Microfinance

Microfinance is a form of capital that emphasizes sustainability and relationship-based banking, differing from traditional banking by targeting individuals with small loans. It is crucial for the 2.5 billion people without access to traditional banking. Microfinance institutions have grown globally, especially in regions with limited credit access. Key players like Grameen Bank and BRAC have been pivotal. In the US, microfinance helps small businesses through initiatives like the Small Business Administration's opportunity fund.

What is a key characteristic that differentiates microfinance from traditional banking?

• It focuses on relationship-based banking.

• It is primarily profit-driven.

• It offers large loans with long repayment periods.

• It is only available in developed countries.

Why is microfinance considered important for many people worldwide?

• It is only available in the United States.

• It is a new concept that has just been introduced.

• It offers banking services to those without access to traditional banks.

• It provides access to large-scale investments.

How does microfinance differ from conventional banking in terms of loan size?

• Microfinance only offers loans to large corporations.

• Microfinance does not offer loans.

• Microfinance offers loans starting at $100,000.

• Microfinance offers loans as small as $10.

Which regions are experiencing significant growth in the microfinance market?

• North America and Western Europe

• Australia and New Zealand

• Latin America and Eastern Europe

• Sub-Saharan Africa and Asia

Which organization in the US helps bridge the gap for small businesses needing microloans?

• International Monetary Fund

• Federal Reserve

• World Bank

• Small Business Administration