CHAPTER-6-RURAL DEVELOPMENT

MULTIPLE CHOICE QUESTIONS

RURAL DEVELOPMENT MCQs

1 Name the great leader of India who once said” The real growth and expansion of Industrial
urban centers but mainly the development of the Villages”.
a.PanditJawahrarlal Nehru
b. Mahatma Gandhi
c. Sardar Vallabh Bhai Patel
d. None of these
2 The growth rate of agriculture sector decelerated to about------- percent per annum during the
1991- 2012.
a.2 b. 4
c. 3 d. 4
3 . The-----was a harbinger of major changes in the credit system as it leads to the diversification
of the portfolio of rural credit towards production oriented lending.
a. Golden Revolution b. Green Revolution
c. White Revolution d. None of these.
4 Which source of credit had emerged to fully integrate the formal credit system into the overall
rural social and community development?
(a) Self-help Groups
(b)Regional Rural Banks
(c) Commercial Banks
(d) Land Development Banks
5 Which one is not the Non Institutional source of Credit?
a. Moneylenders
b. Relatives
c. landlord
d. Commercial Banks
6 . Agriculture Marketing does not comprise of ------
a. Assembling
b. Processing
c. Credit Facilities
d. Transportation
7 i) Golden Revolution (a) 1982
(ii) Green Revolution ( b) 1966
(iii) First Nationalization of
Commercial banks in India ( c) 1991
(iv) NABARD (d) 1969
Choose the write options
a. (i) a, (ii) b, (iii) c, (iv) d
b,. (i) c, (ii) b, (iii) a , (iv) d
c. (i) c ,(ii) b, (iii) d. (iv) a
d. (i) b, (ii) c, (iii) d, (iv) a

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8 Select the correct combinations of alternative marketing channels and their states:
(i) Apni Mandi - Pune
(ii) Uzhavar sandies- Tamil Nadu
( iii) Raythu Bazar- Andhra Pradesh
(iv) Big Bazar- Bihar
a. i& ii
b. ii & iii
c. iii & I
d. I & iv
9 Which among the following is a process that involves the assembling, storage, processing.
Transportation, packaging, grading, and distribution of different agricultural commodities
across the country?
(a) Agricultural Management
(b) Agricultural Banking
(c) Agricultural Diversification.
(d) Agricultural Marketing
10 Which of the following option is not correct about Saansad Adarsh Gram Yojana (SAGY) :
a. SAGY was introduced in October , 2014
b. In this scheme every MP have to take two village from their constituencies by 2016
c. According to the scheme, the village can have a population of 3000 – 5000 in the plains and
1000- 3000 in the hills.
d. Village should not be MP’S own or their spouse‘s village.
11 . Select the correct statement:
a. Diversification of agriculture is essential to provide sustainable livelihood options to rural
people.
b. Primary co- operive societies operate at district level
c. During the period 1991- 2003 investment in horticulture has proved to highly productive and
it has been termed as Green Revolution.
d. 7 major commercial banks were nationalized in 1969.
12 . Which statement is not true about Kudumbashree?
a. It is a women oriented community based poverty reduction programme.
b. It is implemented in Tamil Nadu
c. It was started in 1995 as a thrift and credit society.
d. These society have been acclaimed as the largest informal banks in Asia in terms of
particiapation and saving mobilized.
13 Arrange the following events in chronological order and choose the correct alternative.
i. Establishment of NABARD
ii. Setting up central warehousing corporation
iii. Establishment of Regional Rural Bank
iv. NAFED
Choose the correct alternative
a. (iii) , (iv), (iii) ,(i)
b. (i) , (iii), (ii) ,(iv)
c. (ii) , (iv), (iii) ,(i)
d. (iv) , (i), (iii) ,(ii)

