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MCQ On Agricultural Finance and Cooperation


MCQ on Agricultural Finance and Cooperation

Read MCQ on Agricultural Finance and Cooperation. Topics: Nature and scope, time value of money, agricultural credit, crop insurance: PMFBY, crop insurance: Others, RRB, agricultural cooperation.

TopicAgriculture finance and cooperation
Major subjectAgricultural Economics
TypeMultiple choice objective questions, online mock test, online quiz
Number of questions35

Also read: Agricultural Economics Multiple Choice Questions

Nature and scope

Question 01. Which is most important reason for agricultural finance in India?

(a). Due to capital intensive agricultural technologies.
(b). Due to small land holdings of farmers.
(c). Due to increasing population.
(d). Due to get higher crop production.

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Question 02. Which type of credit agency provide credit in rural areas?

(a). Organised credit agencies.
(b). Unorganised credit agencies.
(c). Both a and b.
(d). None of the above.

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Question 03. Why is AF necessary?

  1. Because farmers economic condition is subject to frequent onslaught of natural disasters.
  2. Because the scope for extensive agriculture in India is limited.
  3. Use of advenced technologies such as drip and shade house.
  4. Consistent need of raw materials.

(a). Only 1 and 2 are true.
(b). Only 2 and 3 are true.
(c). Only 3 and 4 are true.
(d). All are true.

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Question 04. What is the basic difference between AF and other finance?

(a). Farmers are not aware of credit policies and procedures, and so on.
(b). Ownership of land is easy to verify.
(c). Adequate infrastructural facilities are available.
(d). All of the above.

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Question 05. What is the base of the purchasing power of a small farmer?

(a). Intensive farming.
(b). Subsistence farming.
(c). Scientific cultivation.
(d). Marketing knowledge.

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Time value of money

Also read: Macroeconomics MCQ: Multiple Choice Questions

Question 06. Which one of the following is not an aspect of the decision taken by a farm manager over varying horizons of time?

(a). Differences in profitability growing out of time alone.
(b). Differences in the desirability of investments due to risk and uncertainty factor.
(c). Differences in investment and overall income.
(d). None of the above.

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Question 07. Time has a very significant influence on one of the following:

(a). Cost.
(b). Return.
(c). Both a and b.
(d). None of the above.

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Question 08. Why does cash grow over time?

(a). The compounding effect of interest.
(b). Opportunity costs.
(c). Both a and b.
(d). None of the above.

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Question 09. Fill the blank

The interest rate used to discount or compound sums of money should be at least …. the current or market rate of interest

(a). As large as
(b). As small as
(c). Either a or b.
(d). None of the above.

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Question 10. Which is an important variable of determining present and future values of a single payment?

(a). The number of years.
(b). Size of interest rate.
(c). Both a and b.
(d). None of the above.

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Agricultural credit

Also read: Microeconomics MCQ: Multiple Choice Questions

Question 11. Which is true about credit?

(a). It is gaining control over the use of money at the present time in exchange for a promise to repay it at the same time.
(b). It is gaining control over the use of money at the present time in exchange for a promise to repay it at some future time.
(c). It is gaining control over the use of time at the present time in exchange for a promise to repay it at future.
(d). It is gaining control over the use of time at the present time in exchange for a promise to repay it at some future time.

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Question 12. Which one of the following defines investment credit?

(a). Construction of farm structures.
(b). Development of irrigation facilities.
(c). Purchase of farm machineries and implements.
(d). All of the above.

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Question 13. By what name is investment credit also known as?

(a). Purchasing credit.
(b). Money credit.
(c). Both a and b.
(d). Development credit.

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Question 14. Which is not a type of purpose credit?

(a). Production credit.
(b). Marketing credit.
(c). Consumption credit.
(d). Short term credit.

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Question 15. Which is truly matched?

