Question 1

Briefly explain the major steps taken by the government to improve agriculture in india.

Accepted Answer

Major steps taken by the government to improve the agriculture system in India are:1. Green revolution played an important role in improving agriculture productivity. New technologies and HYV seeds were used to improve production in the agriculture sector.2. Government fixes the minimum and maximum prices of the products. Minimum support price policy, subsidies on the agriculture inputs were some of the steps taken by the government3. Government established Grameen banks in the rural areas to provide loans at a lower rate of interest and even in some of these schemes without the collateral securities the loans are provided to the farmers.4. Government introduced various initiatives for the farmers from time to time. PMFBY, PKVY, PMKSY PM- Kisan scheme were some of the initiatives taken by the government.

Question 2

How is agricultural diversification helpful for farmers?

Accepted Answer

Agriculture Diversification refers to either a change in cropping pattern or the farmers opting for other non-farming options like poultry farming, animal husbandry, etc. This practice allows farmers to expand the production, which helps generate a higher level of income. Following are the major advantages of crop diversification:1. Increase in income of small farm holdings,2. Less risk for price fluctuation,3. Climatic variability,4. Balancing food demand,5. Increasing the production of quality fodder for livestock animals,6. Beneficial for conserving natural resources, etc.

Question 3

Name three institutional sources of agricultural credit.

Accepted Answer

Three institutional sources of agricultural credit are:Co-operative Credit Societies,Commercial Banks, andRegional Rural Banks.

Question 4

Why do farmers need credit?

Accepted Answer

Farmers need credit due to long time gap between crop sowing and realisation of income, farmers need credit.

Question 5

Which one of the following represents priority sector lending by commercial banks in India?

Accepted Answer

The priority sector lending by commercial banks in India is to agriculture, small - scale industries and the weaker sector of the population. Targeted financing for the areas in an economy which are lagging behind the normal pace of development is called priority sector lending.

Question 6

Which of the following combination is correct?

Accepted Answer

National Bank for Agriculture and Rural Development (NABARD) is an Apex Development Financial Institution in India. The Bank has been entrusted with &#34;matters concerning Policy Planning and Operations in the field of credit for Agriculture and other Economic activities in Rural areas in India&#34;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.

Question 7

NABARD was established on the recommendation of ___________.

Accepted Answer

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.

Question 8

Which of the following organizations looks after the credit needs of agriculture and rural development in India?

Accepted Answer

NABARD stands for National Bank For Agriculture And Rural Development. This bank deals with matters&#10;concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas in India.&#10;&#10;Its headquarters is located&#10;in Mumbai

Question 9

Land Development Banks form a part of the __________.

Accepted Answer

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Question 10

Why have Self-Help Groups (SHGs) been set up?

Accepted Answer

The Self-Help Groups (SHGs) have been set up to promote thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small installments at reasonable interest rates.

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