CBSE Class 11 Economics Rural Development Assignment

MCQ Questions for NCERT Class 11 Economics Rural Development

Question: Which of the following is an institutional source of rural credit?
(A) Moneylenders
(B) Regional Rural Banks
(C) Traders
(D) Landlords

Answer: B

Question: What was the growth rate of agricultural output during 2007-12?
(A) 32% per annum
(B) 6% per annum
(C) 1.5% per annum
(D) 5% per annum

Answer: A

Question: Which among the following is an initiative taken for the development of rural India?
(A) Human Capital Formation
(B) Land Reforms
(C) Poverty Alleviation
(D) All of these

Answer: D

Question: When was the National Bank for Agricultural and Rural Development set up?
(A) 1962
(B) 1972
(C) 1982
(D) 1992

Answer:  C

Question: 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

Answer: A 

Question: Which among the following is a process that involves the assembling, storage, processing,transportation, packaging, grading, and distribution of different agricultural commodities acrossthe country?
(A) Agricultural Management
(B) Agricultural Banking
(C) Agricultural Diversification
(D) Agricultural Marketing

Answer: D

Question: What is the name of the vegetable and fruit market in Andhra Pradesh?
(A) Apni Mandi
(B) Hadapsar Mandi
(C) Rythu Bazars
(D) Uzhavar Sandies

Answer: C

Question: Blue revolution is associated with
(A) Indigo cultivation
(B) Poultry Farming
(C) Fisheries
(D) Availability of drinking water

Answer: C 

Question: 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

Answer: D

Question: 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

Answer: B

Question: 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

Answer: A

Question: Name the state which is held as a success story in the efficient implementation of milk cooperatives.
(A) Maharashtra
(B) Jammu and Kashmir
(C) Gujarat
(D) Andhra Pradesh

Answer: C 

Question: The problems faced in rural banking are
(A) Insufficient rural credit
(B) Growing overdue
(C) Inadequate amount of sanction
(D) All of these

Answer : D

 

Question: The institutional aource of credit whose area of operation is the one where banking facilities and cooperatives are absent and which operate at the district level is:
(A) Regional rural bank
(B) Commercial bank
(C) Self-help group
(D) NABARD

Answer : A

Question: The sector providing alternate livelihood options to 70 million small and marginal farmers is:
(A) Livestock
(B) Agro-processing
(C) Apni Mandi
(D) Fisheries

Answer : A

Question: AMUL stands for :
(A) Anand Multiple Union Ltd.
(B) Agriculture and Milk Union Ltd.
(C) Anand Mil Union Ltd.
(D) Anand Manufacturing Union Ltd.

Answer : C

Question: Growth in rural marketing relates to
(A) Provision of physical infrastructure
(B) Regulation of markets
(C) Cooperative farming
(D) All of these

Answer : D

Question: Production of a diverse variety of crops rather than one specialised crop is called:
(A) Diversification of production activity
(B) Diversification of crop production
(C) Diversification of employment
(D) All the above

Answer : B

Question: Credit taken for a period of 15 years is
(A) Short term credit
(B) Medium term credit
(C) Long term credit
(D) All of these

Answer : C

Question: Why is the minimum support price fixed by the government ?
(A) For the government's benefit
(B) To safeguard the interest of farmers
(C) To save the interest of consumers
(D) None of these

Answer: B

ASSERTION AND REASON QUESTIONS

Question: Assertion:.Diversification of crops shifted from single cropping system to multiple’’cropping
Reason : It increases the risk of the market arised due to price fluctuation .
(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) s false but Reason ( R ) is true

Answer : C

Question: Assertion : Farmers were using primitive technology of production .
Reason : Farmers were unaware of the technology and were poor.
(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) s false but Reason ( R ) is true

Answer : A

Question: Assertion : Eong term credits are required for purchasing machinery and constructing fences etc.
Reason : These are taken for 12 months to 5 years.
(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) s false but Reason ( R ) is true

Answer : C

Question: Assertion : NABARD was set up to give loans to farmers.
Reason : It is an Apex body to coordinate all institutions involved in the rural financing system.
(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) s false but Reason ( R ) is true

Answer : B 

Question: Assertion : Rural economic development is essential for Indian Economic development .
Reason : Rural development creates opportunities in rural areas for education .
(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) s false but Reason ( R ) is true

Answer: A

Question: Assertion : Role of Information Technology was essential in the Rural sector.
Reason : Farmers were interested in learning computers
(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) s false but Reason ( R ) is true

Answer : B

Case Study Questions  Rural Development Class 11 Economics

The policy intervening rural credit has always been credit driven. This is even more pronounced in the Recent Interventions made by the state in the package announced for distressed farmers in doubling agricultural credit , providing subvention and putting an upper cap on interest rates for agricultural loans. Looking specifically at rural financial markets using some primary data,we argue that it is necessary to understand the Rural Financial markets from the demand side.