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14 . Multi agency approach does not consist.
a. Co-operative
b. Commercial Banks
c. Central banks
d. Regional Rural Banks
15 A project initiated in Tamil Nadu where rural woman find employment in non- farm jobs , as
well as they are trained in latest agricultural technique is called
a. TABOL
b. TADN
c. TANWA
d. None of these

16 The National Bank for Agriculture and Rural Development (NABARD) was set up in which
year?
(A) June, 1979
(B) July, 1980
(C) June, 1981
(D) July, 1982
17 Which statement from the following is not true about- "Kudumbashree’ a women-oriented
community-based poverty reduction programme"?
(A) A programme implemented in the state of Tamil Nadu
(B) Started in 1995, a thrift and credit society as a small savings bank for poor women
(C) The objective of this programme was to encourage savings
(D) This society mobilised Rs 1 crore as thrift savings
(E) These societies have been acclaimed as the largest informal banks of Asia
18 TANWA is a project initiated in which state?
(A) Kerala
(B) Tamil Nadu
(C) Maharashtra
(D) Punjab
19 'Operation Flood' is associated with...................
(A) Providing relief to the flood affected people
(B) Agricultural misery
(C) Milk production
(D) Industrialization of village areas
(E) All of these
20 Which state is held as a success story in the efficient implementation of milk cooperatives in
India?
(A) Maharashtra
(B) Tamil Nadu
(C) Odisha
(D) Gujrat
(E) Haryana

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21 In the year................... the Government of India introduced a new scheme called Saansad
Adarsh Gram Yojana (SAGY).
(A) 2012
(B) 2013
(C) 2014
(D) 2016
(E) None of these
22 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.
(A) cooperative
(B) apex
(C) micro credit
(D) private credit
23 Identify the incorrect statement from the following: (Choose the correct alternative)
(A) Diversification in agriculture sector provides sustainable livelihood to rural population.
(B) Diversification includes - change in cropping pattern, shift of workforce from agriculture to
other allied activities and non-agriculture sector.
(C) Objective of investment in new agricultural avenues (non-farm activities) increases financial
risks for the rural population.
(D) Diversification reduces the proportion of unemployed population in the rural areas to
considerable limits.
24 Which institute does not provide direct loan to the farmers?
(A) Commercial Bank
(B) NABARD
(C) Regional Rural Bank
(D) All of these
25 What is the name of the vegetable and fruit market in Andhra Pradesh?
(A) Apni Mandi
(B) Hadaspar Mandi
(C) Rythu Bazars
(D) Uzhavar Sandies
26 14 major commercial banks were Nationalized in______
(A) 1969
(B) 1980
(C) 1975
(D) 1991
27 What is not true about Self Help Groups (SHGs) from the followings?
(A) It has emerged as an institution to fill the gap in the formal credit system
(B) It promotes thrift in small proportions by a minimum contribution from each member
(C) It gives credit to the needy members to be repayable in small instalments at reasonable
interest rates
(D) 54 lakh women SHGs have nearly 6 crore women members as on May, 2019
(E) None of these

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28 'Apni Mandi' a local agricultural market found in ...........
(A) Punjab, Haryana and Rajasthan
(B) Pune (Maharashtra)
(C) Andhra Pradesh and Telangana
(D) Tamil Nadu
(E) All of these
29 India has been growing variety of crops such as fruits, vegetables, flowers, spices, medicinal
and aromatic plants. This is related to .....................
(A) Sericulture
(B) Viticulture
(C) Horticulture
(D) DD Culture
(E) None of these
30 Which of the following is an institutional source of rural credit?
(A) Moneylenders
(B) Regional Rural Banks
(C) Traders
(D) Landlords

