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)
- (A)Serving as apex funding agency for institutions providing rural credit.
- (B)Monitoring, evaluating and coordinating rural financing activities.
- (C)Formulating and implementing monetary policy.
- (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.
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.
- 1 mark
Formulating and implementing monetary policy is the job of the Reserve Bank of India, not NABARD. Option (C).
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)
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