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Analyze the above given statement and select the correct option. -
a) Credit creation in rural area of Bangladesh for poor.
b) Informal credit creation in Bangladesh for poor.
c) Government role in credit creation
d) Cheap credit by the Grameen Bank of Bangladesh in villages
7 In the question given below, there are two statements marked as Assertion (A) and 1
Reason (R). Read the statements and chose the correct option:
Assertion (A): Most of the important decisions regarding the savings and loan activities are taken
by the group members.
Reason (R): The group decides as regards the loan to be granted- the purpose, amount, interest to
be charged, repayment schedule etc.
a) Both A and R are true and R is the correct explanation of A.
b) Both A and R are true but R is the correct explanation of A.
c) A is correct but R is wrong.
d) A is wrong but R is correct.
8 For what purposes do SHGs give loans to its members? 2

9 Analyze the role of credit for development. 2

10 Mention any three values reflected by SHGs. 3

11 Charan needs a loan to set up a small business. On what basis will Manav decide whether to 3
borrow from the bank or the moneylender? Discuss.

13 What are the reasons why the banks might not be willing to lend to certain borrowers? 5

14 What is the basic idea behind the SHG? How does an SHG function? Apart from generating 5
credit, how has the SHG s helped the rural poor?