MCQs RURAL DEVELOPMENT TERM-1

RURAL DEVELOPMENT
INDIAN ECONOMIC DEVELOPMENT
CHAPTER 6

Objective type Questions

1. ________ is the major source of livelihood in the rural sector
A. Manufacturing
B. Agriculture
C. Service
D. Fishing

Ans. B

2. Who among the following once said “ the real progress of India did not mean simply the growth & expansion of industrial urban centres but mainly the development of the villages”?
A. Jawaharlal Nehru
B. Sardar Patel
C. Karve Committee
D. Mahatma Gandhi

Ans. D

3. Consider the following statements and identify the incorrect statement(s)
A. Rural development focuses on action for the development of areas that are lagging behind in the overall development of the village economy
B. The people engaged in farm and non-farm activities in rural areas have to be provided with various means that help them increase the productivity
C. Two-third of India’s population depends on agriculture
D. Although the share of agriculture sector’s contribution to GDP was on a rise, the population dependent on this sector did not show any significant change

Ans. D

Contribution of agriculture sector to GDP was on a decline

4. Read the following statements – Assertion (A) and Reason (R) & Choose the correct option
Assertion (A) – In recent years, the agriculture sector has become volatile
Reason (R) – Decline in public investment since 1991 is the major reason for this
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

Ans. A

*After the initiation of reforms, the growth rate of agriculture sector decelerated to about 3 per cent per annum during the 1991-2012

*During 2014-15, the GVA growth rate of agriculture and its allied sectors was less than one per cent

5. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Inadequate infrastructure, lack of alternate employment opportunities in the industry or service sector, increasing casualisation of employment etc., further impede rural development.
Statement 2 – Use of chemical fertilizers is related to agricultural marketing
A. Both the statements are false.
B. Statement 1 is true and Statement 2 is false
C. Statement 2 is true and Statement 1 is false
D. Both the statements are true

Ans. B

Use of chemical fertilizers is not related to agricultural marketing

6. Growth of rural economy depends primarily on the infusion of _______
A. Infrastructure
B. Fertilisers
C. Capital
D. Land

Ans. C

7. Why farmers need rural credit?
A. To purchase seeds, fertilizer, pesticide & insecticide
B. To purchase tractors, tube wells & animals
C. To repay previous loans
D. All of these

Ans. D

8. 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.
(Fill in the blank with correct alternative)
A. cooperative
B. apex
C. microcredit
D. private credit

Ans. B

9. After ______ India adopted social banking & multi-agency approach to meet the needs of rural credit.
A. 1967
B. 1982
C. 1970
D. 1969

Ans. D

10. Read the following statements – Assertion (A) and Reason (R) & Choose the correct option
Assertion (A) – White revolution was a harbinger of major changes in the credit system
Reason (R) – Green revolution led to the diversification of the portfolio of rural credit towards production-oriented lending
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

Ans. D

Green revolution was a harbinger of major changes in the credit system

11. Which of the following is not a multi-agency institution of rural banking?
A. NABARD
B. Regional Rural Banks
C. RBI
D. Commercial Banks

Ans. C

Other multi agency rural banking institutions –cooperatives and land development banks

 They dispense adequate credit at cheaper

12. Which programme has been launched in Kerala for poverty reduction by women ?
A. Gareebi Hatao
B. Women Poverty Reduction Programme
C. Pink Sarathi
D. Kudumbashree

Ans. D

*Implemented in 1995

13. About Rs. 10- 15,000 per SHG and another Rs. 2.5 lakhs per SHG as a __________ are provided as part of renovating fund to take up self employment for income generation

Ans. Community Investment Support Fund (CISF)

14. Read  following statements carefully and choose the correct alternatives given below:
Statement 1 – SHGs have emerged to fill gap in the formal credit system
Statement 2 –The formal credit delivery mechanism has not only proven inadequate but has also not been fully integrated into the overall rural social and community development
A. Both the statements are false.
B. Statement 1 is true and Statement 2 is false
C. Statement 2 is true and Statement 1 is false
D. Both the statements are true

Ans. D

 *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 instalments at reasonable interest rates

*Such credit provisions are generally referred to as micro-credit programmes.

