11/11/22, 2:09 PM MCQs on Rural Development

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MCQs on Rural Development

Rural Development is a series of steps taken to enhance living standards and quality of life of the population, living in
rural and remote areas of a country. The government has to invest in areas such as education, public health,
employment, infrastructure development, agriculture, etc., to improve the quality of life for the rural populace.

We have listed some multiple-choice questions and answers on rural development to help students get a holistic view
of this topic:

1. Which of these is not an objective of rural development?

a. To improve wages for the urban population
b. To work on removing unemployment in rural areas
c. To enhance the living standards of rural people
d. To improve wages for the rural population
Answer: a

2. Initiatives for implementing rural development include _______.

a. Improving public health
b. Setting up facilities for agricultural research
c. Infrastructure development in rural areas
d. All of the above
Answer: d

3. When was the National Bank for Agriculture and Rural Development (NABARD) set up?
a. 1969
b. 1975
c. 1982
d. 1991
Answer: c

4. Which of the following are institutional sources of rural credit?

a. Regional rural banks
b. Landlords
c. Traders
d. Moneylenders
Answer: a

5. ________ help integrate formal credit systems into rural societies.

a. Land development banks
b. Self-help groups
c. Regional rural banks
d. Commercial banks
Answer: b

6. The process of assembling, storage, grading, packaging and distribution of different agricultural products is
known as ______________.
a. Agricultural marketing
b. Agricultural diversification
c. Agricultural management
d. Agricultural banking
Answer: a

7. Which of these programs were initiated by the Government of India for rural development?
a. National Rural Livelihood Mission
b. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c. Pradhan Mantri Gram Sadak Yojna
d. All of the above
Answer: d

8. Which of the following are non-institutional sources of rural credit?

a. Regional rural banks
b. Moneylenders
c. Commercial banks
d. None of the above
Answer: b

9. The apex funding agency in India for providing rural credit is ____________.
a. State Bank of India
b. Regional rural banks
c. National Bank for Agriculture and Rural Development (NABARD)
d. None of the above
Answer: c

10. Self-help groups offer credit to rural households ________.

a. At a moderate rate of interest
b. Without collateral

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c. Both a and b are incorrect
d. Both a and b are correct
Answer: d

11. Alternative marketing channels help farmers _____ their market and ______ their price risk.
a. Expand, expand
b. Reduce, reduce
c. Expand, reduce
d. Reduce, expand
Answer: c

12. _______ is a promise to farmers that the government would buy their produce at a particular price.
a. Maximum Retail Price
b. Minimum Support Price
c. Both a and b are correct
d. Both a and b are incorrect
Answer: b

13. _______ is a financial intermediary committee in villages with 10-20 people.
a. National Bank for Agriculture and Rural Development (NABARD)
b. Microcredit program
c. Self-help group
d. None of the above
Answer: c

14. The problems faced by agricultural markets in rural areas are _______.
a. Malpractice in unregulated markets
b. Lack of storage facilities
c. Lack of adequate finance
d. All of the above
Answer: d

15. Microcredit Program is defined as _______.

a. Credit provision made by self-help groups to their members
b. Credit provision made by small farmers
c. Credit provision made by large farmers
d. None of the above
Answer: a

16. Operation Flood is related to ________.

a. Milk cooperatives
b. Pulses cooperatives
c. Cereals cooperatives
d. None of the above
Answer: a

17. Which of the following is not true about self-help groups?

a. They were introduced in 1982
b. They are a small association of rural people
c. They help rural poor access the benefits of the credit system
d. All of the above are false
Answer: a

18. Self-help groups were introduced in ___________.

a. 1982
b. 1996
c. 1992
d. 1988
Answer: c

19. Which of these schemes was established in 1988?

a. Kisan credit card
b. Self-help groups
c. Bharat Nirman
d. None of the above
Answer: a

20. Which of these schemes allows people from Below Poverty Line (BPL) to get essential goods at subsidised
rates?
a. Public Distribution System
b. Buffer Stock
c. Minimum Support Price
d. None of the above
Answer: a

Also See:
What is the role of cooperatives in rural development? (https://byjus.com/commerce/role-of-cooperatives-in-
rural-development/)
National Bank for Agricultural and Rural Development (https://byjus.com/free-ias-prep/nabard/)

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