16 Questions
What is the goal of microfinance?
The goal of microfinance is to empower individuals and communities by providing them with the means to generate income, build assets, and improve their overall economic well-being.
What are the key features of microfinance?
The key features of microfinance include small loan amounts, savings accounts, insurance products, financial inclusion, and a social mission.
What types of financial services does microfinance provide?
Microfinance provides small-scale financial services such as small loans, savings accounts, and insurance products.
What is the significance of savings accounts in microfinance?
Savings accounts in microfinance allow clients to save small amounts of money securely, helping them build financial assets over time.
How does microfinance promote financial inclusion?
Microfinance promotes financial inclusion by extending financial services to those who are excluded from the formal banking sector, especially in developing countries.
What social mission do many microfinance institutions have?
Many microfinance institutions have a social mission to alleviate poverty, empower women, and promote sustainable development.
What approach does microfinance sometimes employ, where individuals form small groups and are jointly responsible for each other's loans?
Group lending approach
In which decade did the modern microfinance movement become associated with the establishment of the Grameen Bank in Bangladesh?
1970s
Who is often considered the father of microfinance?
Muhammad Yunus
What are some of the criticisms and challenges faced by microfinance?
High interest rates, over-indebtedness, and the sustainability of certain microfinance models.
What significant event led to the spread of microfinance initiatives in other parts of the world, following the success of the Grameen Bank model?
The United Nations declaring 2005 as the International Year of Microcredit
What is the main strategy employed by microfinance for poverty alleviation, especially in developing countries?
Providing small loans, known as microcredit, to poor individuals
Who was involved in providing small loans to impoverished communities in East Pakistan (now Bangladesh) in the 1950s and 1960s?
Dr. Akhtar Hameed Khan
What approach does microfinance take towards marginalized populations, such as rural populations and women entrepreneurs?
It often targets them
What period saw the commercialization of microfinance, with some institutions adopting a for-profit model?
1990s
What is the system that fosters a sense of community and social support in microfinance?
Group lending approach
Test your knowledge about the concept, features, and impact of microfinance, a financial service model that aims to empower low-income individuals and communities by providing them with small-scale financial services. Explore the key features, benefits, and challenges of microfinance.
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