Free Rural Development 03 Practice Test - 12th Grade - Commerce
Question 1
Short-term loans are required for purchasing machinery, constructing fences and digging wells. Such loans are generally stretched over a period of 12 months to 3 years.
True
False
SOLUTION
Solution : B
False. Medium-term loans are required for purchasing machinery, constructing fences and digging wells. Such loans are generally stretched over a period of 12 months to 5 years.
Question 2
Which of the following is wrong regarding NABARD?
It helps farmers directly
It perform all the functions of RBI with regards to agriculture credit
It helps the flow of credit through co-operative banks, RRB’s etc
Maintain a research and development fund to promote research in agriculture
SOLUTION
Solution : A
NABARD does not provide any loan to individuals. It only refinances banks that give loan under specific categories in agriculture including dairy animal rearing.
Question 3
Which scheme provides adequate and timely support from the banking system to the farmers for their cultivation needs in a flexible manner
KMC
KMM
KBC
KCC
SOLUTION
Solution : D
The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks. Its objective is to meet the comprehensive credit requirements of the agriculture sector by giving financial support to farmers. Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks. The scheme has short-term credit limits for crops and term loans.
Question 4
Rural population needs a long-term loan for
For buying fertilizers
For making minor improvements on land
To buy seeds
For buying agricultural machinery
SOLUTION
Solution : D
Rural population needs long term loan for buying agricultural machinery.
Question 5
Microcredit programme refers to
Credit provision made by small farmers
Credit provisions made by self help group to its members
Credit provision made by large farmers
None
SOLUTION
Solution : B
Microcredit is used to describe small loans granted to low income individuals that are excluded from the traditional banking system. It is part of the larger microfinance industry, which provides not only credit, but also savings, insurance, and other basic financial services to the poor.
Question 6
What is the 'collateral' demand that lenders make against loans?
Vehicle of the borrower
Building of the borrower
Both (a) and (b)
None of these
SOLUTION
Solution : C
Lenders demand any assets of the borrower as a collateral security.
Question 7
In a SHG, most of the decisions regarding savings and loan activities are taken by:
bank
group members
non-government organisation
government
SOLUTION
Solution : B
SHGs are registered/unregistered entities which usually has a membership of 15 to 20 members from very low income families, usually women. They mobilize savings from members and uses the pooled funds to give loans to the needy members.
Question 8
What is the name of the success story that met the credit needs of the poor, at reasonable rates, in Bangladesh?
Grameen Bank
Reserve Bank
Cooperative Bank
None of these
SOLUTION
Solution : A
The Grameen Bank is a microfinance organisation and community development bank founded in Bangladesh. It makes small loans (known as microcredit or "grameencredit") to the impoverished without requiring collateral.
Question 9
Which of the following highlights the benefits of organic farming?
Environment Friendly
Healthier and tastier food
Inexpensive process
All of the above
SOLUTION
Solution : A
Organic farming is environment friendly.
Question 10
Organic produce has a
Short life
Medium life
Long life
Very short life
SOLUTION
Solution : A
Organic produce has a short life.