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Credit and banking in rural areas - class-XI

Description: credit and banking in rural areas
Number of Questions: 29
Created by:
Tags: rural development rural economics rural development in india credit in the financial system economics social science
Attempted 0/29 Correct 0 Score 0

Which bank takes care of rural agriculture finance?

  1. IDBI

  2. IFC

  3. RBI

  4. NABARD


Correct Option: D

What does the letter 'M' denote in the term 'MFI' as used in financial sector?

  1. Mini

  2. Monetary

  3. Micro

  4. Mega


Correct Option: C
Explanation:

Micro Finance Institution, also known as MFI  is an organization that offers financial services to low income populations especially in rural ares. These organisations are created for the upliftment of poor sectors of the economy.

The Kisan Credit Card (KCC) Scheme was introduced in ___________.

  1. $1990-91$

  2. $1995-96$

  3. $1998-99$

  4. $2000-01$


Correct Option: C

The NABARD (National Bank of Agricultural and Rural Development) is __________.

  1. an apex body to looking into the credit needs of the rural sector

  2. the only body looking after all the credit needs of farmers

  3. the main source of finance for the regional rural banks

  4. all of the above


Correct Option: D
Explanation:

NABARD (National Bank for Agriculture and Rural Development) was set up in 19821892 to function as an apex bank in the area of rural credit. This bank does not directly extend any loans to the rural people. It extends financial assistance to cooperatives and regional rural banks, who in turn make available loans to the farmers.

Which of the following operates at the district level?

  1. State Cooperative Bank

  2. Central Cooperative Bank

  3. Primary Agricultural Credit Society

  4. Reserve Bank of India


Correct Option: B

Land Development Banks form a part of the __________.

  1. Commercial Banks

  2. Industrial Development Bank of India

  3. Food Corporation of India

  4. Cooperative Credit Structure


Correct Option: D

When did NABARD start a programme of linking self-help groups (SHGs) of the rural poor with banks?

  1. $1990$

  2. $1992$

  3. $1995$

  4. $2001$


Correct Option: B

Which of the following combination is correct?

  1. NABARD- Industrial loans

  2. Regional Rural Banks - Agricultural finance

  3. RBI - Long term finance

  4. IDBI - Short term finance


Correct Option: B
Explanation:

National Bank for Agriculture and Rural Development (NABARD) is an Apex Development Financial Institution in India. The Bank has been entrusted with "matters concerning Policy Planning and Operations in the field of credit for Agriculture and other Economic activities in Rural areas in India"


The RBI was established with the aim of being a banker's bank and also the bank for the government. Its task was to promote the economic growth of the country through various frameworks and economic policies of the government.

The main objectives of IDBI are to serve as the apex institution for term finance for industry in India. Its objectives include Co-ordination, regulation and supervision of the working of other financial institutions such as IFCI, ICICI, UTI, LIC, Commercial Banks and SFCs.

Hence only Regional Rural Bank provide agriculture finance.
So, B is the correct option.

The implementation of which of the following programmes is/was based on the concept of Self Help Groups (SHGs)?

  1. National Rural Employment Guarantee Act

  2. Sampoorna Grameen Rozgar Yojna

  3. National Food for work Programme

  4. None of these


Correct Option: C

Which of the following schemes is launched by the Government of India to provide banking services in 73,000 villages in India?

  1. ASHA

  2. Swabhiman

  3. Kutir Jyoti

  4. RAY


Correct Option: B

Which of the following schemes was redesigned and restructured into National Livelihood Mission (NLM)?

  1. National Rural Employment Guarantee Scheme

  2. National Food for Work Programme

  3. Swarnjayanthi Gram Swarozgar Yojana(SGSY)

  4. Jawahar Rozgar Yojana


Correct Option: C

As per the reports published in various journals and newspapers, the ''small borrowers" in rural areas still prefer to take informal route for their credit needs. Which of the following is the "informal route" of credit in the financial sector?

  1. Credit cards

  2. Loan against gold from financial institute

  3. Debit cards

  4. Moneylender


Correct Option: D

Which of the following products launched by most of the banks helps farmers in getting instant credit for various agricultural purposes?

  1. Kisan Credit Card

  2. Personal Loan

  3. Business loan

  4. ATM Card


Correct Option: A

Which of the following Credit Cards is specially designed for the people involved in agricultural activities?

  1. Visa Card

  2. Masters Card

  3. Gold Card

  4. Kisan Credit Card


Correct Option: D

Which of the following rural banks has been named after a river?

