A mother in a developing country wants to borrow the equivalent of $20 to enable her to start a small restaurant run by her family.Which type of financing is she looking to obtain?

Question

Quizplus · Accepted Answer

The mother is looking for a small loan to start her restaurant, which is indicative of a micro loan. Micro loans are typically given to entrepreneurs and small business owners in developing countries who lack access to traditional financing options. Public bond issues and IPOs are methods of raising large amounts of capital for established companies, while futures contracts are derivatives used to hedge against fluctuations in commodity prices.

A Mother in a Developing Country Wants to Borrow the Equivalent