Microfinance Quiz

What is the primary purpose of microfinance?

• To eliminate all forms of debt

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

• To provide large loans to wealthy individuals

• To support only large corporations

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

• Microinsurance

• Microleasing

• Corporate financing

• Microcredit

What is a common criticism of microcredit?

• It has no impact on poverty reduction

• It is only available to men

• It can create indebtedness among borrowers

• It always leads to financial independence

Which model is often used in microfinance to provide loans?

• Corporate-based model

• Government-funded model

• Group-based model

• Individual-based model

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

• High transaction costs relative to loan size

• High interest rates on savings accounts

• Excessive government funding

• Low demand for microloans