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Assertion : SHG is a formal source of credit.
Reason : It helps the borrower to overcome the problem of lack of collateral.
Reason : It helps the borrower to overcome the problem of lack of collateral.
- a)Both A and R are true and R is the correct explanation of A
- b)Both A and R are true and R is not the correct explanation of A
- c)A is correct but R is wrong
- d)A is wrong but R is correct
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Assertion : SHG is a formal source of credit.Reason : It helps the bor...
SHGs are semi-formal credit sources, not formal financial institutions like banks. They correctly provide loans without collateral, aiding those lacking assets, making the reason valid but the assertion incorrect.
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Assertion : SHG is a formal source of credit.Reason : It helps the bor...
Understanding SHGs and Credit Sources
Self-Help Groups (SHGs) are primarily informal organizations that provide mutual support and savings options for their members, particularly in rural areas.
Assertion Explained
- SHGs are not classified as formal sources of credit.
- They operate outside the traditional banking system and are often community-driven.
Reason Explained
- The statement that SHGs help borrowers overcome the problem of lack of collateral is true.
- SHGs allow members to borrow money based on group responsibility and peer support, rather than requiring collateral like traditional banks.
Correct Answer: Option D
- The assertion (A) is incorrect because SHGs are informal sources of credit.
- The reason (R) is correct since SHGs enable individuals to access credit without the need for collateral.
Conclusion
In summary, while SHGs provide essential support to individuals facing collateral issues, they do not qualify as formal credit sources. Thus, the correct answer is option 'D', where the assertion is wrong, but the reason is correct.
Self-Help Groups (SHGs) are primarily informal organizations that provide mutual support and savings options for their members, particularly in rural areas.
Assertion Explained
- SHGs are not classified as formal sources of credit.
- They operate outside the traditional banking system and are often community-driven.
Reason Explained
- The statement that SHGs help borrowers overcome the problem of lack of collateral is true.
- SHGs allow members to borrow money based on group responsibility and peer support, rather than requiring collateral like traditional banks.
Correct Answer: Option D
- The assertion (A) is incorrect because SHGs are informal sources of credit.
- The reason (R) is correct since SHGs enable individuals to access credit without the need for collateral.
Conclusion
In summary, while SHGs provide essential support to individuals facing collateral issues, they do not qualify as formal credit sources. Thus, the correct answer is option 'D', where the assertion is wrong, but the reason is correct.
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Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?.
Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? for Class 10 2025 is part of Class 10 preparation. The Question and answers have been prepared according to the Class 10 exam syllabus. Information about Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Class 10 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for Class 10.
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Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Assertion : SHG is a formal source of credit.Reason : It helps the borrower to overcome the problem of lack of collateral.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true and R is not the correct explanation of Ac)A is correct but R is wrongd)A is wrong but R is correctCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice Class 10 tests.
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