31 An instrument used by government to stabilise prices

A. SSP
B. SHP
C. Buffer Stock
D. MSP
32 TANWA stands for
A. Tamil Nadu Women in Agriculture
B. Tripura Women in agriculture
C. Tripura Women in industry
D. Tamil Nadu men in agriculture
33 The period between 1991-2003 is called
A. Green Revolution
B. Blue Revolution
C. Golden Revolution
D. White Revolution
34 SHG was introduced in
A. 1984
B. 1992
C. 1995
D. 1985
35 Which is the apex institute at national level which provide re-finance facilities to institutions
engaged in providing rural credit
A. DABARD
B. NABARD
C. NABADR
D. NBAARD

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36 Rural development implies
A. Development of agriculture
B. Providing health facilities in rural areas
C. Spread of agriculture among rural people
D. Everything that raises quality of life of rural people
37 Rural development implies
A. Development of agriculture
B. Providing health facilities in rural areas
C. Spread of agriculture among rural people
D. Everything that raises quality of life of rural people
38 Why it was considered to replace the private money lender by institutional source of credit
A. The supply of credit was irregular
B. Money lender took advantages of ignorance of the cultivator
C. All of these
D. The rate of interest was invariably high
39 In 1988 which scheme was established
A. NAMARD
B. Kisan Credit Card
C. Bharat Nirman
D. SHG
40 Farmers cannot retain the produce for a long time they have to sell it immediately. Which defect
of agriculture is shown in this system
A. Unregulated market
B. Distress sale
C. Lack of information
D. False weight
41 Operation flood started in
A. 1945
B. 1956
C. 1970
D. 1960
42 Non-institutional sources of agricultural credit
A. Traders
B. Regional banks
C. Commercial banks
D. NABARD
43 NABARD stands for
A. Native Bank for Agriculture and Rural Development
B. National Bank for Agriculture and Real Development
C. National Bank for Agriculture and Rural Development
D. Native Bank for Agriculture and Real Development
44 Rural population need short term loans
A. For purchasing inputs
B. For paying old debt
C. For buying cattle
D. For buying tractors

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45 Fish production from inland sources contributes about ____ percent to the total fish production
and the balance ___ percent from main sector
A. 75,25
B. 25,75
C. 51,49
D. 49,51

46 Why do farmers need credit?

a) For purchasing agricultural inputs like seeds, fertilizer, pesticide, insecticides and
gricultural instruments.
b) For payment for labourers .
c) For observing different social functions and family functions.
d) All of the above
47 Which of the following is not a formal source of credit?
a) Commercial Banks
b) Cooperative credit societies
c) Landlords
d) Regional Rural Banks
48 Which of the following is not a function of agricultural marketing?
a) Collection of surpluses from the individual farmers
b) Transportation to nearest assembling centre
c) Grading and standardization
d) Public Distribution system.
49 TANWA was set up to:-
a) Train farmers for organic farming methods
b) Train women in latest agricultural techniques
c) Practice green revolution
d) Arrange credit for the farmers
50 Who is the founder of operation flood?
a) Dr VergheseKurien
b) Dr V K R V Rao
c) Shri N Sadasivan
d) None of the above
51 Diversification of agriculture implies: -
a) Change in cropping pattern
b) A Shift of workforce from agriculture to other allied activities and non – agricultural
sector
c) Either (a) or (b)
d) Both (a) and (b)
52 The “Golden Revolution” was a period of very high productivity in:
(A) Foodgrain production
(B) Horticulture
(C) Organic Farming
(D) Pisciculture

