Sample MCQs with Explanations
Q1. What is the primary objective of rural credit in India?
A) To promote urbanization
B) To support agricultural and rural activities
C) To increase imports
D) To reduce inflation
Answer: B) To support agricultural and rural activities
Explanation: Rural credit provides financial support to farmers and rural entrepreneurs to boost agricultural productivity and rural income.
Q2. Which institution is known as the apex bank for rural credit in India?
A) RBI
B) NABARD
C) SBI
D) SIDBI
Answer: B) NABARD
Explanation: NABARD (National Bank for Agriculture and Rural Development) oversees and supports the rural credit system in India.
Q3. What is the main function of cooperative societies in rural areas?
A) Industrial production
B) Providing credit and marketing support to farmers
C) Regulating stock exchanges
D) Managing imports and exports
Answer: B) Providing credit and marketing support to farmers
Explanation: Cooperatives help farmers access credit, inputs, and fair prices for their produce, fostering rural development.
Q4. Which type of cooperative provides short-term agricultural loans to farmers?
A) Housing cooperatives
B) Credit cooperatives
C) Marketing cooperatives
D) Dairy cooperatives
Answer: B) Credit cooperatives
Explanation: Credit cooperatives offer short-term and medium-term credit to farmers to meet agricultural and seasonal financial needs.
Q5. Rural credit in India can be classified as:
A) Institutional and non-institutional sources
B) Domestic and foreign sources
C) Public and private sector sources
D) None of the above
Answer: A) Institutional and non-institutional sources
Explanation: Rural credit sources are broadly divided into institutional (banks, cooperatives) and non-institutional (moneylenders, traders).
Relevant Titles
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CBSE Class 12 Economics MCQs on Role of Credit and Cooperatives in Rural Development
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NCERT-Based Class 12 Economics Quiz – Credit and Cooperatives in Rural India
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Class 12 Economics Online Practice Test: Credit and Cooperatives Role
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CBSE Board 2025 Practice Test – Rural Credit and Cooperative System MCQs
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Free MCQs on Role of Credit and Cooperatives for Class 12 Economics
Introduction Paragraph
Introduction:
Get ready for your CBSE Class 12 Economics Board Exam 2025 with this online MCQ practice test on “Role of Credit and Cooperatives in Rural Development.” This crucial topic from Part B: Indian Economic Development focuses on how rural credit institutions and cooperative societies contribute to the progress of India’s rural economy.
The NCERT-based Class 12 Economics MCQs are designed to strengthen conceptual clarity and test understanding of key topics like institutional credit, NABARD, rural banks, cooperative societies, and microfinance. These concepts form the backbone of rural economic empowerment and inclusive growth.
Each multiple-choice question includes a detailed explanation to help students grasp the importance of credit and cooperatives in promoting agricultural productivity, employment, and self-reliance in rural India. Perfect for self-assessment and last-minute revision, this CBSE Class 12 Economics practice test ensures exam-oriented preparation aligned with the latest syllabus.
Boost your confidence and accuracy with these NCERT-based MCQs tailored for board exam success.
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