Question: What are the main institutional sources of rural credit in India? 

Answer: Cooperative credit societies , SBI,Commercial Banks, Regional rural banks etc.

Question: Mention any two sources of rural credit in India . 

Answer: Institutional and non-institutional

Question: Discuss the role of cooperatives in Rural Credit 

Answer: Timely and rapid flow of credit,elimination of money lenders, provision of adequate credit.

Question: What are suggestive measures to overcome the problems of the marketing system in India. 

Answer: MSP Policy, Regulated markets, Subsidised transport , etc.

The government is fast tracking the integration of e- National agricultural market (e NAM) with farmer producer organizations (FPO) and warehouses , which have been declared as market yards to provide end-to-end connectivity to farmers.
It will then connect these FPOs and warehouses with the transport aggregator mobile App KISAN RATH for seamless supply linkages to integrate and intra state buyers. The app brings together 5 lakh trucks and 20,000 tractors on a mobile platform for transporting farm produce to markets from Farm gate.

Question: What are the arrangements of agricultural marketing in India? 

Answer: Govt. has organised mandis in the local areas and also now the latest farmer’s bill is providing new opportunities to the farmers.

Question: Define Agricultural marketing . 

Answer: It includes gathering the produce after harvesting , processing ,grading, packaging for future sale.

Question: Highlight the problem of Distress sale in India. 

Answer: When farmers are compelled to sell their produce immediately after the harvest, no matter how low the market price is. 

BILL ON CONTRACT FARMING
The farmers ( Empowerment and Protection ) Agreement of Price Assurance and Farm Services Bill, 2020/Provisions:
● Farmers can enter into a contract with agribusiness firms ,processors , Wholesalers ,Exporters or large retailers for sale of future farming produce at a pre-agreed price .
● Marginal and small farmers , with land less than five hectares, to gain via aggregation and contract ( Marginal and small farmers account for 86% of total farmers in Indi(A).
● To transfer the risk of market unpredictability from farmers to sponsors .
● To Enable farmers to access modern tech and get better inputs.
● To reduce the cost of marketing and boost farmer’s income .
● Farmers can engage in direct marketing by eliminating intermediaries for full price realization . Effective dispute resolution mechanism with redressal timelines.

Question: How will you relate the above with the general reforms in Agricultural marketing ? 

Answer: It can be related to cooperative marketing societies . Removal of the role ofintermediaries .

Question: Will the above give substantial rise in Acreage ( area under cultivation) 

Answer: Farmers will get the direct benefits of production ,so more land will be used for the same.

Question: How will it affect substantial farming? 

Answer: It will motivate the farmers to commercialize their produce for more benefits or profits.

 

 

• Rural development is an action plan for the economic and social upliftment of rural areas.

• Key issues in rural development.
(i) A robust system of rural credit.
(ii) A system of marketing that ensures remunarative price to the farmer for his produce.
(iii) Diversification of crops that reduces risks of production and induces commercialisation of forming.

(iv) Diversification of production activity with a view to find alternative means of sustainable living other than crop- cultivation.

(v) Promotion of organic farming with a view to make crop cultivation environmental friendly as well as a sustainable process over a long period of time.

• Rural credit means credit for the farming families. Farmers require credit for various purposes.

• Sources of rural credit in India -

1. Non- institutional sources are money lenders, traders and commission agents, landlord, relatives and friends.

2. Institutional sources are as follows -
(i) Co-operative credit societies.
(ii) Commercial Banks
(iii) Regional banks
(iv) NABARD (National Bank for Agriculture and Rural Development.)

• Agricultural marketing includes - gathering the produce after harvesting, processing the produce, grading the produce according to its quality, packaging the produce according to preferences of buyers, storing the produce for future sale and selling the produce when price lucrative.

• Defects of agricultural marketing -
(i) Inadequate ware houses
(ii) Multiplicity of middlemen
(iii) Malpractices in unregulated markets.
(iv) Lack of Adequate finance
(v) Inadiquate means of transport and communication.

• Measures adopted by the government to improve marketing system -
(i) Regulated markets.
(ii) Co-operative agricultural marketing societies
(iii) Provision of warehousing facilities
(iv) Subsidised transport.
(v) Dissimination of marketing imformation.
(vi) Buffer stocks and PDS (Public Distribution System)

• Diversification in agriculture activities- It has two aspects.

