BBA1023 Tutorial 5

What is financial inclusion?

• The access of individuals and businesses to affordable financial services that meet their needs

• The restriction of financial services for specific groups of the population

• The provision of digital wallets to low-income individuals

Why is financial inclusion crucial for those vulnerable to shocks such as natural disasters or medical emergencies?

• Financial inclusion ensures that people can access affordable loans to cover their expenses.

• Financial inclusion allows people to save for emergencies and plan for their future

• Financial inclusion provides people with access to insurance and other risk management tools.

How does financial inclusion alleviate poverty and inequality?

• Financial inclusion provides people with access to affordable loans to start businesses.

• Financial inclusion allows people to save and plan for their future, increasing their economic stability.

• Financial inclusion reduces the wealth gap between rich and poor by providing more people with access to financial resources.

What are some factors that limit people's ability to save, borrow, and spend money with convenience?

• Social status and limited education.

• Access to digital technology.

• The availability of financial institutions in their area.

What percentage of American households are unbanked or underbanked?

• 10%

• 25%

• 50%

• 75%

Why are some people unbanked or underbanked?

• They live in areas without nearby bank branches.

• They don't trust banks.

• They feel too poor to open an account.

• All of the above.

What is the role of Community Development Financial Institutions (CDFIs) in addressing the issue of the unbanked?

• They provide affordable banking services to economically distressed areas.

• They invest in high-risk, high-reward financial ventures.

• They lobby the government for more financial regulation.

• None of the above.

Why is access to safe and affordable financial services important for families with limited wealth?

• They need to invest in education.

• They need to start a business.

• They need to manage the ups and downs of life.

• All of the above.

What are some of the outcomes for people who are unbanked or underbanked?

• They are more likely to use expensive services like payday loans.

• They may have difficulty paying bills and expenses.

• They may miss out on opportunities to invest in their future.

• All of the above.

What is a banking desert?

• An area where there are no banks or bank branches nearby.

• An area where there are too many banks, causing competition to be too high.

• An area where banks refuse to provide services to low-income communities.

• None of the above.