Microfinance Quiz

What is the primary purpose of microfinance?

• To provide large loans to wealthy individuals

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

• To eliminate all forms of debt

• To support only large corporations

Which of the following is NOT a service typically included in microfinance?

• Corporate financing

• Microinsurance

• Microcredit

• Microleasing

What is a common criticism of microcredit?

• It is only available in urban areas

• It has no impact on poverty

• It is too accessible for everyone

• It can lead to increased indebtedness among borrowers

Which model is often used in microfinance to provide loans?

• Individual-based model

• Government-funded model

• Corporate-based model

• Group-based model

What is one of the main challenges faced by microfinance institutions?

• Low demand for microloans

• Excessive government funding

• High transaction costs relative to loan size

• High interest rates on savings accounts