What is the primary purpose of microfinance?

• To eliminate all forms of debt

• To provide large loans to wealthy individuals

• To offer financial services to individuals and small businesses lacking access to conventional banking

• To support only large corporations

Which of the following is NOT a component of microfinance?

• Investment banking

• Savings and checking accounts

• Microcredit

• Microinsurance

Who is considered a pioneer of the microfinance movement?

• Muhammad Yunus

• Bill Gates

• Warren Buffet

• Elon Musk

What is a common criticism of microcredit?

• It always leads to wealth accumulation

• It can create indebtedness among borrowers

• It has no impact on poverty

• It is only available to men

What does the term 'saving down' refer to?

• Saving money in a bank account

• Investing in high-risk stocks

• Borrowing money to save for future expenses

• Accumulating money before it is needed

Which of the following is a benefit of microfinance?

• It guarantees wealth for all participants

• It focuses solely on urban areas

• It eliminates the need for savings

• It provides access to financial services for the poor

What is a key challenge faced by microfinance institutions?

• High transaction costs relative to loan size

• Excessive government regulation

• Too many clients with high credit scores

• Lack of interest in microloans

What is the average interest rate for microfinance loans globally?

• 5%

• 15%

• 50%

• 37%

Which demographic is often the primary focus of microfinance services?

• Children

• Elderly

• Women

• Men

What is a common method used in microfinance to provide loans?

• Only through government programs

• Individual lending only

• Loans without any interest

• Group-based lending