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NABARD Assistant Manager Grade A Agricultural Development & Policy Analysis: practice questions

NABARD Assistant Manager Grade A (RDBS) · India · National Bank for Agriculture and Rural Development

Original practice questions written to the published syllabus · not past papers
10worked here, free
22written to this exam in this subject
10syllabus units

About NABARD Assistant Manager Grade A

NABARD Assistant Manager Grade A (RDBS) is a government recruitment exam run by National Bank for Agriculture and Rural Development, for candidates in India. Phase I: 200 questions / 200 marks / 120 minutes, -1/4. Phase II: Paper I General English, descriptive, 100 marks / 90 minutes; Paper II (generalist) ESI + ARD, 30 objective questions / 50 marks / 30 minutes plus descriptive (attempt 4 of 6: 2 x 15 + 2 x 10) / 50 marks / 90 minutes. Mandatory psychometric test. Interview 50.

Source: nabard.org.

Checked against the exam body's published information. Formats and fees change; confirm the current edition there before you book.

Agricultural Development & Policy Analysis in NABARD Assistant Manager Grade A

The part agriculture plays in economic development, the classic theories of that role, and how price, land, credit, research, trade and subsidy policy are made and judged.

Our 22 NABARD Assistant Manager Grade A questions in this subject: 13 easy, 8 medium, 1 hard, across 10 units.

10 practice questions, worked

Choose an answer, then open the working. Each explanation says why the right answer is right and why the others are not.

These 10 were written to NABARD Assistant Manager Grade A and are not shown on any other exam's page.

Question 1 · medium

Agriculture is 20% of an economy's GDP and grows at 3% a year; the rest of the economy (80%) grows at 8%. What is the approximate growth rate of GDP?

  1. 5.5%
  2. 4.0%
  3. 11.0%
  4. 7.0%
Answer and working

D. 7.0%

GDP growth is the share-weighted average of sectoral growth: 0.2 x 3 + 0.8 x 8 = 0.6 + 6.4 = 7.0%. The simple average of 3 and 8 gives 5.5% (ignores weights); swapping the weights gives 0.8 x 3 + 0.2 x 8 = 4.0%; adding the rates gives 11%.

Question 2 · medium

In the CACP cost concepts, cost A2 is

  1. cost A1 plus imputed value of family labour
  2. cost B1 plus rental value of owned land
  3. cost C2 plus 10% for management
  4. cost A1 plus rent paid for leased-in land
Answer and working

D. cost A1 plus rent paid for leased-in land

A1 is all paid-out costs of an owner-operator; A2 adds rent actually paid for leased-in land. Adding family labour to A2 gives A2+FL; B2 involves rental value of owned land; C3 adds 10% management to C2*.

Question 3 · medium

For a crop, cost A2+FL is 1,500 currency units per quintal and cost C2 is 2,000 per quintal. Under the rule announced in the Union Budget 2018-19 (MSP at least 1.5 times cost of production, applied on A2+FL), the minimum MSP is

  1. 3,000 currency units per quintal
  2. 2,000 currency units per quintal
  3. 1,750 currency units per quintal
  4. 2,250 currency units per quintal
Answer and working

D. 2,250 currency units per quintal

1.5 x A2+FL = 1.5 x 1,500 = 2,250 currency units. 3,000 currency units is 1.5 x C2, the basis farm groups read into the Swaminathan Commission's recommendation. 2,000 currency units is C2 itself with no margin, and 1,750 adds only 250 to A2+FL.

Question 4 · medium

A farmer takes a short-term crop loan of 200,000 currency units for one year at 7% interest and qualifies for a 3% prompt-repayment incentive. How much interest does he effectively bear?

  1. 14,000 currency units
  2. 8,000 currency units
  3. 20,000 currency units
  4. 6,000 currency units
Answer and working

B. 8,000 currency units

Effective rate = 7% - 3% = 4%; interest = 200,000 x 0.04 = 8,000 currency units. 14,000 currency units ignores the incentive; 20,000 currency units wrongly adds the two rates; 6,000 currency units applies only the 3% incentive rate as if it were the charge.

