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Questions and Answers
What is the main focus of microfinance services?
What does microfinance include?
What is the objective of microfinance as a larger movement?
What were the two main mechanisms for delivering financial services to microfinance clients initially?
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What is an example of a microfinance institution mentioned in the text?
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Study Notes
Microfinance Overview
- The main focus of microfinance services is to provide financial assistance to low-income individuals, families, and enterprises who lack access to traditional banking services.
Inclusions of Microfinance
- Microfinance includes a range of financial services, such as microcredit, savings, insurance, and remittances.
Objective of Microfinance
- The objective of microfinance as a larger movement is to promote economic development and poverty reduction by increasing access to financial services for marginalized communities.
Initial Mechanisms for Delivering Financial Services
- Two main mechanisms for delivering financial services to microfinance clients initially were:
- Group lending, where individuals form groups to guarantee each other's loans
- Village banking, where a community deposits savings into a collective fund and uses it to make loans to members
Example of Microfinance Institution
- An example of a microfinance institution mentioned in the text is Grameen Bank, which is a pioneering microfinance organization that provides financial services to rural communities in Bangladesh.
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Description
Test your knowledge of microfinance with this quiz! Explore topics such as microcredit, savings accounts, microinsurance, and more. Learn about the financial services designed to reach individuals and small businesses who lack access to traditional banking.