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53 Credit needs related to constructing fences & digging wells are fulfilled by:
(A) Short-term credit
(B) Long-term credit
(C) Medium-term credit
(D) None of the above
54 It is quite essential to expand the baking services in the rural areas due to:
(A) Increased awareness among the rural masses
(B) Providing loans at a lower rate of interest
(C) Bringing more people under the purview of formal sources of credit
(D) All of the above
55 The “Operation flood” programme was successfully implemented from the year:
(A) 1892
(B) 1982
(C) 1966
(D) 1995
56 Which of the following is not related to the programme “Kudumbashree”?
(A) It has been implemented in Karnataka since 1995.
(B) Its sole objective was to promote savings.
(C) Such societies have won accolades as the largest informal banks in Asia.
(D) It has able to mobilize Rs 1 crore as thrift savings.
57 The alternate marketing channels in Punjab, Haryana and Rajasthan are known as:
(A) Apni Mandi
(B) Navi Mandi
(C) Sabki Mandi
(D) None of these
58 Which of the following cannot be categorized as productive borrowings?
(A) Loan taken by a farmer to purchase a tractor
(B) Loan taken by a farmer for his daughter’s marriage
(C) Loan taken for purchase of fertilizers & pesticides
(D) Loan taken by a student to pursue studies abroad
59 The institutional source 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) Commercial bank
(B) Self-help group
(C) NABARD
(D) Regional Rural Bank
60 The sector providing alternate livelihood options to 70 million small and marginal farmers is:
(A) Livestock
(B) Agro-processing
(C) Apni Mandi
(D) Fisheries
61 Which of the following is true about organic farming?
(A) Yields in organic farming are lower than in chemical farming.
(B) It adversely effects the fertility of the soil.
(C) Organically grown food is more healthier and tastier.
(D) It is quite expensive method of farming.

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62 Which of the following provides a correct explanation of rural development?
(A) Economic & legal uplifment of rural areas
(B) Social and technical uplifment of rural areas
(C) Social and legal uplifment of rural areas
(D) Economic and social uplifment of rural areas
63 Which of the following is the major defect in the agricultural marketing system?
(A) Fair measurement
(B) Standardisation
(C) Lack of storage facilities
(D) Regulated marketing
64 The main objective of the Saansad Adarsh Gram Yojana (SAGY) as introduced by the
Government of India in 2014 is:
(A) identify and develop one village from their constituencies
(B) opening up of schools & hospitals across the state
(C) provision of loans at a lower rate of interest
(D) None of the above
65 Which source of credit had emerged to fully integrate the formal credit system into the overall
rural social and community development?
(A) Self-help Groups
(B) Regional Rural Banks
(C) Commercial Banks
(D) Land Development Banks
66 What was the growth rate of agricultural output during 2007-12?
(A) 5% per annum
(B) 6% per annum
(C) 1.5% per annum
(D) 3.2% per annum

67 Nationalisation of commercial banks took place in …

(a) 1967 (b) 1965 (c) 1962 (d) 1969
68 NABARD is a………… source of rural credit.
(a) Institutional (b) Non-institutional (c) Cooperative society
69 SHG means
(a) Small Help Group (b)Self Help group (c) Both (d) None of these
70 Which of the following is an option of employment outside agriculture? (a)Animal
husbandry(b)Horticulture(c)Fisheries(d)All of these
71 Organic farming is a ___________ farming system. (a) sustainable(b) unsustainable
72 In ___________, fisheries is an important source of livelihood.(a) Gujarat (b) Punjab
73 Long period credit is needed for (a) construction fences (b) purchase of land (c) purchase of
seeds
74 Rural development will bring (a) Employment opportunities (b) Raise standard of living (c)
Both
75 When were regional rural banks initiated in India?
(a) 1970 (b)1975 (c) 1980 (d) 1985
76 Animal husbandry comes under which sector? (a) Primary sector (b) Secondary sector (c)
Tertiary sector

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77 When was Kisan Credit Card issued in India? (a) 1988-89 (b) 1998-99 (c) 1999-2000 (d) 2001-
2002
78 Which of the following is not related to agricultural marketing? (a) Storage (b) Preservation (c)
Processing (d) Use of chemical fertilisers
79 Which of the following is expected to improve the marketing system? (a) Regulated markets (b)
Improvement in transportation (c) Minimum support price (d) All of these
80 ______________ discards the use of chemical inputs. (a) Organic farming (b) Animal
husbandry
81 PDS implies distribution of food grains through ___________ at subsidized rates. (a) fair price
shops (b) co-operative marketing

