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Q.

A small group of people who come together to pool their savings regularly is known as a :


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a

Self-Help Group

b

Cooperative society

c

Regional rural bank

d

None of the above 

answer is A.

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Detailed Solution

A small group of people who come together to pool their savings regularly is known as a self-help group. It is formed by 15-20 people, particularly women, for the welfare of all the members. Members can raise loans on easy terms and low-interest rates from the group, which provides them out of the savings collected to date. It thus helps create self-employment opportunities for its members by providing loans for carrying out productive activities.
 
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