Important Questions Class 12 Economics Chapter 6 – Rural Development

Important Questions with Answers for CBSE Class 12 Economics Chapter 6 – Rural Development, which is outlined by expert Economics teachers from the latest version of CBSE (NCERT) books

CBSE Class 12 Economic Chapter-6 Important Questions

Question 1

In brief, explain rural development.


Rural development refers to the implementation of the plan for the social and economic upliftment of rural areas.

Question 2

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


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

Question 3

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


(a) National Bank of Agriculture and Rural Development.

Question 4

Non-institutional sources of agriculture credit are?

(a) Commercial Bank


(c) Regional Bank

(d) Traders


(d) Traders.

Question 5

Why is a short term loan required by the rural population?

(a) For buying cattle

(b) For buying tractors

(c) For meeting consumption expenditure

(d) For paying old debt


(c) For meeting consumption expenditure.

Question 6

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


(c) Introduced in 1982.

Question 7

Below mentioned are the major producers of the marine product except

(a) Gujarat

(b) Punjab

(c) Maharashtra

(d) Kerala


(b) Punjab.

Question 8

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


The two instruments that help in safeguarding the interest of farmers are fixation of minimum support price (MSP) and Buffer stock.

Question 9

Rural population require long-term loans

(a) To buy fertilizers

(b) To buy agricultural machinery

(c) To buy seeds

(d) To make minor improvements on land


(b) To buy agricultural machinery

Question 10

What is a microcredit programme?


Microcredit programmes refer to the credit provision or the process of offering small loans made by the self-help groups to its members for assisting in self employment.

Question 11

What is agriculture marketing?


Agriculture marketing is one of the marketing methods where the agricultural products are distributed with the help of wholesalers or retailers so that it reaches the end-users.

Question 12

What is horticulture?


Horticulture is a section of crop agriculture that incorporates forestry and agronomy. In a traditional way, horticulture markets garden crops like nuts, vegetables, fruits, spices and herbs, ornamental plants and beverage crops, etc.

Question 13

How does horticulture work?


Horticulturists perform research in plant propagation, crop production, plant breeding, genetic engineering, plant biochemistry and plant physiology. They help in improving the way we use plants, for food and other human desires, as well as restoring the environment and personal aesthetics.

Question 14

Explain TANWA.


The word “TANWA” refers to Tamil Nadu Women in Agriculture. This project was initiated with the aim of encouraging and giving training to the Tamil Nadu women in the latest agriculture technique.

It involved women to actively participate in agricultural activities and raise the family income. The women with their savings would later promote small household activities like doll making, soap manufacturing, mushroom cultivation or any other income generating activities.

Question 15

Define the adoption of a village.


The adoption of a village is also known as Sansad Adarsh Gram Yojana (SAGY). It is a development programme focusing on the social and cultural development of the rural people.

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