82 NBARD is a part of ---------- which provide the credit facility in Rural Area for the
development of Agriculture and Village.
( A) S.B.I
( B) U.B.I
( C) R.B.I
( D) None of these
83 Cash Crops Production will help to ------------- Farmer’s Income.
(A) Increased
(B) Decreased
(C) Constant
(D) Both A & B
84 Organic Farming help the farmer to -------------- sustain food in the life.
(A) improved
(B) decreased the quality
(C) increase the quantity
(D) None of these
85 Buffer Stock is related with ----------
(A) Minimum Support Price
(B) Maximum Support Price
(C) Rationing Price
(D) None of these
86 Long Term Credit is required for ---------
(A) Purchase of Tractor
(B) Purchase of New land
(C) Both A & B
(D) None of these
87 Now a day most of farmers in West Bengal are producing Marigold in their Farms. These are
included into .---------
(A) Farming
(B) Animal Husbandry
(C)Horticulture
(D) None of these

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88 High Crop Productivity led to ------------- revaluation in farming sector of Indian Economy.
(A) green (B) golden
(C) silver (D) None of these
89 Use of Chemical Fertilizer in agriculture sector led to -------------
(A) Food-pollution
(B) Soil-pollution
(C) Both A & B
(D) None of these
90 Which market is the major key of Rural Development ?-------
(A) Sunday
(B) Central
(C) Agricultural
(D) None of these
91 Which Programme are helpful for the Rural Development of Indian Economy?-------
(A) Pradhan Mantry Gram Sadak Yojana
(B) Pradhan Mantry Gram Pay Jal Yojana
(C) Aatm-Nirvar Bhart
(D) All of these
92 ‘Dairy Farm is very famous in Begusarai District of Bihar’ which will included under ------------
----
(A) Farming Activity
(B) Non-farming Activity
(C) Agricultural Activity
(D) None of these
93 Commercial ‘SUD-KHOR’ Mahajan is the major --------------- sources Rural Credit.
(A) Institutional
(B) Non- Institutional
(C) Agricultural
(D) None of these
94 The Current Prime-Minister of Indian Economy are providing the fastest system of Net in Rural
Area for the purposes of----------
(A) Communication Development
(B) Rural Development
(C) Agricultural Development
(D) All of these
95 Livestock Farming is helpful for Rural people under ------------------
(A) Diversification of Crop Production
(B) Diversification of Production Activity
(C) Diversification of Employment
(D) B & C
96 ‘OPERATION FLOOD’ launched in India in 1966 was popular as --------
(A) Golden Revolution
(B) Green Revolution
(C) White Revolution
(D) Flood Revolution

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 ANSWERS
1-B 2-C 3-B 4-A 5-D 6-C 7-C 8-B 9-D 10-B
11-A 12-B 13-C 14-C 15-C 16-D 17-A 18-B 19-C 20-D
21-C 22-B 23-C 24-B 25-C 26-A 27-E 28-A 29-C 30-B
31-C 32-A 33-C 34-B 35-B 36-D 37-D 38-C 39-B 40-B
41-C 42-A 43-C 44-B 45-D 46-A 47-C 48-D 49-B 50-A
51-D 52-B 53-C 54-D 55-C 56-A 57-A 58-B 59-D 60-A
61-C 62-D 63-C 64-A 65-A 66-D 67-D 68-A 69-B 70-D
71-A 72-A 73-B 74-C 75-B 76-A 77-B 78-D 79-D 80-A
81-A 82-C 83-A 84-A 85-A 86-C 87-C 88-B 89-C 90-C
91-D 92-B 93-B 94-D 95-D 96-C

PREPIRED BY : PGT ECONOMICS OF BHUBANESWAR,

GUWAHATI, KOLKATA, RANCHI, SILCHAR AND TINSIKIA REGION .
VETTED BY : GUWAHATI REGION

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