  1. Prathma Bank

  2. Thar Anchalic Grameen Bank

  3. Aravali Kshetriya Grameen Bank

  4. Varada Grameen Bank


Correct Option: D

Which of the following organisations/banks has done a commendable work in the field of micro-finance and was awarded Nobel Prize also in the past?

  1. Grameen Bank of Bangladesh

  2. CRY

  3. ASHA

  4. NABARD


Correct Option: A

Which of the following nations is considered the originator of the concept of Micro-Finance?

  1. India

  2. Bangladesh

  3. South Africa

  4. USA


Correct Option: B
Explanation:

The Grameen Bank, which is  the first modern micro- credit institution, was founded in 1983 by Muhammad Yunus from Bangladesh. Yunus began the project in a small town called Jobra, using his own money to give small loans at low-interest rates to the poor in rural areas.

What is NABARD'S primary aim?

  1. To provide term loans to state co-operative

  2. To assist state governments for share capital contribution

  3. To act as refinance institution

  4. All of the above


Correct Option: D

Which of the following is not one of the major functions of the National Bank for Agricultural and Rural Development (NABARD)?

  1. Acting as a regulator for cooperative banks and RRBs.

  2. Extending assistance to the government and others in matters related to rural development

  3. Providing refinance to lending institutions in rural areas

  4. Review of monetary and credit policy


Correct Option: D

As per the news published in various newspapers, loans to MSEs by rural banks will be treated as priority sector loans. What is the full form of MSE?

  1. Multi Service Enterprises

  2. Micro Software Enterprises

  3. Micro and Small Enterprises

  4. Mutual funds and Service Entities


Correct Option: C

Which of the following is one of the major activities of the National Bank for Agriculture and Rural Development (NABARD)?

  1. On-site inspection of Cooperative Banks and Regional Rural Banks (RRBs)

  2. Helping Govt of India in preparing Union Budget and presenting it in the cabinet meeting

  3. Acting as custodian of the foreign exchange reserves of the country

  4. Deciding rate of interest on Savings Bank Accounts in Public Sector Banks


Correct Option: A

The YH Malegam Committee, which submitted its report in 2011, was set up to report on further improvement of functioning of __________.

  1. micro finance institutions

  2. stock exchanges in India

  3. cooperative banks

  4. regional rural banks


Correct Option: A
Explanation:

In view of the developments in the microfinance sector,  the Reserve Bank of India (RBI)  in October, 2010 constituted a sub-committee under Shri Y.H. Malegam, member of the Central Board of Directors of RBI, to study issues and concerns of the Micro Finance Sector.

NABARD is a __________.

  1. subsidiary of the RBI.

  2. co-operative bank

  3. private bank

  4. autonomous public sector institution


Correct Option: D

_________ is the apex bank for agriculture credit.

  1. RBI

  2. SIDBI

  3. NABARD

  4. ICICI


Correct Option: C

NABARD has been set up in __________.

  1. 1982

  2. 1984

  3. 1985

  4. 1986


Correct Option: A

NABARD is a __________.

  1. bank

  2. board

  3. block

  4. department


Correct Option: A

Which of the following is exclusively concerned with the credit needs of all types of agriculture and rural development in India?

  1. RBI

  2. SBI

  3. IBRD

  4. NABARD


Correct Option: D

Match the items of List-I with the items of List-II and select the correct answer using the codes given below the lists.

List-I List-II
(a) Rural Industries Programme (i) Meant for various target groups like Rural youth, Ex-serviceman, women and Scheduled Castes/ Tribes
(b) Mahila Vikas Nidhi Scheme (ii) Aim at ensuring flow of credit to the dis-advantaged sections of the society
(c) Enterpreneur-ship Development Programme (iii) Commercial exploitation of local resources
(d) Micro Credit Scheme (iv) Provides assistance to voluntary organizations for the benefit of women
  1. $(a) - (i), (b) - (iii), (c) - (ii), (d) - (iv)$

  2. $(a) - (ii), (b) - (iv), (c) - (i), (d) - (iii)$

  3. $(a) - (iv), (b) - (ii), (c) - (iii), (d) - (i)$

  4. $(a) - (iii), (b) - (iv), (c) - (i), (d) - (ii)$


Correct Option: D

NABARD was established on the recommendation of ___________.

  1. Public Account Committee

  2. Shivaraman Committee

  3. Narshimhan Committee

  4. None of these


Correct Option: B
Explanation:

NABARD is an apex development financial institution in India,headquarters in Mumbai.

It was established on the recommendations of B Sivaraman Committee on July 12, 1982, to implement the National Bank for Agriculture and Rural Development Act 1981.

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