Finance and Development Chapter 9
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Questions and Answers

What approach to corporate governance did the country adopt?

  • Mandatory compliance with all code provisions
  • Voluntary disclosure of company situation
  • Forced compliance with OECD principles
  • Comply or explain approach (correct)

    • Why do traditional financial institutions often deny access to low-income individuals?

  • Because of the short repayment periods
  • Because of the high risk of lending
  • Because of the perceived risk or relatively low balances (correct)
  • Because of the high interest rates

    • What is a common characteristic of the income flows of the poor?

  • High, regular, and predictable
  • Low, irregular, and unpredictable (correct)
  • High, irregular, and predictable
  • Low, regular, and predictable

    • What is one way that low-income individuals often source pecuniary or in-kind support?

    <p>From family, friends, or remittances</p> Signup and view all the answers

    What is the relationship between microfinancing and economic growth according to SainzFernandez's 2018 study?

    <p>High economic growth has a positive influence on the microfinance sector</p> Signup and view all the answers

    What is the primary focus of microfinance institutions?

    <p>Providing financial services to low-income individuals</p> Signup and view all the answers

    What is a characteristic of microcredit?

    <p>It does not require collateral</p> Signup and view all the answers

    Who is the proponent of microcredit?

    <p>Muhammad Yunus</p> Signup and view all the answers

    What is the purpose of microcredit?

    <p>To provide financial assistance to the poor</p> Signup and view all the answers

    What is a common feature of ROSCAs?

    <p>They are informal financial institutions</p> Signup and view all the answers

    Why are interest rates on microcredits relatively high?

    <p>Because of the risk of non-repayment</p> Signup and view all the answers

    What is the goal of microcredit organizations?

    <p>To provide loans to those who can afford to repay</p> Signup and view all the answers

    What is the term used in India to refer to ROSCAs?

    <p>Chit fund</p> Signup and view all the answers

    How does an Auction ROSCA differ from a Random ROSCA?

    <p>In an Auction ROSCA, the one who bids the highest gets the pooled amount first.</p> Signup and view all the answers

    What is the primary influence on financial inclusions in Islamic banking countries?

    <p>Macroeconomic factors</p> Signup and view all the answers

    What is the foundation of the Islamic finance model?

    <p>The Koran and the Sunna</p> Signup and view all the answers

    What is the name of the ROSCA in the Philippines?

    <p>Paluwagan</p> Signup and view all the answers

    What is the primary goal of a well-functioning Islamic financial system?

    <p>To promote economic growth</p> Signup and view all the answers

    What is the primary objective of financial systems?

    <p>To transform short-term liabilities into long-term assets</p> Signup and view all the answers

    What is a key role of finance in achieving sustainability?

    <p>To rebuild and adapt the financial system to specifics of sustainable development</p> Signup and view all the answers

    What is the relationship between financial development and income inequality according to Thang et al (2019)?

    <p>Income inequality rises at the early stage of financial development and falls after a certain level is achieved</p> Signup and view all the answers

    What is the significance of finance in economic growth and development?

    <p>It is an efficient mechanism for sustainable economic growth and development</p> Signup and view all the answers

    What is one of the roles of finance according to the text?

    <p>To screen and monitor investments</p> Signup and view all the answers

    What is described as one-dimensional?

    <p>Modern financial systems</p> Signup and view all the answers

    What is the Islamic finance model bound by?

    <p>Conventional body of rules and regulations, as well as historical, social and economic context</p> Signup and view all the answers

    In the Gulf Cooperating Countries (GCC), what is the relationship between adopting Islamic finance and economic growth?

    <p>Direct relationship</p> Signup and view all the answers

    What is the role of Islamic banks in addressing financial crises?

    <p>They reduce the severity of the crisis</p> Signup and view all the answers

    What is the main contribution of the Philippines to Islamic finance?

    <p>Its Halal industry</p> Signup and view all the answers

    What is the result of having knowledge of the Halal concept on one's agreement with the active role of Islamic finance?

    <p>More agreement</p> Signup and view all the answers

    What is the ultimate goal of fostering synergy between Islamic finance and the development of Halal tourist products?

    <p>To contribute to economic growth and development</p> Signup and view all the answers

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