Question 1

Which of the following exemplifies benefits of microcredit programs which would be considered a spillover effect?

Accepted Answer

A)   A small village's telecommunication services improves as a result of a micro-entrepreneur selling time on a cell phone
B)   A microloan allows a farmer to purchase better equipment which raises his income
C)   A household uses a microcredit program to save a sick family member
D)   A household uses a micro loan to pay off a higher interest loanE) B) and C)
F) A) and B)

Question 2

Microfinance programs were first created by Nobel prize winning economist Muhamed Yunus in what decade?

Accepted Answer

A)   1950's
B)   1960's
C)   1970's
D)   1990'sE) A) and B)
F) A) and C)

Question 3

All of the following lending practices have been undertaken by MFIs to lower costs of microlending except

Accepted Answer

A)   Offering borrowers a series of loans that grow larger with each repayment
B)   Offering 0% interest rates on loans
C)   Group liability lending
D)   Requiring borrowers to begin repaying the loans soon after taking them outE) B) and C)
F) None of the above

Question 4

Most microfinance programs are loans consisting of?

Accepted Answer

A)   A single loan
B)   A larger loan than is typically given out in a commercial bank
C)   A series of loans that are increasing in size
D)   An indefinite series of loans that remains the same size over timeE) B) and D)
F) A) and C)

Question 5

As interest rates increase the cost of borrowing_____,profit for microenterpirses_____ and participation in microfinance programs__________?

Accepted Answer

A)   increases; increases; increases
B)   increases; decreases; decreases
C)   decreases; decreases; increases
D)   increases; stays the same; decreasesE) A) and B)
F) A) and C)

Question 6

Contemporary microfinance programs are incredibly diverse which of the following are the same for all MFIs?

Accepted Answer

A)   Eligibility
B)   Types and sizes of loans
C)   Recruitment practices
D)   Goal is to improve lives of poor peopleE) A) and B)
F) B) and C)

Question 7

An unintended consequence of a new microcredit program is that it makes it more difficult for other lenders to determine if potential borrowers are already deeply indebted and?

Accepted Answer

A)   Allows borrowers to default without losing access to future credit
B)   Allows low income families a way to climb out of poverty
C)   Allows households to plan for a major event such as paying a dowry without having to sell of assets
D)   If the loan is given to women can increase their status in the family or the communityE) B) and C)
F) A) and D)

Question 8

Why might a government intervene in a fully sustainable MFI?

Accepted Answer

A)   Being profitable doesn't guarantee the credit services are being supplied in a socially optimum way
B)   To save scarce resources for other purposes
C)   To add competition to existing commercial banks
D)   To avoid bankruptcyE) A) and D)
F) None of the above

Question 9

It has been argued that MFI's goal should be to achieve commercialization,discuss the benefits and costs of pursuing a microcredit program that is fully sustainable.

Accepted Answer

According to the Consultative Group to A...

Exam 21: Microfinance

Which of the following exemplifies benefits of microcredit programs which would be considered a spillover effect?

Correct Answer
verified

Contemporary microfinance programs are incredibly diverse which of the following are the same for all MFIs?

Correct Answer
verified

As interest rates increase the cost of borrowing___,profit for microenterpirses_ and participation in microfinance programs________?

Correct Answer
verified

All of the following lending practices have been undertaken by MFIs to lower costs of microlending except

Correct Answer
verified

Why might a government intervene in a fully sustainable MFI?

Correct Answer
verified

Most microfinance programs are loans consisting of?

Correct Answer
verified

Microfinance programs were first created by Nobel prize winning economist Muhamed Yunus in what decade?

Correct Answer
verified

It has been argued that MFI's goal should be to achieve commercialization,discuss the benefits and costs of pursuing a microcredit program that is fully sustainable.

Correct Answer
verified
According to the Consultative Group to A...
View Answer

An unintended consequence of a new microcredit program is that it makes it more difficult for other lenders to determine if potential borrowers are already deeply indebted and?

Correct Answer
verified

Exam 21: Microfinance

Which of the following exemplifies benefits of microcredit programs which would be considered a spillover effect?

Correct AnswerverifiedShow Answer

Contemporary microfinance programs are incredibly diverse which of the following are the same for all MFIs?

Correct AnswerverifiedShow Answer

As interest rates increase the cost of borrowing_____,profit for microenterpirses_____ and participation in microfinance programs__________?

Correct AnswerverifiedShow Answer

All of the following lending practices have been undertaken by MFIs to lower costs of microlending except

Correct AnswerverifiedShow Answer

Why might a government intervene in a fully sustainable MFI?

Correct AnswerverifiedShow Answer

Most microfinance programs are loans consisting of?

Correct AnswerverifiedShow Answer

Microfinance programs were first created by Nobel prize winning economist Muhamed Yunus in what decade?

Correct AnswerverifiedShow Answer

It has been argued that MFI's goal should be to achieve commercialization,discuss the benefits and costs of pursuing a microcredit program that is fully sustainable.

Correct AnswerverifiedAccording to the Consultative Group to A...View AnswerShow Answer

An unintended consequence of a new microcredit program is that it makes it more difficult for other lenders to determine if potential borrowers are already deeply indebted and?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

As interest rates increase the cost of borrowing___,profit for microenterpirses_ and participation in microfinance programs________?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
According to the Consultative Group to A...
View Answer

Correct Answer
verified