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EconomicsCBSE Class 12 · Sample paper, session 2026-27 · 1 mark · MCQ

CBSE Class 12 Economics sample paper 2026-27: question 25

From the official CBSE sample question paper for 2026-27, section B, question 25, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q25 · 1 mark · MCQRural Development

Identify which of the following is not the function of National Bank for Agriculture and Rural development (NABARD). (Choose the correct option)

  1. (A)Serving as apex funding agency for institutions providing rural credit.
  2. (B)Monitoring, evaluating and coordinating rural financing activities.
  3. (C)Formulating and implementing monetary policy.
  4. (D)Coordinating rural credit policies with the government.

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

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

Hint 1

Which institution controls money supply in India?

Hint 2

NABARD is about rural credit.

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. NABARD (1982) is the apex body for rural credit: it funds institutions providing rural credit, monitors and coordinates rural financing, and coordinates rural credit policy with the government.

  2. Formulating and implementing monetary policy is the job of the Reserve Bank of India, not NABARD. Option (C).

    1 mark

Answer: (C) Formulating and implementing monetary policy.

Where the marks are

  • Monetary policy belongs to the RBI (1 mark)

Revise the chapter

  • Chapter: Rural Development (notes, formulas, where marks are lost and every past question)

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.