Microloans and Global Interconnectedness Quiz

What has been a major factor in increasing global interconnectedness in recent decades?

• The rise of traditional banking systems

• The development of modern communication and transportation technologies

• The decline of international trade

• The increase in global population

What role does the internet play in global interconnectedness?

• It replaces traditional forms of communication entirely

• It enables unprecedented levels of interaction among individuals worldwide

• It only benefits large corporations

• It limits interactions to only local communities

What is a key characteristic of microloans?

• They are always backed by collateral

• They are typically large sums of money

• They are issued directly to borrowers without traditional banks

• They are only available in developed countries

Why might microloans have higher interest rates than traditional loans?

• They are always issued by banks

• They are only available to wealthy individuals

• They are typically backed by collateral

• They involve higher risk for lenders

Who developed the modern model of microfinance?

• Bill Gates

• Elon Musk

• Muhammad Yunus

• Warren Buffet

What was the initial focus of the Grameen Bank model?

• Providing loans to male entrepreneurs

• Offering large loans to established businesses

• Distributing small loans to female entrepreneurs with no collateral

• Investing in real estate

What is a common criticism of microloans?

• They are too long-term

• They require no repayment

• They often require borrowers to make initial payments soon after issuance

• They are only available to male entrepreneurs

What challenge does the microloan industry face as it expands?

• Maintaining regular interpersonal communication

• Reducing the number of borrowers

• Decreasing interest rates

• Increasing loan amounts

How can individuals support local entrepreneurs according to the video?

• By only supporting established businesses

• By avoiding any financial interactions

• By providing small loans to help them get started

• By investing in large corporations

What potential impact could increased competition among loan providers have on microloans?

• It could eliminate the need for loans

• It could lower the interest rates

• It could decrease the availability of loans

• It could increase the interest rates