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

12 | P a g e 8 October 2021,ZIET BHUBANESWAR

CHAPTER-6-RURAL DEVELOPMENT
CASE STUDY BASED QUESTIONS
1 Agricultural diversification has two aspects - the first relating to a change in cropping pattern
and the other relating to diversification of production activity involving a shift to other allied
activities (livestock farming, dairying, poultry, fisheries etc.) and non-farm sector (agro
processing industry, traditional handicrafts, cottage industry, pottery etc.). This not only
provides productive sustainable livelihood options to rural people but also help in lowering
the risk involved in depending exclusively on farming for livelihood. Agriculture is
overcrowded and it fails to provide gainful employment throughout the year therefore,
expansion into allied activities, non-farm employment and emerging alternatives of livelihood
in sectors other than farming becomes essential to provide supplementary employment
opportunities and raise the level of income for rural people. To cite an example, Tamil Nadu
Women in Agriculture (TANWA) is one such project initiated in Tamil Nadu to train women in
latest agricultural techniques and help them raise family income by engaging in other income
generating activities like vermicomposting, mushroom cultivation, soap manufacture, doll
making etc
1. A shift from mono cropping to multi cropping system is referred to as diversification of------
------. (Crop production/production activity).
2.Which of the following types of unemployment is inherent in agriculture sector? (Choose
the correct alternative)
(a)Cyclical
(b) Disguised
(c) Seasonal
(d) Both (b) and (c) above
3. Which of the following is not a benefit of diversification? (Choose the correct alternative)
(a) It reduces the risk of price fluctuation and failure of monsoon
(b) It helps in increasing the level of income of rural people
(c) It helps in provision of credit at cheap rate and without collateral
(d) It provides additional employment opportunities

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4. Women who are a part of TANWA have diversified the cropping pattern to enhance their
earnings. (State True or False)
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 rural 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 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 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

1. NABARD was set up in ------------------ as an apex body to coordinate the activities of all
institutions involved in the rural financing system
2 . The ___________ was a harbinger of major changes in the credit system as it led to the
diversification of the portfolio of rural credit towards production-oriented lending.
(a) Green Revolution. (b) Golden Revolution.
(c) White revolution. (d) None of these
3. Recently, Self Help Groups have emerged to fill the gap in the formal credit system. Such
credit provisions are generally referred to as_____________
4. 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
3
The concept of integrated rural development addresses various rural problems like widespread
poverty, unemployment, illiteracy, exploitation, inequitable distribution of land, poor health
conditions etc. It signifies those various facts of rural development are integrally connected.
The development of rural areas, often rural development, has meant the extension of irrigation
facilities, expansion of electricity, improvement in the techniques of cultivation, construction
of school buildings and provision of educational facilities, health care etc. Agricultural
development constitutes the crucial aspect of rural development. Agricultural development is
possible through the use of better seeds, adequate fertilisers, manures, and pesticides, adequate
supply of water and effective implementation of land reform measures.

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1.Most of the rural area is underdeveloped in India due to:
a. Lack of basic infrastructure
b. Lack of natural resources
c. Exploitation of natural resources
d. Poor health facilities

2.Rural development is integrated with the development of:

a. Health and education
b. Agriculture development
c. Employment opportunities
d. All of these

3. Agriculture development basically depends upon:

a. Means of irrigation
b. Better quality of seeds
c. Modern technique of farming
d. All of these

4.The Indian economy is considered as a rural economy due to:

a. rural sector is creating more GDP rather than urban sector
b. It is based on agriculture
c. More than 50% of population is engaged in agriculture sector
d. None of the above

5.In which five years plan, land reforms were implemented in India?
a. First five years plan
b. Second five years plan
c. Third five years plan
d. Fourth five years plan

4 Since ages, farmers in India borrow to finance their debts. In the earlier times, it was done by
informal sources but now with the help of the government, formal sector has actively come
into picture. Farmers borrow not only to meet their investment needs but also to satisfy their
personal needs. Farmers faced uncertainity of income due to factors like crop failure caused by
irregular rainfall, reduction in ground water table, pest attack etc. These reasons push them into
the clutches of the private moneylenders, who charde exorbitant rates of interest which add to
their miseries.
Various governments in India, at different times for different reasons, introduced debt waiver
schemes. These schemes are used by governments as a quick means to extricate farmers from
their indebtedness, helping to restore their capacity to invest and produce, in short to lessen the
miseries of the farmers across India. The coast and benefits of such debt relief schemes are,
however, a widely debated topic among the economists.

