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WorksheetsFinancial Capital Quiz
Total questions: 16
Worksheet time: 8mins
One of the main challenges facing underserved communities is the lack of access to financial __________, which limits local businesses, homeownership, and overall community development.
Capital
Equity
Debt
Credit
A __________ __________ Financial Institution (CDFI) is a specialized organization that provides credit and financial services to underserved markets and populations.
Community Development Credit Unions (CDCUs) are nonprofit cooperatives that serve low-income areas and are governed by a __________-elected board of directors.
Equity Capital refers to what?
Long-term investments that give the investor an ownership stake in a business.
__________ Development Accounts (IDAs) are matched savings accounts that help low-income individuals save money for important purchases like homes, education, or starting a business.
Inclusive
Independent
Individual
Industry
The __________ __________ Act (CRA) was designed to address discriminatory practices like redlining, encouraging banks to meet the credit needs of all the communities they serve, especially low-income areas.
Community Renewal
Community Reinvestment
Community Revival
Another source of external credit for specialized needs like worker-owned firms is the __________ __________ Bank, which provides funding to cooperatives and businesses owned by employees.
Worker Cooperative
Employee Ownership
National Cooperative
Community Investment
Debt Capital refers to what?
Short-term loans that must be repaid with interest.
Who can pressure local credit institutions to invest more in their communities, often using the CRA as leverage?
Community Development Credit Unions
Community Based Organizations
What do Microenterprise loan funds do?
Microenterprise loan funds only support non-profit organizations.
Provide capital to individuals or businesses that might not qualify for loans from traditional financial institutions.
Venture Capital refers to?
A loan provided by banks for personal use.
Investments in new and innovative businesses with the potential for high returns.
The Lower East Side People’s Federal Credit Union is an example of what kind of organization?
CDCU
Which financial tool is used to promote development by freezing property taxes in designated areas and using the increased revenue from development to pay for project costs.
Urban Renewal Grant
Tax Increment Financing (TIF)
What is the term for people that target vulnerable populations with high-interest loans, abusive terms, and hidden fees, causing long-term financial harm.
Which Informal credit sources invests in small businesses in exchange for ownership equity, can bridge the gap between loans from family and formal venture capital?
If James steals $100 from Target, then uses the money to buy $70 worth of groceries and receives $30 in change, how much money did Target lose in total?
100
130
