Microfinance Models Quiz

What is the primary focus of the compliance system in microfinance institutions?

• To reduce employee turnover

• To identify and mitigate business risks

• To enhance customer service

• To increase profits

Which of the following is NOT a benefit of internal control and management systems?

• Improves decision-making

• Increases operational costs

• Promotes fraud prevention

• Enhances financial performance

What is one of the learning outcomes of the module on internal control and management systems?

• Identifying causes of fraud

• Learning about customer service

• Exploring marketing strategies

• Understanding the history of microfinance

What type of risks does the compliance system aim to mitigate?

• Business risks

• Credit risks

• Market risks

• Operational risks

How often is the regular audit conducted for all bank branches?

• Annually

• Monthly

• Twice a year

• Quarterly

Who is responsible for identifying risks at their levels in microfinance institutions?

• The clients

• The external auditors

• The unit head/supervisors

• The board of directors

What is the role of the internal audit function in a bank?

• To increase loan disbursements

• To handle marketing strategies

• To provide assurance on the internal control system

• To manage customer relations

Which of the following is a common fraud committed by loan officers?

• Providing loans to ghost clients

• Offering discounts on loans

• Conducting customer surveys

• Increasing interest rates

What is a key feature of internal controls?

• Loan disbursement

• Management oversight

• Customer satisfaction

• Marketing strategies

What does the term 'dual control' refer to in internal control practices?

• Two people must authorize transactions

• One person handles all transactions

• No controls are in place

• Only management can authorize transactions