ARMY PUBLIC SCHOOL NO.

1,JABALPUR
CLASS XII
ECONOMICS(030)
CHAPTER 5: RURAL DEVELOPMENT
ASSERTION –REASON BASED QUESTIONS
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.

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.
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

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.

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

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.

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.

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.

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.
9. Assertion (A) :- India ranks first in world in milk production .
Reason (R) :- India’s milk production increased due to operation flood.

10. Assertion: Measures were taken by the government to improve agricultural marketing.
Reason: Farmers while selling the product were not earning profits.

STATEMENT BASED QUESTIONS

Choose the correct option from the given questions:

a. Both the statements are true.
b. Both the statements are false.
c. Statement 1 is true and statement 2 is false.
d. Statement 1 is false and statement 2 is true.
1. Statement 1: The State Bank of India was established in 1969 with a focus on rural credit.

Statement 2: The State Bank Of India was set-up to promote credit supplies,particularly in the remote
rural areas and backward district.

2. Statement 1: The Kisan credit card scheme aims at adequate and timely support to the farmers for their
short-term needs.

Statement 2: Alarming high default rate may shake the very foundation of rural banking.

3. Statement 1: Operation flood is relatd with Milk production.

Statement 2: Dairy Farming is the major source of livelihood in Rural areas.

4. Statement 1: TANWA is a project launched in Tamil nadu with a view to train women .

Statement 2: This group function like SHGs.

5. Statement 1: ‘Apni Mandi’ is a marketing channel in Andhra Pradesh.

Statement 2: This is provided direct sale by the farmers to the consumers.

MATCH THE COLUMN

1. Choose the correct Pair

COLUMN 1 COIUMN II
A. Village traders i. An institutional source of rural credit.
B. Kudumbashree ii. Started in Kerela in 1995
C. Agricultural Marketing iii. An emerging challenge
D. Alternative marketing Channel iv. Sale by the farmers to the middlemen

Alternatives

(a) A-I b) B-ii c) C-iii d) D-iv

2. Match the Column

COLUMN 1 COIUMN II
A. Long Term credit i. Shifts from single cropping pattern
to multi-cropping pattern
B. NABARD ii) To enable permanent improvements
on land
C. Diversification of crop production iii) An emerging challenge of rural
development
D. Animal Husbandry iv) An Apex institution to provide
rural credit

IMAGE BASED QUESTIONS

1. ‘Farmers resort to onion distress sale’, an article published by Orissa Post on 17th May, 2021. On
account of the figure given below, give the meaning of ‘distress sale’. Also explain any two obstacles that
hinders the mechanism of agricultural marketing.

2. Indentify the market given below and write its features

3. Interpret the given picture on account of education to farmers and its impact on their productivity

4. Which Element of Diversification shows in the given Image “ explain”

5. ) Explain the following as a Institutional source of credit

MULTIPLE CHOICE QUESTIONS

1. What does the Micro Credit programme mean?

(a) Credit provision made by small farmers

(b) Credit provision made by self-help groups to its members

(c) Credit provision made by large farmers

(d) None of the above

2. What is the full form of NABARD?

(a) National Bank of Agriculture and Rural Development

(b) Native Bank of Agriculture and Rural Development

(c) Native Bank of Agriculture and Real Development

(d) National Bank of Agriculture and Real Development

3. Non-institutional sources of agriculture credit are?

(a) Commercial Bank

(b) NABARD
(c) Regional Bank

(d) Traders

4. Which of the following is false regarding SHGs?

(a) Small and informal association for a poor person

(b) Provide rural credit by mobilizing their own resources

(c) Introduced in 1982

(d) Improve rural poor access to a formal credit system

5. Write two instruments to safeguard the interest of farmers by the government.

6. . When was the National Bank for Agricultural and Rural Development set up?

(A) 1962 (B) 1972 (C) 1982 (D) 1992

7. Which of the following is an institutional source of rural credit?

(A) Moneylenders (B) Regional Rural Banks (C) Traders (D) Landlords

8. 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

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 Indian state has been held as a success story in the efficient implementation of milk cooperatives?

(A) Punjab (B) Gujarat (C) Uttar Pradesh (D) West Bengal

11. 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

12. How much do the “inland sources” contribute to the total fish production in India?

(A) 64 percent (B) 39 percent (C) 50 percent (D) 75 percent

13. Which status has been accorded to the retail chains and supermarkets for selling organic food?

(A) Eco Status (B) Sustainable Status (C) Nutritional Status (D) Green Status

14. 1. Rural development means:-

A. Providing education to rural people

B. Providing health facilities to rural people

C. Development of agriculture

D. Which raises quality of life or standard of living of rural people

15. Organic farming is very useful due to ……..

A. Less use of pesticides B. Less use of insecticides

C. Improvement in soil fertility D. All of the above

16. Announcement of prices of agricultural goods every year is known as;

A. Support price B. Agricultural Price C. Cost Price D. All of the above

17. Identify which of the following is not a step taken by the government to improve agricultural marketing?

a) Maintenance of buffer stock b) Regulated markets

c) Promotion of cooperative marketing d) Promoting trade by Big rural merchants.

18. “In order to reduce over-dependence on agriculture sector it is necessary to opt for diversification”. With
reference to the given statement ,diversification includes:

i) Change in cropping pattern ii) Shift of workforce from agriculture to allied sector

iii) Shift of workforce from agriculture to non-agriculture sector

Alternatives:

a) I,ii b) I,ii,iii c) I,iii d) Only iii

19.Which of the following is not the benefit of Golden Revolution?

a)Increase in the income of farmers.

b) Increase in the production of milk and related products.

c) increase in production and exports of fruits and vegetables.

d) Employment for women in Rural areas

20._____________ is the apex institution to provide credit in rural areas.

CASE BASED Questions

1. Rural Development is the key issue with the government. Without the development of rural areas India
cannot increase its growth to desired level. Rural development does not mean only to develop its agriculture
marketing and credit but also to develop education, training, and infrastructure in rural areas. The
government has launched many programs especially of provision of credit and marketing facilities. The
farmers often have shortage of funds. Farmers generally go to non-institutional sources for their short term
and long term loans. But farmers are generally exploited. To help them government started provided loan
through commercial banks and an apex bank named NABARD was established in 1982. Government is also
making efforts to improve agricultural marketing by removing the role of intermediaries where farmers can
directly sell their produce to seller without involving any commission agent or middlemen.

a .Name the Non-institutional sources of credit

b. When was NABARD established? Write its main functions also.

2.

a. State and discuss ,any two objectives which the government of india wanted to achieve through ‘Sansad
Adarsh Gram Yojana(SAGY)’.

b. State the yardstick for selecting villages under the SAGY scheme.