11th Economics Chapter 5 Exercise Solution (Rural Development in India) Maharashtra Board – Free Solution

11th Economics Chapter 5 Exercise

Chapter 5 – Rural Development in India

Q. 1. Complete the following statements

1) Rural credit system assumes importance because _____.
a) It leads to an increase in rural income.
b) Savings are inadequate to finance farming and other economic activities.
c) It leads to overall development of the rural areas.
d) It leads to reduction in rural inequality.

2) Productive loans are economically justified because _____.
a) They are related to agricultural production.
b) They are used for personal consumption.
c) They help in eradication of poverty
d) They improve the quality of life of the people

3) Small farmers are unable to access rural credit provided by banks due to _____.
a) Presence of money lenders.
b) No branches in rural areas
c) High transaction costs
d) Preference given to large farmers.

4) The rights of socially disadvantaged groups can be safeguarded through _____.
a) empowerment of women
b) proper enforcement of law and order.
c) infrastructural development
d) improvement in quality of life.

5) The quality of life of the rural people can be improved by _____.
a) Providing safe drinking water, health, and hygiene facilities.
b) Effective implementation of land reforms
c) Providing subsidized credit facilities
d) Reducing rural inequality.

Q. 2. Choose the wrong pair

i)

A Agriculture Credit	B Requirement
1) Short-term	Purchase of fertilizers
2) Medium-term	To meet expenditure on marriages
3) Long-term	To buy tractor

Ans: Wrong Pair: Medium-term – To meet expenditure on marriages

ii)

A Rural occupational structure	B Activity
1) Agricultural sector	Banking and Insurance
2) Industrial sector	Processing of raw materials
3) Service sector	Computer related service

Ans: Wrong Pair: Agricultural sector – Banking and Insurance

Q. 3. Assertion and Reasoning questions

1) Assertion (A): Indian economy is pre-dominantly rural economy
Reasoning (R): As per 2011 census, the country’s rural population is almost 83.25 crore (68.8% of total population)
Options :
1) (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of A.
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

2) Assertion (A): Literacy is a powerful instrument of socio-economic change.
Reasoning (R): Empowerment of women helps to reduce gender disparity.
Options :
1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

3) Assertion (A): Agricultural credit is mostly for unproductive purposes.
Reasoning (R): Agricultural credit is an important pre-requisite for agricultural growth.
Options :
1) (A) is true, but (R) is false
2) (A) is False, but (R) is True
3) Both (A) and (R) are True but (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)

4) Assertion (A): Non-institutional finance forms an important part of rural credit.
Reasoning (R): Small farmers are unable to access bank credit because of borrower unfriendly products.
Options :
1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of A
4) Both (A) and (R) are True, but (R) is not the correct explanation of A

Solution of other subjects
Solution of all Chapters of Economics
1 – 2– 3 – 4 – 5 – 6 – 7 – 8 – 9 – 10

Q. 4. Identify and explain the concepts from the given illustrations

1) Kusumtai knowingly set up her business enterprise in the rural area so that people living there could be gainfully employed.
Concept: Rural Development
Explanation: Rural development is a strategy designed to improve the economic and social life of a specific group of people – the rural poor.

2) Raoji purchased a new tractor for his farm by taking a loan.
Concept: Long-Term Credit
Explanation: These loans are for a period of more than 5 years and are generally required to buy tractor, making permanent improvements on land etc.

3) Subsidized credit is provided by banks to small farmers for purchase of high-yielding variety (HYV) seeds.
Concept: Short-Term Credit
Explanation: It refers to loans not exceeding two years. It is required for meeting the short-term requirements of the cultivators.

4) Damaji borrows loan from a credit society established in the village this season rather than taking it from a moneylender.
Concept: Institutional Source of credit
Explanation: It includes commercial banks, RRB’s, Micro Finance Institutions etc. They provide loans to farmers for agricultural activities at a lower rate of interest.

5) Ramraoji takes a loan from the bank for a period of ten years subject to terms and conditions for the purpose of irrigated farming.
Concept: Long-Term Credit
Explanation: These loans are for a period of more than 5 years and are generally required to buy tractor, making permanent improvements on land etc.

Q.5. Read the following passage and answer the questions given below

Rural development is one of the thrust areas of administration. As Mahatma Gandhi rightly said, “India lives in villages and the development of the nation cannot be achieved without the development of the villages”. The need of the hour is the convergence of all development interventions, at the grassroots level which can be possible through effective governance at the village level. The movement towards decentralization of the National and State governments through the Panchayati Raj system needs to be strengthened through lessons learned from the success stories of ‘Model villages’ around India. Though India is progressing in the right direction in reducing education inequalities and increasing literacy levels, there is still a lot that needs to be done. An understanding of social issues is important for effective planning and policy development. Self-governance ensures that Indian citizens, even the previously marginalized, can participate in decision-making.

1) Explain in short Mahatma Gandhi’s views on rural development.
Answer: As Mahatma Gandhi rightly said, “India lives in villages and the development of the nation cannot be achieved without the development of the villages”
It means rural development is necessary for the development of the nation.

2) Highlight the role of the government in achieving rural development.
Answer: To achieve rural development, the government must follow the policy of decentralization of power through the Panchayati Raj system needs to be strengthened.

3) What measures have been suggested to achieve rural development.
Answer: Following measures are suggested to achieve rural development.
a) The movement towards decentralization of the National and State governments through the Panchayati Raj system needs to be strengthened.
b) An understanding of social issues is important for effective planning and policy development.
c) Self-governance ensures that Indian citizens, even the previously marginalized, can participate in decision-making.

4) Express your idea of a ‘Model Village’.
Answer: My idea of a Model Village is as follows:
a) Facilities of safe drinking water, health, and hygiene.
b) There must be good educational institutions at affordable rates.
c) Proper enforcement of law and order.

11th Economics Textbook Solutions

Chapter Name	Solution Link
1) Basic Concepts in Economics	Solution
2) Money	Solution
3) Partition Values	Solution
4) The Economy of Maharashtra	Solution
5) Rural Development in India	Solution
6) Population in India	Solution
7) Unemployment in India	Solution
8) Poverty in India	Solution
9) Economic Policy of India Since 1991	Solution
10) Economic Planning in India	Solution

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