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Why this topic?

Used in EI 2025 plus a repeated topic in APSC exams

1. Which of the following statements about NABARD is true?
A) NABARD was established in 1975 following the recommendation of the Rangarajan Committee.
B) NABARD primarily focuses on industrial financing.
C) NABARD was established in 1982 to promote rural development.
D) NABARD operates under the Ministry of Commerce and Industry.

Answer: C) NABARD was established in 1982 to promote rural development.

2. Consider the following statements about NABARD:

  1. NABARD provides credit facilities to rural financial institutions.
  2. It directly finances large-scale rural infrastructure projects without involving state governments.
    Which of the above statements is/are correct?
    A) 1 only
    B) 2 only
    C) Both 1 and 2
    D) Neither 1 nor 2

Answer: A) 1 only

3. NABARD’s core functions include:
A) Regulating commercial banks in urban areas
B) Providing refinance facilities for rural and agricultural development
C) Managing the monetary policy of India
D) Implementing the National Pension System (NPS)

Answer: B) Providing refinance facilities for rural and agricultural development

4. Which of the following funds is managed by NABARD?

  1. Rural Infrastructure Development Fund (RIDF)
  2. Financial Inclusion Fund (FIF)
  3. Industrial Development Fund (IDF)

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) All of the above

Answer: A) 1 and 2 only

5. NABARD was established based on the recommendations of:
A) Kelkar Committee
B) Swaminathan Committee
C) Shivaraman Committee
D) Narsimham Committee

Answer: C) Shivaraman Committee

6. Consider the following statements regarding NABARD’s refinance support:

  1. NABARD provides short-term credit to cooperative banks for seasonal agricultural operations.
  2. It extends long-term refinance to commercial banks for rural housing projects.

Which of the statements is/are correct?
A) 1 only
B) 2 only
C) Both 1 and 2
D) Neither 1 nor 2

Answer: C) Both 1 and 2

7. Which of the following is not a role of NABARD?
A) Supervising Regional Rural Banks (RRBs)
B) Conducting monetary policy reviews
C) Supporting Self-Help Groups (SHGs)
D) Promoting rural entrepreneurship

Answer: B) Conducting monetary policy reviews

8. The headquarters of NABARD is located in:
A) New Delhi
B) Hyderabad
C) Mumbai
D) Kolkata

Answer: C) Mumbai

9. NABARD’s Rural Infrastructure Development Fund (RIDF) was created in:
A) 1982
B) 1991
C) 1995
D) 2000

Answer: C) 1995

10. Which of the following statements about NABARD’s support to Farmer Producer Organisations (FPOs) is correct?
A) NABARD only provides loans to FPOs for purchasing agricultural machinery.
B) NABARD supports FPOs by providing credit, capacity building, and market linkages.
C) NABARD focuses exclusively on financing FPOs formed by large farmers.
D) NABARD’s assistance to FPOs is limited to dairy farming.

Answer: B) NABARD supports FPOs by providing credit, capacity building, and market linkages.

Published by Pragyanxetu

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