MCQs on Rural Credit

Rural credit is a tool that provides a sustainable livelihood for many rural Indians who don’t have a sustainable livelihood. There are various sources of credit that are economical and was set up to facilitate the whole credit needs of small and me­dium farmers. These rural credit opportunities allowed farmers to take different credit services, facilities, and loans to meet their production requirements.

Given below are important MCQs on rural credit to analyze your understanding of the topic. The answers are also given for your reference.

Rural Credit MCQs

Question 1

A small loan amount given to low-income household or group is known as.

A) Cash credit

B) Micro credit

C) Rural credit

D) Simple credit

Answer C

Question 2

Which microfinance institution is known as the Universal Bank?

A) Bandhan Financial Services Private Ltd

B) Arohan Financial Services Private Ltd

C) Disha Microfinance Private Ltd

D) SKS Microfinance Private Ltd

Answer A

Question 3

The formal sources of credit do not comprise of

A) Cooperatives

B) Employers

C) Banks

D) None of the above

Answer B

Question 4

The informal sector loans incorporate

A) State Bank of India

B) Moneylenders

C) NABARD

D) (A) and (B)

Answer B

Question 5

What option block the poor to get bank loans?

A) Absence of collateral

B) High rates of interest

C) Complexity of procedure

D) None of the above

Answer A

Question 6

In the self-help group, the loan and saving decisions are taken by

A) Government

B) Non-government organisation

C) Bank

D) Group members

Answer D

Question 7

In India, which organizations take care of the agriculture and rural development credits needs?

A) IDBI

B) NABARD

C) ICAR

D) FCI

Answer B

Question 8

In India, which organizations take care of the agriculture and rural development credits needs?

A) IDBI

B) NABARD

C) ICAR

D) FCI

Answer B

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