AThey focus on providing large-scale loans to urban businesses
BThey operate with the support of NGOs and government programs
CThey invest primarily in international stock markets
DThey are primarily focused on increasing government taxes
Answer:
B. They operate with the support of NGOs and government programs
Read Explanation:
SHGs are typically grassroots organizations supported by NGOs, banks, and government programs like the National Rural Livelihoods Mission (NRLM). They work collectively to improve financial access for low-income individuals, especially in rural areas. 3. How do SHGs promote thrift among their members? A. By forcing members to deposit large sums of money B. By encouraging regular, small savings and pooling resources for collective benefit C. By distributing money freely to all members D. By investing members’ money in high-risk ventures Answer: B. By encouraging regular, small savings and pooling resources for collective benefit Explanation: Thrift is a key aspect of SHGs, where members contribute small amounts regularly to create a common fund. This pooled resource is used to meet the members' financial needs, such as loans for small businesses, education, and healthcare. 4. Which of the following government programs focuses on promoting SHGs and livelihoods? A. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) B. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) C. Atal Pension Yojana (APY) D. Digital India Answer: B. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) Explanation: DAY-NRLM is a flagship program aimed at promoting financial inclusion, women’s empowerment, and sustainable livelihoods through SHGs. It provides institutional support to SHGs, encouraging income generation through savings and microloans. 5. How do SHGs contribute to women’s empowerment in India? A. By limiting women’s access to financial resources B. By involving women in decision-making, providing financial independence, and promoting entrepreneurship C. By making women dependent on government subsidies D. By restricting women to household roles Answer: B. By involving women in decision-making, providing financial independence, and promoting entrepreneurship Explanation: SHGs empower women by promoting collective savings, providing access to microloans, and fostering entrepreneurial activities. Women in SHGs participate in decision-making processes, which helps build financial independence and leadership skills. 6. Which financial institution primarily supports SHGs in India by providing microcredit? A. Reserve Bank of India (RBI) B. National Bank for Agriculture and Rural Development (NABARD) C. Securities and Exchange Board of India (SEBI) D. Industrial Development Bank of India (IDBI) Answer: B. National Bank for Agriculture and Rural Development (NABARD) Explanation: NABARD plays a key role in supporting SHGs through its Self-Help Group-Bank Linkage Program (SHG-BLP). It facilitates microcredit by linking SHGs to formal financial institutions, providing them with affordable loans to improve livelihoods. 7. What is the primary mechanism through which SHGs offer loans to their members? A. By borrowing from multinational corporations B. Through pooled savings and group-based lending C. By receiving direct government subsidies D. By investing in global financial markets Answer: B. Through pooled savings and group-based lending Explanation: SHGs function on the principle of group-based lending. Members contribute to a collective fund through regular savings. The pooled money is then loaned to members based on their needs, fostering financial discipline and collective responsibility. 8. How does the SHG-Bank Linkage Program (SBLP) support SHGs in India? A. By allowing SHGs to operate as commercial banks B. By linking SHGs with formal banks to provide collateral-free microloans C. By providing SHGs with high-interest loans from the government D. By merging SHGs with private corporations Answer: B. By linking SHGs with formal banks to provide collateral-free microloans Explanation: The SHG-Bank Linkage Program (SBLP), initiated by NABARD, connects SHGs to formal financial institutions, enabling them to access collateral-free loans. This enhances the financial inclusion of rural and low-income populations, particularly women. 9. In which of the following ways do SHGs promote rural economic development? A. By focusing only on urban development B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas C. By reducing agricultural production in rural areas D. By preventing people from saving money Answer: B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas Explanation: SHGs contribute to rural economic development by promoting micro-enterprises, providing credit for small businesses, and enhancing financial literacy. This, in turn, creates employment, improves incomes, and strengthens the local economy. 10. Which of the following challenges is most commonly faced by SHGs in India? A. Excessive government control B. Lack of access to formal financial institutions C. Overdependence on international loans D. High profit margins Answer: B. Lack of access to formal financial institutions Explanation: While SHGs have improved financial inclusion, many groups still face challenges such as limited access to formal financial institutions, inadequate credit availability, and financial illiteracy. These barriers can limit the potential of SHGs to expand and achieve full financial empowerment. These questions cover key aspects of Self-Help Groups (SHGs) and thrift, including their structure, benefits, challenges, and their role in promoting financial inclusion, women’s empowerment, and rural development in India. SHGs are typically grassroots organizations supported by NGOs, banks, and government programs like the National Rural Livelihoods Mission (NRLM). They work collectively to improve financial access for low-income individuals, especially in rural areas. 