NABARD Assistant Manager Grade A Cooperatives & Farmer Producer Organisations: practice questions

1 · The cooperative movement and the state · medium

Brazil's 1988 Constitution says that creating a cooperative needs no government authorisation and that the state may not interfere in its functioning. Which ICA principle does this most directly protect?

1. Member economic participation
2. Autonomy and independence
3. Concern for community
4. Voluntary and open membership

2 · The cooperative movement and the state · hard

Kenya rewrote its cooperative law in 1997 to cut state control, then amended it in 2004 after mismanagement appeared in some societies. What does this sequence most often illustrate?

1. That cooperatives perform best when run directly by a government department
2. That liberalisation always fails and should be reversed in full
3. That autonomy without member oversight and audit can let mismanagement grow
4. That deposit-taking cooperatives need no prudential rules once law is liberal

3 · The cooperative movement and the state · easy

The United Nations declared which years International Years of Cooperatives?

1. 2012 and 2025
2. 1995 and 2005
3. 1844 and 1944
4. 2002 and 2021

4 · Credit and non-credit cooperatives · medium

A multipurpose village cooperative differs from a single-purpose credit society mainly in that it:

1. Takes deposits from the general public without membership and lends them to local traders
2. Combines lending with input supply, storage, marketing and other services
3. Lends only for long-term investment
4. Is registered under company law

5 · Revitalisation and reform of cooperatives · medium

Some countries have passed a 'parallel' liberal cooperative law beside the old one, so that certain societies can be largely self-regulating. What is the main condition for using it?

1. The society must first merge with its district federation
2. The society gives up government equity and its controls
3. The society must convert into a company with tradable shares
4. The society must restrict its membership to landowning farmers

6 · Formation of producer organisations and producer companies · medium

Why do producer-organisation laws usually limit membership to producers and their organisations, excluding traders and lenders?

1. To prevent members from selling any produce outside the organisation
2. To make the organisation eligible for listing on a stock exchange
3. To keep control and benefit with the users who supply the produce
4. To exempt the organisation from audit and financial reporting

7 · Governance of producer organisations · easy

Why do cooperative and producer-organisation laws often set both a minimum and a maximum board size?

1. So that every village represented has exactly one director
2. So that the government can fill any vacant seats directly
3. So that shareholders with the most capital hold most seats
4. A minimum ensures oversight; a maximum keeps it workable

8 · Public programmes to promote producer organisations: membership, management cost support, equity grants and credit guarantees · easy

A programme requires at least 300 members for producer organisations in the plains but only 100 in hill areas. What is the reason for the lower hill threshold?

1. Hill farmers are legally barred from joining larger organisations
2. Hill organisations receive no management cost support at all
3. Hill areas grow only one crop, so fewer members are needed
4. Sparse, scattered settlement makes large groups harder to form

9 · Public programmes to promote producer organisations: membership, management cost support, equity grants and credit guarantees · medium

A credit guarantee covers 85% of a project loan up to 10 million currency units (ceiling 8.5 million) and 75% of loans above 10 million up to 20 million (ceiling 15 million). A bank lends a producer organisation 8 million. What is the maximum guarantee cover?

1. 8.5 million currency units
2. 6.8 million currency units
3. 6.0 million currency units
4. 8.0 million currency units

10 · Public programmes to promote producer organisations: membership, management cost support, equity grants and credit guarantees · medium

In a producer-organisation support programme, what role does a national project management agency usually play?

1. Owning a share in every organisation formed under the programme
2. Registering organisations in place of the company or cooperative registrar
3. Lending directly to members for their crop production
4. Coordinating implementing agencies and keeping the programme database