15. Consider the following statements and choose the correct option:
I. Rapid expansion of the banking system helped farmers to avail services and credit facilities and a variety of loans for meeting their production needs
II. Other formal institutions have successful to develop a culture of deposit mobilisation — lending to worthwhile borrowers and effective loan recovery
III. The expansion and promotion of the rural banking sector has taken a backseat after reforms
IV. Prior to independence, farmers, while selling their produce to traders, suffered from faulty weighing and manipulation of accounts
A. II & III
B. I,III & III
C. I, III & IV
D. I,II & III

Ans. C

With the possible exception of the commercial banks, other formal institutions have failed to develop a culture of deposit mobilisation

16. Read  following statements carefully and choose the correct alternatives given below:
Statement 1 – All the adults are encouraged to open bank accounts as a part of a scheme known as Mudra Yojana
Statement 2 –Jan Dhan Yojana  has promoted thrift habit and efficient allocation of financial resources particularly in rural area
A. Both the statements are false.
B. Statement 1 is true and Statement 2 is false
C. Statement 2 is true and Statement 1 is false
D. Both the statements are true

Ans. C

*There is no need to keep minimum bank balance.

17. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – The emergence of Self-Help Groups (SHG’s) ensured the reduction in the fissures of the formal credit system.
Statement 2 – The borrowings from SHGs are mainly confined to consumption purposes by its members.

Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

18. Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below:
Assertion (A): Since the default rates of farm loans have become chronically high due to multiple reasons, the rural banks are facing a lot of cash crunch.
Reason(R): Due to lack of proper storage facilities a lot of farm produce is wasted.
Options:
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.

Ans. B

19. Uncertainty of income for farmers in India is majorly caused by _______
A. Irregular rainfall
B. Unavailability of loans
C. Govt. policies
D. FDI

Ans. A

20. The rural banking structure in India consists of a set of multi-agency institutions ___________ (Regional Rural Banks / Small Industries Development Bank of India) is expected to dispense credit at cheaper rates for agricultural purposes to farmers.

Ans. Regional Rural Banks

21. ____________ (Regional Rural Banks/ Land Development Banks) is the most prominent body responsible for providing loans for long term land development

Ans.  Land Development Banks

22. Fill in the blanks
________________is a process that involves the assembling, storage, processing, transportation, packaging, grading and distribution of different agricultural commodities across the country.
Options-
A. Kudumbashree
B. Agricultural marketing
C. Organic farming
D. Horticulture

Ans. Agricultural marketing

23. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – More than 10 per cent of goods produced in farms are wasted due to a lack of storage
Statement 2 – Government intervention became necessary to regulate the activities of the private traders
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

24. Which of the following is not a measure initiated to improve the marketing aspect?
A. Markets were regulated to create orderly and transparent marketing conditions
B. Provision of physical infrastructure facilities like roads, railways, warehouses, godowns, cold storages and processing units
C. Cooperative marketing, in realising fair prices for farmers products
D. Govt. provided direct cash transfer benefits to farmers

Ans. D

*Regulation of markets benefited farmers as well as consumers.

*The fourth measure is the policy instruments like (i) assurance of minimum support prices (MSP) for agricultural products (ii) maintenance of buffer stocks of wheat and rice by Food Corporation of India and (iii) distribution of food grains and sugar through PDS.

25. Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below:
Assertion (A): Policy instruments are aimed at protecting the income of the farmers and providing food grains at a subsidised rate to the poor
Reason(R): Despite government intervention, private trade predominates agricultural markets
Options:
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.

Ans. B

26. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Cooperatives have received a setback during the recent past due to inadequate coverage of farmer members, lack of appropriate link between marketing and processing cooperatives and inefficient financial management
Statement 2 – Some scholars argue that commercialisation of agriculture offers very low scope for farmers to earn higher incomes provided the government intervention is restricted.
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. C

*Commercialisation of agriculture offers tremendous scope for farmers to earn higher incomes provided the government intervention is restricted.

27. Which of the following is not correctly matched?

Ans.  B & D

• Hadaspar Mandi – Pune
• Uzhavar Sandies – Tamil Nadu

28. In 2020, Indian Parliament passed ____ laws to reform agriculture marketing system
A. Two
B. Three
C. Four
D. One

Ans. B

• The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act,
• The Essential Commodities (Amendment) Act and The Farmers (Empowerment and Protection)
• Agreement on Price Assurance and Farm Services Act
• *Repealed on 29 November 2021

29. Identify the incorrect statement from the following:
(Choose the correct alternative)
A. Diversification in agriculture sector provides sustainable livelihood 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.

