Multiple Choice Questions and Answers (MCQ) on Indian Agriculture : Markets, Irrigation and Finance for Civil Services
Question 1 : Lead Bank Scheme is designed to
a) Have more concentrated effort of a bank in a particular district
b) Control the activities of non-banking financial institutions
c) Help the weaker sections in a particular district
d) Regulate the use of credit
Answer : a
Question 2 : Virtual water trade is being looked at by experts as a solution to the world’s water crisis. What does virtual water imply ?
a) Volume of heavy water required to replace ordinary water
b) Volume of water required to produce a commodity
c) Volume of water saved by using rainwater harvesting
d) Volume of water utilized by an effective flood control
Answer : b
Question 3 : In India, NABARD does not provide refinance to
a) Scheduled commercial banks
b) Regional rural banks
c) Export-import bank
d) State land development banks
Answer : c
Question 4 : The Rural Infrastructure Development Fund (RIDF) has been created under
a) Reserve Bank of India
b) NABARD
c) Ministry of Agriculture
d) Ministry of Rural Development
Answer : b
Question 5 : What is e-NAM ?
a) It is a pan-India electronic trading portal for agricultural commodities launched by the Ministry of Agriculture and Farmers’ Welfare.
b) It is an application to know the prices of various commodities to safeguard interest of consumers.
c) It is a website launched by the Ministry of Commerce to showcase the handicrafts in order to promote financial interest of traditional commodities.
d) None of the above
Answer : a
Question 6 : Consider the following statements regarding primary agricultural credit societies :
1) These societies are organized at the village level and cover more than 90% village in India.
2) These societies grant credit to members to purchase agricultural inputs.
3) These societies are further affiliated to district central cooperative banks.
Select the correct answer using the codes given below :
a) 1 and 2 only
b) 2 only
c) 1 and 3 3 only
d) 1, 2, and 3
Answer : d
Question 7 :Consider the following statements about trend of rural credit in India :
1) The relative share of credit from non-institutional sources has reduced since independence.
2) Even at present, more than 50% credit in rural areas is accessible through non-institutional sources.
3) The indigenous money lenders are the most important source of credit in rural areas among all sources on non-institutional credit.
Select the correct answer using the codes given below :
a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1, 2, and 3
Answer : c
Question 8 : Consider the following statements regarding the Kisan Credit Card Scheme :
1) The Kisan Credit Card Scheme was introduced in 1998-99 to facilitate short-term credit to farmers.
2) The scheme is implemented through commercial and cooperative banks.
3) NABARD acts as a refinancing institution for the scheme.
Select the correct answer using the codes given below :
a) 1 and 2 only
b) 2 only
c) 1 and 3 only
d) 1, 2, and 3
Answer : d
Question 9 : In the context of NABARD, consider the following statements :
1) NABARD was established with the objective of coordinating the activities of organizations engaged in the area of rural credit.
2) Before NABARD, the function of NABARD were performed by the State Bank of India .
3) NABARD undertakes both direct finance and refinance activities .
Select the correct answer using the codes given below :
a) 1 and 2 only
b) 1 only
c) 1 and 3 only
d) 1, 2, and 3
Answer : b
Question 10 : Which of the following bank’s functioning in rural India is subject to inspection by NABARD ?
1) Commercial banks
2) State cooperative banks
3) District central cooperative banks
4) Regional rural banks
Select the correct answer using the codes given below :
a) 2 and 3 only
b) 1, 2, and 3
c) 2, 3, and 4
d) 1, 3, and 4
Answer : c