Some economists argue that such schemes are extremely beneficial to the poor and
marginalized farmers while others argue that these schemes add to the fiscal burden of the
government, others believe that these schemes may may develop the expectation of repeated
bailouts among farmers which may spoil the credit culture among farmers.

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1.Uncertainty of farmers in India is majorly caused by…….
a. Irregular rainfall
b. Unavailability of loans
c. Lack of skills
d. None of the above

2.Some economists argue that debt waiver schemes are extremely beneficial to the poor and
marginalized farmers, as these schemes reduce the burden of …..
a. Indebtedness
b. Personal expenditure
c. Debt of technical education & training
d. All of the above

3.The rural banking structure in India consists of a set of multi-agency institutions. Which of
the following is expected to dispense credit at cheaper rates for agricultural purposes to
farmers?
a. SIDBI
b. FICCI
c. RRBs
d. DEA

4.………… is the most prominent body responsible for providing loans for long-term land
development.
a. SIDBI
b. FICCI
c. RRBs
d. Land Development Banks (LDBs)

5 Diversification includes two aspects- one relates to change in cropping pattern and the other
relates to shift of workforce from agriculture to other allied activities like livestock, poultry,
fisheries etc. and non -agriculture sector. The need for diversification arises from the fact that
there is greater risk in depending exclusively on farming for livelihood. Diversification towards
new areas is necessary not only to reduce the risk from agriculture sector but also to provide
sustainable livelihood options to rural people. Much of agricultural employment activities are
concentrated in the kharif season. But during the Rabi season, in areas where there are
inadequate irrigation facilities, it becomes difficult to find gainful employment. Therefore,
expansion into other sectors is essential to provide supplementary gainful employment and in
realising higher levels of income for rural people to overcome poverty and other tribulations.

4|Page 8 October 2021,ZIET BHUBANESWAR

1………… relates to shift of workforce from agriculture to two other allied activities.
(A) micro cropping
(B) diversification
(C) both A and B
(D) none of these
2. Livestock comes under the category of -------- activities.
(A) diversification
(B) allied
(C) agriculture
(D) commercial
3. Diversification provides – ----------- options to rural people. (Livelihood / irrigation).
4. Diversification reduces the risk from agriculture sector. (True/False)

ANSWER

1 1-Crop production
2-D
3-C
4-true
2 1-1982
2-A
3-Mjcro credit
4-C
3 1-A
2-D
3-D
4-C
5-B
4 1-A
2-A
3-C
4-D
5 1-B
2-B
3-Livelihood
4-True

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5|Page 8 October 2021,ZIET BHUBANESWAR
CHAPTER-6-RURAL DEVELOPMENT
TRUE AND FALSE QUESTIONS
1 Horticulture sector contribute nearly 1/3 of value of agriculture output and 6 % of Gross
Domestic Product of India
(A)TRUE
(B)FALSE
2 Inland sources contributes about 36% to total value of fish production and balance 64%
comes from the marine sector
(A)TRUE
(B)FALSE
3 The share of agriculture sector’s contribution to GDP was on decline, the population
dependent on this sector did not show any significant change
(A)TRUE
(B)FALSE
4 If a farmer is compel to sell his agricultural surplus to traders at lower price that is called
forced sale.
(A)TRUE
(B)FALSE
5 Activities of waiving off loans lead the people towards good habit.
(A)TRUE
(B)FALSE
6 Rural development mostly depends upon the development of agriculture.
(A)TRUE
(B)FALSE
7 Farmers borrow from various sources to meet their initial investment on seeds, fertilizers,
implements, and other family expenses.
(A)TRUE
(B)FALSE
8 The major achievement of rural banking over the years has been the effective recovery of
loans
(A)TRUE
(B)FALSE
9 Self-help groups have helped in the empowerment of women.
(A)TRUE
(B)FALSE

1|Page 8 October 2021,ZIET BHUBANESWAR

10 Horticulture is a branch of agriculture-related to the management and care of farm animals
such as cattle, sheep, pigs, and goats.
(A)TRUE
(B)FALSE
11 NABARD Is the Apex body which coordinates the functioning of different financial institution working
for expansion of rural credit
(A)TRUE
(B)FALSE
13 The scheme of ‘Micro Finance’ extended through NABARD
(A)TRUE
(B)FALSE
14 The loan taken by the farmer for purchase of cattle and agricultural equipment is not called medium
term loan
(A)TRUE
(B)FALSE
15 Horticulture, Dairy, Poultry and Fisheries sectors yield high, quick and regular income to the farmers
(A)TRUE
(B)FALSE

