QUIZ 1

Individual model does not include the formation of groups or generating peer pressures to ensure repayment.

• TRUE

• FALSE

  ASA model features include a group liability approach, withdrawable savings, systems compliant with accounting standards, and easy to audit and detect fraud.

• FALSE

• TRUE

CARD-MRI model is a straight-forward credit lending model where microloans are given directly to the borrower.

• FALSE

• TRUE

A group of five prospective borrowers is formed in ASA model in which only two of them are eligible for and received a loan in the first stage.

• TRUE

• FALSE

Village banking model is very much like associations and Community Banks except that their ownership structure does not include the poor.

• TRUE

• FALSE

Group members in cooperative are jointly accountable for the repayment of each other’s loans and usually meet weekly to collect repayments.

• TRUE

• FALSE

CARD-MRI Model is the most prevalent microfinance delivery in the world because of its high focus on standardization, discipline, and poverty eradication programs.

• TRUE

• FALSE

Loans in village banking are backed up by goods or property as collateral if the borrower becomes default.

• TRUE

• FALSE

   Community banking is usually formed by extensive help from NGOs and other organizations who also train community members in various financial activities.

• TRUE

• FALSE

Credit Unions is a democratic, not-for-profit, and financial cooperative organized by and composed of members of a group or organization. They agree to save their money together and to make loans to each other at reasonable rates of interest.

• TRUE

• FALSE