Ans. C

*There is a need to focus on allied activities, non-farm employment and other emerging alternatives of livelihood, as they  provide supplementary  employment and in realising higher levels of income for rural people to overcome poverty and other tribulations

30. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – The need for diversification arises from the fact that there is greater risk in depending exclusively on farming for livelihood
Statement 2 – Tamil Nadu Women in Agriculture (TANWA) was a project initiated in the late 1980s in Tamil Nadu to train women in latest agricultural techniques and in organic farming
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

31. Majority of rural women find employment in ______

Ans. Agriculture

32. Which body maintains buffer stock in India
A. Food Safety & Standards Authority Of India (FSSAI)
B. Food Corporation of India (FCI)
C. Public distribution system (PDS)
D. Reserve bank of India (RBI)

Ans. B

33. Consider the following statements :
I. Livestock production provides increased stability in income, food security, and nutrition for the family without disrupting other food-producing activities.
II. Performance of the Indian dairy sector over the last three decades has been quite impressive mainly attributed to Operation Flood
III.Today total fish production accounts for 0.9 per cent of the total GDP
IV. Rampant underemployment, low per capita earnings, absence of mobility of labour to other sectors and a high rate of illiteracy and indebtedness are some of the major problems fishing community face today
A. I,II
B. I,III & IV
C. II,III & IV
D. I,II,III,IV

Ans. D

*Operation Flood -It is a system whereby all the farmers can pool their milk produced according to different grading (based on quality), processed and marketed to urban centres through cooperatives

*Gujarat state is held as a success story in the efficient implementation of milk cooperatives

34. Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below:
Assertion (A): Since Independence, the economic condition of many farmers across India has improved as they have adopted horticulture as a secondary source of income.
Reason(R): Varying climatic and soil conditions have given India an added advantage to be the producer of diverse horticultural crops.
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 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.

Ans. A

35. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – India is the second-largest producer of  mangoes, bananas, coconuts, cashew nuts and a number of spices
Statement 2 – India has emerged as a world leader in fruits & vegetables
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. B

*India has emerged as a world leader in production of mangoes, bananas, coconuts, cashew nuts and a number of spices

* India is the second largest producer of fruits & vegetables

36. Consider the statements & Identify the incorrect statement
A. IT can play a critical role in achieving sustainable development and food security
B. Organic agriculture is a whole system of farming that restores, maintains and enhances the ecological balance
C. Many retail chains and supermarkets which are accorded with Red status to sell organic food.
D. Organic agriculture substitute costlier agricultural inputs with locally produced organic inputs

Ans. C

*Green status

* Organic agriculture also generates income through exports as the demand for organically grown crops is very high due to high nutritional value

37. Read the following statements carefully and choose the correct alternatives given below:
Statement 1 – Popularising organic farming requires awareness and willingness on the part of farmers to adapt to new technology
Statement 2 – Adequate infrastructure and the problem of marketing the products are major concerns in organic marketing
Alternatives:
A. Both the statements are true.
B. Both the statements are false.
C. Statement 1 is true and Statement 2 is false
D. Statement 2 is true and Statement 1 is false

Ans. A

*Organic produce have a shorter shelf life than sprayed produce

*Choice in production of off-season crops is quite limited in organic farming

38. Read the following statements -Assertion (A) and Reason(R), Choose one of the correct alternatives given below:
Assertion (A): There is a greater need today to make rural areas more vibrant through diversification into dairying, poultry, fisheries, vegetables and fruits etc.
Reason(R): Infrastructure elements like credit and marketing, farmer-friendly agricultural policies and a constant appraisal and dialogue between farmers’ groups and state agricultural departments are essential
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 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.

Ans. B

39. Which animals accounts the largest share in Indian livestock?
A. Sheeps & Goats
B. Cattle & Buffaloes
C. Poultry
D. Pigs

Ans. C

40. Under which scheme MPs need to identify & develop one village from their constituencies?
A. Gramodaya Yojana
B. Gram Vikas Yojana
C. National Mission for Rural Development
D. Saansad Adarsh Gram Yojana

Ans. D

Saansad Adarsh Gram Yojana was launched in 2014 under this scheme MPs need to identify & develop one village from their constituencies.

41. Which one is not a source of non-institutional rural credit?
A. Friends
B. Relatives
C. Money Lenders
D. SHGs

Ans. D

Non-institutional sources are those which are not attached to any formal institution, include friends, money lenders, landlords & relatives

42. Which revolution led to the rapid growth in the production of horticulture crops like fruits & vegetables also made India a world leader in production of mangoes, bananas , cashew , coconut & spices?
A. Golden Revolution
B. Green Revolution
C. Grey Revolution
D. Yellow revolution

Ans. A

43. Kisan Mehta of __________(an NGO) first suggested that cotton, the biggest user of chemical pesticides, could be grown organically

Ans. Prakruti

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