What keeps members contributing to a rotating credit association?
A) There is strong social pressure to keep paying regularly.
B) They complete legal paperwork requiring a steady commitment.
C) If members quit after receiving their payment, they have to pay the money back.
D) Membership in a rotating credit association is nonvoluntary.

Question

Quizplus · Accepted Answer

Social pressure is a powerful motivator for members of a rotating credit association to keep contributing regularly. The fear of losing face in the community or being seen as untrustworthy can be a strong incentive to keep up with payments. This is one of the main reasons why these associations are often successful in low-income communities where formal banking systems may not be accessible or trusted.

What Keeps Members Contributing to a Rotating Credit Association