Tag: rural credit

Questions Related to rural credit

Apex bank for agricultural credit is _______.

  1. NABARD

  2. RBI

  3. SBI

  4. RRB


Correct Option: A

Short-term funds are provided for a period of __________.

  1. 12 months

  2. 8 months

  3. 15 months

  4. 18 months


Correct Option: C

What is unproductive credit?

  1. Finance used to purchase seeds, fertilisers, pesticides and related agricultural tools.

  2. Credit taken for the purpose of permanently enhancing the productivity of land.

  3. Credit that can be repaid using increased income generated from productive use of finance.

  4. Credit required to meet consumption expenditures for social and religious purposes.


Correct Option: D
Explanation:
Credit required to meet consumption expenditures for social and religious purposes is known as unproductive credit. Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.
In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.

What are the traditional sources of agricultural credit termed as?

  1. Institutional sources

  2. Non-institutional sources

  3. Formal sources

  4. None of the above


Correct Option: B
Explanation:

The traditional sources of agricultural credit termed as non-institutional sources.In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.

Agricultural credit can be categorised on the basis of __________.

  1. purpose of credit

  2. objective of credit provider

  3. time period of credit

  4. both 'a and c'


Correct Option: D
Explanation:
Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.
In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.

Credit available for a period of 15 months to 5 years is termed as __________.

  1. long-term credit

  2. short-term credit

  3. medium-term creit

  4. both 'b and c'


Correct Option: C
Explanation:

Credit available for a period of 15 months to 5 years is termed as medium term credit.In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.

What is productive credit?

  1. Finance used to purchase seeds, fertilisers, pesticides and related agricultural tools.

  2. Credit taken for the purpose of permanently enhancing the productivity of land.

  3. Credit which does not contribute to production.

  4. Both 'a and b'


Correct Option: D
Explanation:

Finance used to purchase seeds, fertilizers, pesticides and related agricultural tools and credit taken for the purpose of permanently enhancing the productivity of land are known as productive credit.

In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.

In March, 2014 there were over _______ 'primary agricultural credit societies' (PACS) covering 98% of villages in India.

  1. 93,000

  2. 82,000

  3. 56,000

  4. 98,000


Correct Option: A
Explanation:

In March, 2014 there were over 93000 'primary agricultural credit societies' (PACS) covering 98% of villages in India.
PACS provides institutional credit which assists rural households involved in agricultural activities.Credit helps to increase the productive capacity of the economy.

Which co-operative institutions provide credit in the agricultural sector?

  1. Cooperative banks

  2. Land Development Banks

  3. Both 'a and b'

  4. Neither a nor b


Correct Option: C
Explanation:
Co-operative institutions which provide credit in the agricultural sector are :-
a) cooperative banks
b) Land Development Banks Institutional credit assists rural households involved in agricultural activities. The government exclusively depended on development of cooperatives as an institutional source of rural credit till 1970.

Non-institutional sources of rural credit still performs a vital role in providing credit for ___________ purposes.

  1. productive

  2. unproductive

  3. industrial

  4. none of the above


Correct Option: B
Explanation:

Non-institutional sources of rural credit still performs a vital role in providing credit for unproductive purposes.The traditional sources of agricultural credit termed as non-institutional sources.Non-institutional credit providers charge exorbitant interest rates ranging between 24% to 50%.In order to fulfill the financial requirements of the agricultural sector in rural India, appropriate and specialized credit agencies are needed. Credit helped to increase the productive capacity.Agricultural credit can be categorized on the basis of both purpose of credit and objective of credit provider.