Question 5 · medium

Under Reserve Bank of India priority sector norms, the target for lending to agriculture is

  1. 40% of adjusted net bank credit
  2. 10% of adjusted net bank credit
  3. 75% of adjusted net bank credit
  4. 18% of adjusted net bank credit
Answer and working

D. 18% of adjusted net bank credit

Agriculture's target is 18% of ANBC (or credit equivalent of off-balance-sheet exposure), with a sub-target for small and marginal farmers. 40% is the overall priority sector target for domestic commercial banks, a common confusion. Check the current master direction for sub-target values.

Question 6 · easy

The WTO 'blue box' covers

  1. support with no or minimal trade distortion
  2. investment and input subsidies to low-income producers in developing countries
  3. direct payments under production-limiting programmes
  4. export subsidies
Answer and working

C. direct payments under production-limiting programmes

Blue box payments (Article 6.5) are tied to fixed areas, yields or livestock numbers under programmes that limit production. Minimal-distortion support is green box; Article 6.2 development box covers investment and input subsidies to low-income or resource-poor producers.

Question 7 · easy

Under PM-KISAN, announced in February 2019, eligible farmer families receive

  1. 6,000 currency units a year in one instalment
  2. 6,000 currency units a year in three equal instalments
  3. 10,000 currency units per acre per season
  4. 2,000 currency units a year in three instalments
Answer and working

B. 6,000 currency units a year in three equal instalments

PM-KISAN pays 6,000 currency units a year as three instalments of 2,000, by direct benefit transfer. Per-acre payments describe Telangana's Rythu Bandhu, a different design. Check current eligibility rules before relying on them.

Question 8 · easy

Which of the following is NOT one of the four commonly used dimensions of food security?

  1. Availability
  2. Access
  3. Utilisation
  4. Profitability
Answer and working

D. Profitability

The four dimensions are availability, access, utilisation and stability. Profitability of farming affects availability indirectly but is not a dimension of food security.

Question 9 · hard

If 800 million people are each entitled to 5 kg of grain per month, roughly how much grain is needed in a year?

  1. 48 million tonnes
  2. 4 million tonnes
  3. 480 million tonnes
  4. 60 million tonnes
Answer and working

A. 48 million tonnes

800 million x 5 kg x 12 months = 48,000 million kg = 48 million tonnes. 4 million tonnes is one month's requirement; 480 Mt is a factor-of-ten slip in converting kg to tonnes.

Question 10 · easy

The Targeted Public Distribution System, with different prices for households below and above the poverty line, was introduced in

  1. 1992
  2. 2000
  3. 1997
  4. 2013
Answer and working

C. 1997

TPDS came in 1997. 1992 is the Revamped PDS for difficult areas; 2000 is Antyodaya Anna Yojana; 2013 is the National Food Security Act.

A study plan for Agricultural Development & Policy Analysis in NABARD Assistant Manager Grade A

This plan follows where our questions actually fall, so the time goes where the marks are likely to be. It is our reading of the syllabus, not the exam body's weighting.

  1. First, the heavy units (68% of the 22 questions): Food and nutrition security (5, 23%); Credit policy (4, 18%); Price policy and minimum support prices (3, 14%); Trade and subsidy policy (3, 14%).

    Read the manual chapters for these first and do every worked question you can find on them.

  2. Then the middle band: Land policy (2, 9%); Performance of agriculture across world regions (1, 5%); Poverty and inequality (1, 5%); Role of agriculture in economic development (1, 5%).

    Aim for one sitting per unit, then mixed questions across them.

  3. Then the lighter units: The policy process and implementation (1, 5%); Water, energy and environment policy (1, 5%).

    Learn the definitions, classifications and standard numbers; these units are more often recalled than worked.

  4. Leave time for the hard ones: Food and nutrition security (1 hard of 5).

    Come back to these after a first pass, untimed, and read every explanation, including for the options you rejected.

  5. Bank the easy marks: Trade and subsidy policy (3 easy of 3); Poverty and inequality (1 easy of 1).

    Do these early in revision so they are fast on the day.

  6. Finish timed. Sit the subject as a timed set without notes, mark it, and send each wrong answer back to its unit above.

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