16 Organic farming is based on the use of chemical pesticides and chemical fertilisers
(A)TRUE
(B)FALSE

17 Food Corporation of India maintains buffer stocks of wheat and rice in India.
(A)TRUE
(B)FALSE
18 Commercial banks and Regional Rural banks are sources of non-institutional sources of credit.
(A)TRUE
(B)FALSE
19 Growing of flowers, fruits and vegetables is termed as horticulture.
(A)TRUE
(B)FALSE
20 NABARD was set up in 1982
(A)TRUE
(B)FALSE
21 Moneylenders, traders, commission agents, landlords, relatives and friends are the examples
of institutional sources.
(A)TRUE
(B)FALSE
22 Self-help groups has helped in the empowerment of women.
(A)TRUE
(B)FALSE

2|Page 8 October 2021,ZIET BHUBANESWAR

23 India has a comparative advantage in organic farming as it is a capital-intensive process
(A)TRUE
(B)FALSE
24 The period between 1991-2003 is called “Golden Revolution”.
(A)TRUE
(B)FALSE
25 Rural development mostly depends on the development of agriculture
(A)TRUE
(B)FALSE
26 Chemical fertilizers sustain soil fertility.
(A)TRUE
(B)FALSE
27 Regulated markets were first established in Punjab
(A)TRUE
(B)FALSE
28 SBI was set up in 1955 for providing only Urban Credit.
(A)TRUE
(B)FALSE
29 Fishery Technology be upgraded and made available to the fishing community in the Rural
Area of Indian Economy.
(A)TRUE
(B)FALSE
30 Tamil Nadu Women in Agriculture project are functioning just like SHGs and promote
cottage and household productivity activity.
(A)TRUE
(B)FALSE

ANSWERS

1-A 2-B 3-A 4-A 5-B 6-A 7-A 8-B 9-A 10-B
11-A 12-B 13-B 14-B 15-A 16-B 17-A 18-B 19-A 20-A
21-B 22-A 23-B 24-A 25-A 26-B 27-B 28-B 29-A 30-A

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3|Page 8 October 2021,ZIET BHUBANESWAR

CHAPTER-6-RURAL DEVELOPMENT
ASSERTION- REASON QUESTIONS
Sl Question
1 Assertion (A): NABARD was set up in 1982 to coordinate the activities of all institutions
involved in rural financing system.
Reason (R): Commercial banks and other financial institutions have failed to develop a culture
of deposit mobilization.
Choose the correct option for below given questions
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A). b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true, but Reason (R) is false.
d) Assertion (A) is false, but Reason (R) is true.
2 Assertion (A): IT can play a critical role in achieving sustainable development and food
security in 21st century.
Reason (R): Farmers are very keen to learn computer.
Choose the correct option for below given questions
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A). b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true, but Reason (R) is false.
d) Assertion (A) is false, but Reason (R) is true.
3 Assertion (A): TheSHGs promote thrift in small proportions by a minimum contribution from
each member. .
Reason (R): Macro credit refers to credit and other financial services provided to the poor
through SHG s.
Choose the correct option for below given questions
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of

1|Page 8 October 2021,ZIET BHUBANESWAR

Assertion (A). b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is true, but Reason (R) is false.
d) Assertion (A) is false, but Reason (R) is true.
4 Assertion (A): The diversification has a positive impact on the agriculture sector.
Reason (R): As it can disseminate formation regarding emerging Technologies and its
applications, prices, weather and soil conditions for growing different crops etc.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of
Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true
5 Assertion (A): The yields from organic farming are more than modern agricultural farming.
Reason (R): The yields from organic farming are less than modern agricultural farming in the
initial years.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of
Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true
6 Assertion (A): Even today more than 10% of goods produced in farms are wasted.
Reason (R): The current storage facilities are quite inadequate to meet the growing demands.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of

2|Page 8 October 2021,ZIET BHUBANESWAR

Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true.
7 Assertion (A): agriculture loan default rates have been chronically high.
Reason (R): It is alleged that farmers are deliberately refusing to pay back loans.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of
Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true.
8 Assertion (A): The fishing community regards the water body as mother or provider.
Reason (R): Because the water bodies (sea, Ocean, rivers, lakes, natural aquatic ponds etc.) are
integral and life- giving source for the fishing community.
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of
Assertion (A)
(C) Assertion (A) is true but Reason (R) is false
(D) Assertion (A) is false but Reason (R) is true
9 1. Assertion: Rural development is comprehensive term which essentially focuses on the action of
overall development of rural areas.