3. How do SHGs promote thrift among their members? A. By forcing members to deposit large sums of money B. By encouraging regular, small savings and pooling resources for collective benefit C. By distributing money freely to all members D. By investing members’ money in high-risk ventures Answer: B. By encouraging regular, small savings and pooling resources for collective benefit Explanation: Thrift is a key aspect of SHGs, where members contribute small amounts regularly to create a common fund. This pooled resource is used to meet the members' financial needs, such as loans for small businesses, education, and healthcare. 4. Which of the following government programs focuses on promoting SHGs and livelihoods? A. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) B. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) C. Atal Pension Yojana (APY) D. Digital India Answer: B. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) Explanation: DAY-NRLM is a flagship program aimed at promoting financial inclusion, women’s empowerment, and sustainable livelihoods through SHGs. It provides institutional support to SHGs, encouraging income generation through savings and microloans. 5. How do SHGs contribute to women’s empowerment in India? A. By limiting women’s access to financial resources B. By involving women in decision-making, providing financial independence, and promoting entrepreneurship C. By making women dependent on government subsidies D. By restricting women to household roles Answer: B. By involving women in decision-making, providing financial independence, and promoting entrepreneurship Explanation: SHGs empower women by promoting collective savings, providing access to microloans, and fostering entrepreneurial activities. Women in SHGs participate in decision-making processes, which helps build financial independence and leadership skills. 6. Which financial institution primarily supports SHGs in India by providing microcredit? A. Reserve Bank of India (RBI) B. National Bank for Agriculture and Rural Development (NABARD) C. Securities and Exchange Board of India (SEBI) D. Industrial Development Bank of India (IDBI) Answer: B. National Bank for Agriculture and Rural Development (NABARD) Explanation: NABARD plays a key role in supporting SHGs through its Self-Help Group-Bank Linkage Program (SHG-BLP). It facilitates microcredit by linking SHGs to formal financial institutions, providing them with affordable loans to improve livelihoods. 7. What is the primary mechanism through which SHGs offer loans to their members? A. By borrowing from multinational corporations B. Through pooled savings and group-based lending C. By receiving direct government subsidies D. By investing in global financial markets Answer: B. Through pooled savings and group-based lending Explanation: SHGs function on the principle of group-based lending. Members contribute to a collective fund through regular savings. The pooled money is then loaned to members based on their needs, fostering financial discipline and collective responsibility. 8. How does the SHG-Bank Linkage Program (SBLP) support SHGs in India? A. By allowing SHGs to operate as commercial banks B. By linking SHGs with formal banks to provide collateral-free microloans C. By providing SHGs with high-interest loans from the government D. By merging SHGs with private corporations Answer: B. By linking SHGs with formal banks to provide collateral-free microloans Explanation: The SHG-Bank Linkage Program (SBLP), initiated by NABARD, connects SHGs to formal financial institutions, enabling them to access collateral-free loans. This enhances the financial inclusion of rural and low-income populations, particularly women. 9. In which of the following ways do SHGs promote rural economic development? A. By focusing only on urban development B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas C. By reducing agricultural production in rural areas D. By preventing people from saving money Answer: B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas Explanation: SHGs contribute to rural economic development by promoting micro-enterprises, providing credit for small businesses, and enhancing financial literacy. This, in turn, creates employment, improves incomes, and strengthens the local economy. 10. Which of the following challenges is most commonly faced by SHGs in India? A. Excessive government control B. Lack of access to formal financial institutions C. Overdependence on international loans D. High profit margins Answer: B. Lack of access to formal financial institutions Explanation: While SHGs have improved financial inclusion, many groups still face challenges such as limited access to formal financial institutions, inadequate credit availability, and financial illiteracy. These barriers can limit the potential of SHGs to expand and achieve full financial empowerment. These questions cover key aspects of Self-Help Groups (SHGs) and thrift, including their structure, benefits, challenges, and their role in promoting financial inclusion, women’s empowerment, and rural development in India. SHGs are typically grassroots organizations supported by NGOs, banks, and government programs like the National Rural Livelihoods Mission (NRLM). They work collectively to improve financial access for low-income individuals, especially in rural areas. 