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Read the following… (Class 12 Economics SQP 2025-26, Q21)

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EconomicsCBSE Class 12 · Sample paper, session 2025-26 · 1 mark · Assertion-reason

CBSE Class 12 Economics sample paper 2025-26: question 21

From the official CBSE sample question paper for 2025-26, section B, question 21, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q21 · 1 mark · Assertion-reasonCompetency-basedRural Development

Read the following statements: Assertion (A) and Reason (R). Choose the correct option from those given below:
Assertion (A): Indian rural credit system was significantly transformed with the implementation of technological reforms in agriculture sector.
Reason (R): Green Revolution led to the diversification of the portfolio of rural credit towards production-oriented lending.

  1. (A)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  2. (B)Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. (C)Assertion (A) is true, but Reason (R) is false.
  4. (D)Assertion (A) is false, but Reason (R) is true.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2025-26.

Hints

Open one hint at a time and try again before the next.

Hint 1

Which technological change in agriculture needed costly inputs?

Hint 2

Did farmers then borrow for consumption or production?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Assertion: True. The rural credit system changed greatly when new agricultural technology came in.

    Reason: True. The Green Revolution brought major changes in rural credit, shifting the portfolio towards production-oriented lending.

  2. R explains why the credit system was transformed. A and R are true and R explains A. Option (A).

    1 mark

Answer: (A) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).

Where the marks are

  • Truth of A and R and the link between them (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Rural Development, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2025-26: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.