Reason: It is required to develop the standard of living of rural people.

A. Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of
assertion (A)
B. Both assertion (A) and reason (R) are true and reason (R) is not the correct explanation of
assertion (A)
C. Assertion (A) is true but Reason (R) is false
D. Assertion (A) is false but Reason (R) is true
10 2. Assertion: Use of HYV seeds was done by the farmers

Reason: It was one of the reforms under NEP.

A. Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of

3|Page 8 October 2021,ZIET BHUBANESWAR

assertion (A)
B. Both assertion (A) and reason (R) are true and reason (R) is not the correct explanation of
assertion (A)
C. Assertion (A) is true but Reason (R) is false
Assertion (A) is false but Reason (R) is true
11 3. Assertion: Diversification of crops shifted from single cropping system to multiple cropping.

Reason: It increases the risk of market arises due to price fluctuations.

A. Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of
assertion (A)
B. Both assertion (A) and reason (R) are true and reason (R) is not the correct explanation of
assertion (A)
C. Assertion (A) is true but Reason (R) is false
D. Assertion (A) is false but Reason (R) is true
12 4. Assertion: Role of Information technology was essential in rural sector.

Reason: Farmers were interested in learning computers.

A. Both assertion (A) and reason (R) are true and reason (R) is the correct explanation of
assertion (A)
B. Both assertion (A) and reason (R) are true and reason (R) is not the correct explanation of
assertion (A)
C. Assertion (A) is true but Reason (R) is false
D. Assertion (A) is false but Reason (R) is true
13 Read the Assertion (A) and Reason (R) and choose the correctalternative: -
Assertion (A) :- Rural development includes only agricultural development
Reason (R) :- Rural development aims at improving the economic and social conditions of people living
in village
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
c) Assertion (A) is true and Reason (R) is false
d) Assertion (A) is false and Reason (R) is true
14 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- The focus of self help group is largely on the rural poor.
Reason (R) :- Rural poor have no sustainable access to formal banking system
Alternatives:
e) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
f) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
g) Assertion (A) is true and Reason (R) is false
h) Assertion (A) is false and Reason (R) is true
15 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- India ranks first in world in milk production
Reason (R) :- India’s milk production increased due to operation flood.
Alternatives:
i) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
j) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
k) Assertion (A) is true and Reason (R) is false

4|Page 8 October 2021,ZIET BHUBANESWAR

l) Assertion (A) is false and Reason (R) is true
16 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- Indian government took various measures to improve agricultural marketing.
Reason (R) :- Farmers were often forced to sell at low prices due to lack of required market
information.
Alternatives:
m) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
n) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
o) Assertion (A) is true and Reason (R) is false
p) Assertion (A) is false and Reason (R) is true
17 Read the Assertion (A) and Reason (R) and choose the correct alternative:-
Assertion (A) :- Diversification of crop production lead to shift from single cropping system to multi
cropping system
Reason (R) :- It reduced the income of farmers due to increase in market risk because of price
fluctuation.
Alternatives:
q) Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of A
r) Both Assertion (A) and Reason (R) are true and Reason (R) is not correct explanation of A
s) Assertion (A) is true and Reason (R) is false
t) Assertion (A) is false and Reason (R) is true
18 Assertion:Cooperative marketing is a significant progressive step in the context of the
agricultural market system.
Reason: Milk cooperative in Gujarat is a brilliant example of cooperative marketing in rural
India.

(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
19
Assertion: Minimum support price purchases from the farmers are kept as buffer stocks by the
government.
Reason: Public distribution system implies distribution of food grains through fair price shops
at subsidized rates.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
20

Assertion:Measures were taken by the government to improve agricultural marketing.

Reason: Farmers while selling the product were not earning profits.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.

5|Page 8 October 2021,ZIET BHUBANESWAR

(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
21 Assertion: Use of HYV seeds was done by the farmers.
Reason: It was one of the reforms under NEP.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.
22 Assertion:Rural development is essential for Indian economic development.
Reason: Rural development creates opportunities in rural areas for education.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.

ANSWER

1-B 2-C 3-C 4-A 5-D 6-B 7-A 8-A 9-A 10-C
11-C 12-C 13-D 14-A 15-A 16-A 17-C 18-A 19-B 20-A
21-C 22-A

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