(a). Short term credit: Repayment period is 4-21 months.
(b). Medium term credit: Repayment period is 2-5 years.
(c). Long term credit: Only 5 years.
(d). None of the above.

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Crop insurance: PMFBY

Also read: Farm Management Economics Objective MCQ

Question 16. What is the full form PMFBY?

(a). Pradhan Mantri Fasal Bima Yojana.
(b). Pradhan Mantri Fal Bima Yojana.
(c). Pradhan Mantri First Bima Yojana.
(d). None of the above.

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Question 17. Who sponsors PMFBY?

(a). Central government.
(b). State government.
(c). Gram panchayat.
(d). None of the above.

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Question 18. When was PMFBY launched?

(a). 18 February 2016.
(b). 16 February 2016.
(c). 28 February 2016.
(d). 16 February 2016.

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Question 19. Who launched PMFBY?

(a). Shri Jawaharlal Nehru.
(b). Dr. Manmohan Singh.
(c). Shri Narendra Modi.
(d). Smt. Indira Gandhi.

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Question 20. Which of the following group of crops is not covered by PMFBY?

(a). Oil seeds.
(b). Food crops.
(c). Annual horticultural crops.
(d). None of the above.

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Crop insurance: Others

Also read: MCQ on Agriculture and Economics

Question 21. What is the full form of NIAS?

(a). National Agricultural Insurance Schedule.
(b). National Agroforestry Insurance Scheme.
(c). National Agronomical Insurance Scheme.
(d). National Agricultural Insurance Scheme.

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Question 22. When was the Comprehensive Crop Insurance Scheme introduced in India?

(a). 1975.
(b). 1985.
(c). 1995.
(d). 1965.

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Question 23. Which one of the following is right?

(a). First Individual Approach Scheme: 1972-1978.
(b). Pilot Crop Insurance Scheme (PCIS): 1974-1975. 
(c). Comprehensive Crop Insurance Scheme (CCIS): 1985-2000.
(d). None of the above.

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Question 24. Who introduced weather based crop insurance?

(a). Central government.
(b). State government.
(c). Private sectors.
(d). All of the above.

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Question 25. Who will be the nodal agency for the insurance of vegetable crops?

(a). Department of agriculture.
(b). Department of horticulture.
(c). Department of agroforestry.
(d). Department of forestry.

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RRB

Question 26. What is the main objective of RRB?

(a). To provide finance to small farmers.
(b). To provide finance to marginal farmers.
(c). Both a and b.
(d). To provide finance to big farmers.

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Question 27. Which type of loan is a short term loan by RRB?

(a). Land loan.
(b). Crop loan.
(c). Livestock loan.
(d). Home loan.

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Question 28. Which one of the following bank is in collaboration with RRB?

(a). Punjab National Bank.
(b). HDFC.
(c). State Bank of India.
(d). None of the above.

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Question 29. Who sponsors RRB?

(a). Government of India.
(b). Nationalised banks.
(c). State government.
(d). All of the above.

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Question 30. What is the number of RRB as of 2020?

(a). 42.
(b). 46.
(c). 43.
(d). 44.

Agricultural cooperation

Question 31. Which is not a principle of cooperation?

(a). Universality.
(b). Political and religious neutrality.
(c). Voluntary association.
(d). Closed membership.

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Question 32. Who is father of cooperative movement?

(a). Robert Owen.
(b). Will Smith.
(c). Mark Jene.
(d). Stephen Hales.

Question 33. The number of cooperative societies in 1906-07 was 843. What was the number of cooperative societies in 1946-47?

(a). 8927.
(b). 172000.
(c). 9200.
(d). 129770.

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Question 34. What type of system is short term credit?

(a). One tier system.
(b). Two tier system.
(c). Three tier system.
(d). None of the above.

See answer

Question 35. What type of system is long term credit?

(a). One tier system.
(b). Two tier system.
(c). Three tier system.
(d). None of the above.

See answer

MCQ on Agricultural Finance and Cooperation


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