Self Help Groups MCQs
Self Help Groups – MCQs with Answers & Explanations
Class: 11 |
Subject: Economics |
Section: Rural Development |
Topic: Self Help Groups |
Board: CBSE
These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examinations. Each question includes detailed explanations for better concept clarity.
1. A Self Help Group (SHG) is:
Answer: B
SHGs are small voluntary associations of people, usually from similar socio‑economic backgrounds, who come together to solve common problems through mutual help.
2. The ideal size of an SHG generally ranges between:
Answer: B
SHGs function effectively when membership is manageable, ensuring trust, participation, and group accountability.
3. SHGs promote financial inclusion by:
Answer: B
Through SHG‑Bank linkage, members access formal credit, savings, and financial services.
4. Regular savings by SHG members help in:
Answer: A
Members contribute small savings regularly, forming a corpus used for internal lending.
5. Loans within SHGs are usually given for:
Answer: A
Internal lending supports small businesses, agriculture, and self‑employment activities.
6. SHGs reduce dependence on:
Answer: B
They provide affordable credit, reducing exploitation by informal lenders.
7. SHG‑Bank linkage programme is supported by:
Answer: A
NABARD pioneered the SHG‑Bank linkage model in India.
8. Group lending is based on:
Answer: B
Members share responsibility for loan repayment.
9. SHGs empower women by:
Answer: B
Women gain financial independence and decision‑making power.
10. Internal lending interest is decided by:
Answer: C
SHGs democratically decide lending terms.
11. SHGs promote:
Answer: A
They function through participatory governance.
12. Book‑keeping in SHGs ensures:
Answer: A
Proper records build trust and accountability.
13. SHGs are part of:
Answer: A
They support poverty alleviation and livelihood generation.
14. Regular meetings help in:
Answer: B
Meetings ensure communication and monitoring.
15. SHGs improve creditworthiness because of:
Answer: B
Regular savings build financial credibility.
16. Bank loans to SHGs are usually:
Answer: A
Group guarantee replaces collateral.
17. SHGs encourage:
Answer: A
Members regularly deposit savings.
18. SHGs are mostly formed among:
Answer: B
They target financially excluded populations.
19. SHGs strengthen:
Answer: A
They build mutual trust and cooperation.
20. SHGs are an effective tool for:
Answer: A
They generate income opportunities and empower rural households.