MCQs on Rural Development

Rural Development comprises a series of measures that any government undertakes, with the aim to enhance the overall living standards and the quality of life for the population that is living in the rural and remote areas. Governments around the world need to take special care to invest in the areas of public health, employment, education, development of infrastructure, agriculture, etc., so that they can work towards increasing the prosperity levels of the rural population and leave a positive impact on the economy.

We have come up with some basic multiple-choice questions on rural development with the objective of ensuring that the students get a holistic view of the topic:

  1. Which of the following statements about rural development in India is true?
    1. The Government of India implemented poverty alleviation schemes to ensure rural development
    2. The Government of India implemented land reforms to ensure rural development
    3. The Government of India focussed on human capital formation to ensure rural development
    4. All of the above
  2. Answer: d

  3. Which of the following statements about the growth rate of agriculture is true?
    1. The growth rate of agriculture during 2007-12 was 3.2% per annum
    2. The growth rate of agriculture during 2007-12 was 1.8% per annum
    3. The growth rate of agriculture during 2007-12 was 2.2% per annum
    4. The growth rate of agriculture during 2007-12 was 1.2% per annum
  4. Answer: a

  5. Which of the following statements about the Golden Revolution is correct?
    1. The period between 1991-2000 is called the ‘Golden Revolution Period’
    2. The period between 1991-2003 is called the ‘Golden Revolution Period’
    3. The period between 1991-2001 is called the ‘Golden Revolution Period’
    4. The period between 1991-2004 is called the ‘Golden Revolution Period’
  6. Answer: b

  7. Which of the following statements is correct?
    1. The supermarkets and retail chains in India that sell organic food are accorded the green status
    2. The supermarkets and retail chains in India that sell organic food are accorded the eco status
    3. The supermarkets and retail chains in India that sell organic food are accorded the nutritional status
    4. The supermarkets and retail chains in India that sell organic food are accorded the sustainable status
  8. Answer: a

  9. Which of the following statements is correct?
    1. The action plan in terms of rural development mainly focuses on lingering challenges
    2. The action plan in terms of rural development mainly focuses on emerging challenges
    3. Both a and b are incorrect
    4. Both a and b are correct
  10. Answer: c

  11. Which of the following statements reflects the reason behind the requirement of rural credit in the farming sector?
    1. Rural credit is required in the farming sector because of small landholdings
    2. Rural credit is required in the farming sector because of the need for further investment
    3. Rural credit is required in the farming sector because most of the agricultural produce is for the purpose of self-consumption
    4. All of the above
  12. Answer: d

  13. Which of the following statements about short-term credit is true?
    1. The duration of short-term credit is six to twelve months
    2. The duration of short-term credit is six to nine months
    3. The duration of short-term credit is three to nine months
    4. The duration of short-term credit is three to six months
  14. Answer: a

  15. Which of the following statements is correct?
    1. The Government of India adopted the social banking approach in 1969 to meet the needs of rural credit
    2. The Government of India adopted the multi-agency approach in 1969 to meet the needs of rural credit
    3. Both a and b are correct
    4. Both a and b are incorrect
  16. Answer: c

  17. Which of the following statements about medium-term credit is true?
    1. The duration of medium-term credit is twelve months to four years
    2. The duration of medium-term credit is twelve months to three years
    3. The duration of medium-term credit is twelve months to five years
    4. The duration of medium-term credit is twelve months to two years
  18. Answer: c

  19. Which of the following is the main purpose of medium-term credit for rural farmers?
    1. The main purpose of medium-term credit is for the construction of fences for farmlands
    2. The main purpose of medium-term credit is for purchasing tractor or land
    3. The main purpose of medium-term credit is for purchasing farm inputs like fertilisers, seeds, etc.
    4. All of the above
  20. Answer: a

  21. Which of the following statements about the problems of rural banking in India is true?
    1. The main problem faced in rural banking is mounting overdue
    2. The main problem faced in rural banking is an insufficient amount of credit
    3. The main problem faced in rural banking is an inadequate amount of sanctions
    4. All of the above
  22. Answer: d

  23. Which of the following agencies provide help related to Microfinance?
    1. State Bank of India
    2. Regional rural banks
    3. National Bank for Agriculture and Rural Development (NABARD)
    4. Self-help groups
  24. Answer: d

  25. Which of the following is the main reason behind fixing a minimum support price for crops?
    1. To safeguard the interests of consumers
    2. To safeguard the interests of farmers
    3. For the economic benefit of the government
    4. None of the above
  26. Answer: b

  27. Which of the following is true about distress sales?
    1. It refers to the farmers selling off their rotten crops
    2. It refers to the farmers selling off their crops at very low prices
    3. It refers to the farmers selling off their crops through commissioning agents
    4. None of the above
  28. Answer: b

  29. The white revolution is associated with ______.
    1. Crops
    2. Dairy
    3. Animal husbandry
    4. None of the above
  30. Answer: b

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