3. How do SHGs promote thrift among their members? A. By forcing members to deposit large sums of money B. By encouraging regular, small savings and pooling resources for collective benefit C. By distributing money freely to all members D. By investing members’ money in high-risk ventures Answer: B. By encouraging regular, small savings and pooling resources for collective benefit Explanation: Thrift is a key aspect of SHGs, where members contribute small amounts regularly to create a common fund. This pooled resource is used to meet the members' financial needs, such as loans for small businesses, education, and healthcare. 4. Which of the following government programs focuses on promoting SHGs and livelihoods? A. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) B. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) C. Atal Pension Yojana (APY) D. Digital India Answer: B. Deen Dayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM) Explanation: DAY-NRLM is a flagship program aimed at promoting financial inclusion, women’s empowerment, and sustainable livelihoods through SHGs. It provides institutional support to SHGs, encouraging income generation through savings and microloans. 5. How do SHGs contribute to women’s empowerment in India? A. By limiting women’s access to financial resources B. By involving women in decision-making, providing financial independence, and promoting entrepreneurship C. By making women dependent on government subsidies D. By restricting women to household roles Answer: B. By involving women in decision-making, providing financial independence, and promoting entrepreneurship Explanation: SHGs empower women by promoting collective savings, providing access to microloans, and fostering entrepreneurial activities. Women in SHGs participate in decision-making processes, which helps build financial independence and leadership skills. 6. Which financial institution primarily supports SHGs in India by providing microcredit? A. Reserve Bank of India (RBI) B. National Bank for Agriculture and Rural Development (NABARD) C. Securities and Exchange Board of India (SEBI) D. Industrial Development Bank of India (IDBI) Answer: B. National Bank for Agriculture and Rural Development (NABARD) Explanation: NABARD plays a key role in supporting SHGs through its Self-Help Group-Bank Linkage Program (SHG-BLP). It facilitates microcredit by linking SHGs to formal financial institutions, providing them with affordable loans to improve livelihoods. 7. What is the primary mechanism through which SHGs offer loans to their members? A. By borrowing from multinational corporations B. Through pooled savings and group-based lending C. By receiving direct government subsidies D. By investing in global financial markets Answer: B. Through pooled savings and group-based lending Explanation: SHGs function on the principle of group-based lending. Members contribute to a collective fund through regular savings. The pooled money is then loaned to members based on their needs, fostering financial discipline and collective responsibility. 8. How does the SHG-Bank Linkage Program (SBLP) support SHGs in India? A. By allowing SHGs to operate as commercial banks B. By linking SHGs with formal banks to provide collateral-free microloans C. By providing SHGs with high-interest loans from the government D. By merging SHGs with private corporations Answer: B. By linking SHGs with formal banks to provide collateral-free microloans Explanation: The SHG-Bank Linkage Program (SBLP), initiated by NABARD, connects SHGs to formal financial institutions, enabling them to access collateral-free loans. This enhances the financial inclusion of rural and low-income populations, particularly women. 9. In which of the following ways do SHGs promote rural economic development? A. By focusing only on urban development B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas C. By reducing agricultural production in rural areas D. By preventing people from saving money Answer: B. By fostering entrepreneurship, creating employment, and improving financial literacy in rural areas Explanation: SHGs contribute to rural economic development by promoting micro-enterprises, providing credit for small businesses, and enhancing financial literacy. This, in turn, creates employment, improves incomes, and strengthens the local economy. 10. Which of the following challenges is most commonly faced by SHGs in India? A. Excessive government control B. Lack of access to formal financial institutions C. Overdependence on international loans D. High profit margins Answer: B. Lack of access to formal financial institutions Explanation: While SHGs have improved financial inclusion, many groups still face challenges such as limited access to formal financial institutions, inadequate credit availability, and financial illiteracy. These barriers can limit the potential of SHGs to expand and achieve full financial empowerment. These questions cover key aspects of Self-Help Groups (SHGs) and thrift, including their structure, benefits, challenges, and their role in promoting financial inclusion, women’s empowerment, and rural development in India. SHGs are typically grassroots organizations supported by NGOs, banks, and government programs like the National Rural Livelihoods Mission (NRLM). They work collectively to improve financial access for low-income individuals, especially in rural areas.