores, maintains and enhances the ecological balance.
Answer  :  organic farming

Question :   __________________is a system whereby all the farmers can pool their milk produced according to different grading (based on quality) and the same is processed and marketed to urban centres through cooperatives. In this system, the farmers are assured of a fair price and income from the supply of milk to urban markets.
Answer  :   Operation Flood

Question :   Rampant underemployment, low per capita earnings, absence of mobility of labour to other sectors and __________ and ____________community face today.
Answer  :   a high rate of illiteracy; indebtedness, Rampant unemployment

Question :   __________ and ___________ are major concerns which need to be addressed apart from an appropriate agriculture policy to promote organic farming.
Answer  :   Inadequate infrastructure; the problem of marketing the products

Question :   Those non-farm sectors which have the potential but seriously lack infrastructure and other support include ___________.
Answer  :   traditional home-based industries like pottery, crafts, handlooms etc.

Question :   __________ is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
Answer  :   Agricultural marketing

Question :   _____________ , in realising fair prices for farmers’ products, is one of the initiatives taken by the government.
Answer  :   Co-operative marketing

Question :   In recent years, awareness of the harmful effect of chemical based fertilisers and pesticides on our health is on a rise. Efforts in evolving technologies which are eco-friendly are essential for sustainable development and one such technology which is eco-friendly is __________________.
Answer  :   organic farming

Question :   As agriculture is already overcrowded, a major proportion of the increasing labour force needs to find alternative employment opportunities in other non-farm sectors. Non- farm economy has several segments in it; some possess dynamic linkages that permit healthy growth while others are in subsistence, low productivity propositions. The dynamic sub
sectors include ____________.
Answer  :   agro-processing industries, food processing industries, leather industry tourism, etc.

Question :   The yields from organic farming are more than modern agricultural farming. True/ False? Give reason.
Answer  :   Ei: The yields from organic farming are less than modern agricultural farming in the initial years.
 

CASE STUDY BASED QUESTIONS

CASE STUDY 1

In agriculture, due to long time gap between crop sowing and realisation of income, farmers are in strong need for credit. Farmers need money to meet initial investment on seeds. fertilisers, implements and other family expenses of marriage, death, religious ceremonies, etc. So, credit is one of the important factors, which contribute to agricultural production. An efficient and effective rural credit delivery system is crucial for raising agricultural productivity and incomes.

Question :  Which one of the following is not a non-institutional source of credit?
(a) Money lenders
(b) Co-operative Credit
(c) Trader and commission agents
(d) Land development bank
Answer  :  (b) Co-operative Credit

Question :  _________________(NABARD/ RBI) is the Apex Bank which coordinates the functioning of different financial institutions, working for expansion of rural credit.
Answer  :  NABARD

Question :  Regulated markets were organised to protect the farmers from the malpractices of consumers. (True/ False)
Answer  :  False

CASE STUDY 2

At the time of independence, money lenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap. A major change occurred after 1969 when India adopted social banking and multi agency approach to adequately meet the needs of rural credit.
The institutional structure of moral banking today consists of a set of multi-agency institutions, namely, commercial banks. regional rural banks. cooperatives and land development banks. They are expected to dispense adequate credit at cheaper rates. Recently, self-help groups have emerged to fill the gap in the formal credit system. The SHGs promoter shrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates. By May 2019, nearly 6 crore women in India have become member in 54 lakh women SHGs. About Rs 10-15.000 per SHG as a community investment support fund are provided as part of renovating fund to take up self-employment for income generation.

Question :  was set up in 1982 as an apex body to coordinate the activities of all institutions involved in the rural financing system. (RBI/NABARD)
Answer : NABARD

Question :  The was a harbinger of major changes in the credit system as it led to the diversification of the padfolio of rural credit towards production-oriented lending.
(a) Green Revolution
(b) Golden Revolution
(c) White revolution
(d) None of these.
Answer  : B

Question :  Recently, Self Help Groups have emerged to fill the gap in the formal credit system. Such credit provisions are generally referred to as
(a) Macro credit programmes
(b) Micro credit programmes
(c) Both ‘a’ and ‘b’
(d) None of these
Answer  : B

Question :  Which of the following part is not a part of the institutional structure of rural banking today?
(a)Commercial banks.
(b) Regional rural banks.
(c) Non- banking finance companies.
(d) Land development banks
Answer  : C