1. Diversification of crop production refers to a system of multiple cropping rather than mono cropping. It has two advantages :
(i) It lowers the risk of farming on account of failure of monsoon
(ii) It enhances the scope for commercialisation of farming.

2. Diversification of productive activities implies a shift from cropfarming to non-farming areas of employment. Non-farm areas of employment include -
(i) Animal husbandry
(ii) Fisheries
(iii) Horticulture
(iv) Cottage and household industry
(v) Information technology - every village a knowledge centre.

• Organic farming is a system of farming that maintains, exhances and restores the ecological balance. It helps in sustainable, development in the agricultural sector, In organic forming, farmers use organic manuros, bio-fertilizers and organic pesticides.

• Advantages of organic farming -
(i) Inexpansive process
(ii) Generates income
(iii) Healthier and tastier food.
(iv) Solves unemployment problem.
(v) Envirnment friendly.

• Organic farming involves labour - intensive process of production of labour so India has comparative advantage in organic farming.

ONE MARK QUESTION

1. What is rural development?

2. What is meant by agricultural diversification?

3. What is TANWA?

4. What is ‘Golden Revolution’?

5. Write two instruments to safequard the interests of farmers by the government.

6. What is co-operative marketing?

7. What do you mean by ‘Operation Flood’?

8. What do you mean by micro credit programme.

9. Define non-institutional sources of agricultural credit.

10. What is agricultural marketing?

11. Mention two limitations of rural banking.

12. Name two institutional sources of agricultural credit.

13. Which state has an efficient implimentation of milk co-operatives?

14. When was NABARD established?

15. What is sustainable development?

3/4 MARKS QUESTIONS

1. Give two basic objectives of the co-operative credit societies.

2. Explain the importance of self help groups (SHG’S) in rural areas.

3. Why is state intervention necessary to regulate the activities of private traders in the rural agricultural sector?

4. How has horticulture encouraged Indian rural development?

5. Is it possible to develop imformation technology as an alternatelivdihood option? Give reasons.

6. Why does indian farmer need credit?

7. Why were alternate marketing chennels set up?

8. What are the advantages of organic farming?

9. Why has rural banking not able to give adequate credit tofarmers?

10. What do you understand by -
(i) MSP (Minimum selling price)
(ii) Buffer stock.
(iii) PDS (Public distribution system)
(iv) SHG (Self help group)

6 MARKS QUESTIONS

1. What do you mean by agricultural diversifreation? Why is itrequired?

2. Mention advantages and limitations of organic farming.

3. What steps have been initiated by the government to improveagricultural market system in India ?

4. What are the functions and weaknesses of co-operative creditsocieties?

5. What do you understand by the teem rural development? Whatare the key issues of rural development.

6. Explain how animal husbandry, fisheries and horticulture are asignificant source of sustainable livelihood in rural areas.

7. Explain the types of credit taken by formers for different purposes.
Bring out the significance and implications of non-institutional credit.

ANSWERS OF ONE MARK QUESTIONS

1. Rural development is an action plan for the economic and social upliftment of rural areas.

2. Agricultural Diversification means a major proportion of the increasing labour force in the agricultural sector needs to find alternate employment opportunities in other non-farm sectors.

3. TANWA (Tamil Nadu Women in Agriculture) is a project initiated in Tamil Nadu where rural women find employment in non-farm jobs, as well as they are trained in latest agricultural techniques.

4. The period between 1991-2003 is called ‘Golden Revolution’ because during this period the nanned investment in horticultine became highly productions and the sector emerged as a sustainable livelihood option.

5. Two instruments are fixation of minimum support price (MSP) buffer stock.

6. Co-operative marketing is a measure to ensure a fair price ot farmers . Member farmers sell their surplus to the co-operative society which substitutes collective bargaining in place of individual bargaining and hence provides best advantages to the farmers.

7. From 1966 onwards operation flood is a system whereby all the farmers can pool their milk produce according to different grading (based on quality) and the same is processed and marketed to urban centres through co-operatives.

8. Credit provisions made by self help groups (SHG) to its different members is known as micro credit programme.

9. Non-institutional sources include money lenders, traders, commission agents, landlords, relations and friends

10. Agricultural marketing is a process of marketing in which farm produce are distributed through wholesellers and stockists to ultimate consumers.

11. Two limitations of rural banking are inadequate finance and large amount of overdues and default rate.

12. Two institutional sources of agricultural credit are co-operative credit societies and commercial banks.

13. Gujrat state has the efficient implimentation of milk co-operatives.

14. NABARD (National Bank for Agriculture and Rural Development) was established in 1982

15. Sustainable development is a system of a long- period sustaibable process along with an eco friendly envirnment.