Complete the following statements :

1) Rural credit system assumes importance
because …………..
a) It leads to an increase in the 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.
Ans:- b) Savings are inadequate to finance farming and
other economic activities.

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
Ans:- a) They are related to agricultural production.

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.
Ans:- c)High transaction costs

4) The rights of socially disadvantaged groups can
be safe guarded through ……………….
a) empowerment of women
b) proper enforcement of law and order.
c) infrastructural development
d) improvement in quality of life.
Ans:- b) proper enforcement of law and order.

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.
Ans:- a) Providing safe drinking water, health and hygiene
facilities.