Lesson eLearning

Which of the following is the main purpose of the Rural Credit Policies of NABARD?

easy MCQ 1 mark Class 12 · Economics · Rural Development
  1. To fix minimum support prices for agricultural produce
  2. To improve the availability and accessibility of institutional credit to the rural sector
  3. To provide direct cash transfers to all farm households
  4. To regulate the market price of agricultural inputs
Answer
To improve the availability and accessibility of institutional credit to the rural sector

The correct answer is To improve the availability and accessibility of institutional credit to the rural sector — Select the option that matches the objective of improving credit availability.

Step-by-step solution

  1. Identify the role of NABARD as the apex development bank for agriculture and rural development.
  2. Recall that its credit policies aim at enhancing the flow of institutional credit to farmers, SHGs, and rural enterprises.
  3. Eliminate options that refer to subsidies, price fixing, or direct procurement.
  4. Select the option that matches the objective of improving credit availability.
Common mistake: Confusing credit availability with price support measures

Concept tested: Purpose of NABARD credit policy

Published · How this solution was prepared and checked

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