Microfinance Quiz practice

What does financial inclusion aim to provide to individuals and businesses?

Access to only savings and credit services
Access to limited financial services
Access to only insurance and payment services
Access to useful and affordable financial products and services (correct)

What is the primary function of payment and remittance services?

To facilitate the transfer of money (correct)
To grant microcredit to small farmers
To provide microinsurance to low-income clients
To offer microsavings products

What is the main goal of microfinance?

To provide financial services only to low-income individuals
To provide financial services only to microenterprises
To provide large loans to businesses
To help people become self-sufficient and improve their standard of living (correct)

What is the main goal of microfinance in agricultural development?

To promote sustainable agricultural practices (B) Signup and view all the answers

What is the benefit of microfinance according to the BSP?

It raises the per capita income and promotes gender equality (A) Signup and view all the answers

What is a subset of microfinance?

Micro-credit (also called micro-loan) (C) Signup and view all the answers

What is the name of the act that refers to the Microfinance NGOs Act?

R.A. 10693 (B) Signup and view all the answers

Which of the following is NOT a challenge in farmers' access to microfinance?

High demand for microcredit (C) Signup and view all the answers

What is one of the financial services offered by microfinance?

Money transfers (B) Signup and view all the answers

Who do microfinance services primarily target?

Low-income households and micro-enterprises (D) Signup and view all the answers

What is the primary focus of microsavings products?

To tailor products for low-income clients (A) Signup and view all the answers

What is the term for the process of giving official recognition to a duly registered Microfinance NGO?

Accreditation (D) Signup and view all the answers

What is the term for the proportion of the total loan of a microfinance client?

Compensating Balance (B) Signup and view all the answers

What is the term for the income of individuals or families that fall below the low-income threshold?

Low-Income (C) Signup and view all the answers

What is the term for the loan contracted by a member of a group of microfinance clients whose loan is guaranteed by the group of members collectively or by any member/s of the group?

Group Loan (C) Signup and view all the answers

What is the term for the gross interest income, penalties, surcharges, commissions and discounts, service and general fees, and other charges related to microfinance operations actually or constructively received without any deduction of any kind or nature?

Gross Receipts (B) Signup and view all the answers

What does BSP stand for?

Bangko Sentral ng Pilipinas (C) Signup and view all the answers

What is the primary purpose of microfinance?

To provide small loans to poor and low-income individuals (C) Signup and view all the answers

What is a characteristic of microfinance loans?

Not requiring collateral or assets (C) Signup and view all the answers

What is the focus of individual lending in microfinance?

On the creditworthiness of an individual (B) Signup and view all the answers

What is the primary difference between formal and informal credit?

Paperwork and rules (C) Signup and view all the answers

When did microfinance start?

In the 1970s (D) Signup and view all the answers

What is the purpose of group lending in microfinance?

To provide loans to groups of people who guarantee each other's loans (B) Signup and view all the answers

What is the primary objective of the BSP Financial Consumer Protection Framework?

To promote broad and convenient access to high quality financial services (A) Signup and view all the answers

What is the principle that ensures financial consumers are treated fairly and honestly?

Disclosure and Transparency (B) Signup and view all the answers

What is the goal of digital finance advocacies in the Philippines?

To democratize access to a transaction account (C) Signup and view all the answers

What is the hindrance to the development of the country's agriculture and MSME sectors?

Lack of access to financing (A) Signup and view all the answers

What is the purpose of providing accessible and efficient means for resolving complaints with financial transactions?

To ensure fair treatment of financial consumers (A) Signup and view all the answers

What is the role of financial education and awareness in the BSP's commitment to financial consumers?

To empower financial consumers to make informed decisions (D) Signup and view all the answers