NABARD deals with:
Options
AIndustrial Credit
BAgricultural Credit
CExport Credit
DHousing Credit
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Money MarketMTP - June 2023 (Inter)Question 160 of 20
All Questions Correct Answer
✅ Option b — Agricultural Credit
All Options:
- AIndustrial Credit
- BAgricultural Credit
- CExport Credit
- DHousing Credit
Detailed Solution & Explanation
To determine the correct answer, let's break down the role of NABARD:
• NABARD stands for National Bank for Agriculture and Rural Development, which gives a clear indication of its primary focus.
• The bank was established to promote sustainable and equitable agriculture and rural development, which aligns with the concept of agricultural credit.
• NABARD provides credit and other facilities for the development of agriculture, small-scale industries, and other allied economic activities in rural areas, which is a key aspect of agricultural credit.
The correct answer is related to agricultural credit because NABARD's main objective is to support and promote rural development through agricultural credit.
On the other hand, options like industrial credit and export credit are not the primary focus of NABARD, as they are more related to the manufacturing and international trade sectors, which are not the bank's main areas of operation.
About This Chapter: Money Market
Paper
Paper 4: Business Economics
Weightage
10%
Key Topics
Money Demand/Supply, Monetary Policy
This chapter covers the monetary system — how money circulates in the economy. Topics include Demand for Money, Supply of Money, Monetary Policy instruments (Repo Rate, CRR, SLR, Open Market Operations), and the role of the Reserve Bank of India in controlling inflation and managing the economy.
View Official ICAI SyllabusExam Strategy Tip
Memorize the RBI's monetary policy instruments and their impacts. Questions often ask about the effect of changing CRR or Repo Rate on money supply.
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