EMI2

Which of the following best distinguishes microfinance from traditional banking?

• Microfinance institutions operate under stricter government regulations.

• Microfinance institutions focus on providing large-scale loans to enterprises.

• Microfinance emphasizes accessibility and sustainability for low-income clients.

• Microfinance prioritizes profit maximization over outreach.

Among the goals of microfinance, which one primarily ensures the continuity of services to future clients?

• Impact

• Outreach

• Sustainability

• Environmental responsibility

The term “impact” in microfinance goals refers to:

• The number of loans distributed annually.

• The changes in clients’ lives and communities.

• The revenue growth of microfinance institutions.

• The environmental benefits of microfinance activities.

Which statement most accurately reflects the role of microfinance in development?

• It replaces government welfare programs.

• It primarily benefits large corporations through tax incentives.

• It offers financial tools that empower poor individuals

• It focuses on providing free financial aid to the poor.

Which of the following combinations correctly represents the four main goals of microfinance mentioned in the material?

• Outreach, Impact, Sustainability, and Sustainable Environment

• Growth, Savings, Inclusion, and Empowerment

• Innovation, Profit, Efficiency, and Equality

• Access, Awareness, Support, and Regulation

According to Ghandi (2021), which advantage of microfinance has the most long-term potential for poverty reduction?

• Encouraging savings

• Offering short-term loans

• Reducing government involvement

• Supporting urban infrastructure projects

Which of the following best describes the philosophy behind microfinance lending methodologies?

• Clients must provide high-value collateral.

• Borrowers’ repayment capacity is measured solely by income statements.

• Trust and social accountability substitute for physical collateral.

• Loans are extended only to government employees.

According to Howard Schultz, innovation must be “disruptive.” What does this imply in a microfinance context?

• It should completely replace existing institutions.

• It should challenge traditional systems to create value.

• It must follow the same principles as corporate innovation.

• It should disrupt loan repayment schedules.

Sullivan (2008) emphasized that innovation applies to all types of organizations because:

• It focuses mainly on product improvement.

• Every institution can add value through new methods.

• Innovation is limited to the technology sector.

• Only profit-oriented organizations can sustain innovation.

Which of the following statements distinguishes innovation from invention?

• Innovation involves creating something entirely new from scratch.

• Invention focuses on market application, while innovation focuses on discovery.

• Innovation adds customer value by improving or introducing ideas.

• They are identical processes in all organizational contexts.