Microfinance Quiz

What is the definition of Microfinance according to Jeffrey Sachs?

• Provision of a broad range of financial services to poor and low-income households

• Provision of financial services only to businesses

• Provision of financial services to wealthy households

• Provision of free loans to all individuals

Which of the following is NOT a characteristic of Microfinance?

• Not a loan for consumption

• Not a cure-for-all for poverty

• Not a service for wealthy individuals

• Not a subsidized credit

Who are the general clients of Microfinance?

• Government officials

• Economically active and entrepreneurial poor

• Wealthy entrepreneurs

• Large corporations

What is one of the principles of Microfinance?

• The poor do not need access to financial services

• The poor have no capacity to repay loans

• Microfinance institutions should not be self-sufficient

• The poor need sustained access to financial services

What is the major goal of outreach in Microfinance?

• To eliminate all forms of debt

• To ensure all clients are educated

• To reach out to poor families and provide them with products

• To provide loans to wealthy families

Which of the following is a feature of Financial Inclusion?

• Exclusivity of financial products

• Presence of a wide range of financial services

• Limited access to financial services

• High costs of financial services

What does Digital Financial Inclusion aim to achieve?

• Digital access to and use of formal financial services

• Increased reliance on physical bank branches

• Access to cash-only services

• Reduction of smartphone usage

What is one benefit of Digital Financial Inclusion?

• Limited access to financial products

• Decreased economic participation

• Greater access to formal financial services

• Increased cash handling costs

According to the 2017 Financial Inclusion Survey, what percentage of Filipino adults have a formal account?

• 10%

• 23%

• 48%

• 59%

What is a challenge faced by Microfinance Institutions globally?

• High repayment rates

• Overwhelming demand for loans

• Limited outreach to the poorest populations

• Excessive funding from partners