Match List-I with List-II:
| List-I | List-II |
|---|---|
| (A) Gestation period | (I) Failure to repay the principal and interest on a debt on the scheduled date |
| (B) Default | (II) Time between crop sowing and realisation of income after production |
| (C) Financial institutions | (III) Promotes thrift through a minimum contribution from each member |
| (D) Self-Help Group | (IV) Institutions that engage in mobilisation and allocation of savings |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(II), (B)-(I), (C)-(IV), (D)-(III)
All four terms come from rural credit: why farmers borrow, failing to repay, who lends and how SHGs save.
| List-I | List-II | Reason |
|---|---|---|
| (A) Gestation period | (II) Time between crop sowing and realisation of income after production | This gap is quite long, so farmers borrow for seeds, fertilisers and family needs. |
| (B) Default | (I) Failure to repay the principal and interest on a debt on the scheduled date | A borrower who does not repay on time is in default. |
| (C) Financial institutions | (IV) Institutions that engage in mobilisation and allocation of savings | They collect people’s savings and lend them to those who need funds. |
| (D) Self-Help Group | (III) Promotes thrift through a minimum contribution from each member | Members pool small savings, and credit is given to needy members from this pool. |
NCERT (2026-27): “5.3 Credit and Marketing in Rural Areas Credit: Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agriculture sectors. As the time of gestation period between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilisers, implements and other family expenses of marriage, death, religious ceremonies etc. … The SHGs promote thrift in small proportions by a minimum contribution from each member. From the pooled money, credit is given to the needy members to be repayable in small instalments at reasonable interest rates. …” Glossary: “Default – Failure to make repayment of the principal and interest on a debt e.g. sovereign debt (loan obtained by the government) to the lenders, say, international financial institutions, on the scheduled date, causing loss of credibility as a debtor.” Glossary: “Financial Institutions – Institutions that engage in mobilisation and allocation of savings. They include commercial banks, cooperative banks, developmental banks and investment institutions.” |