Assertion (A): Self-help groups can lend to members who have no collateral.
Reason (R): Members know one another, and group pressure helps ensure repayment.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

Trust and peer pressure replace collateral as the guarantee of repayment.
R explains A.

Concept: Self-help groups
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsRural credit

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Ten questions from Rural Development, at your own pace.

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Assertion (A): Self-help groups can lend to members who have no collateral.Reason (R): Members know one another, and group pressure helps ensure repayment.

Explanation

Assertion (A): Self-help groups can lend to members who have no collateral.
Reason (R): Members know one another, and group pressure helps ensure repayment.