Question 1

Which option blocks the poor to get bank loans?

Accepted Answer

Absence of collateral is a primary reason why the poor are often unable to secure bank loans, as they typically lack assets to offer as security.

Question 2

Which of the following takes the decisions regarding loans and savings in a self-help group (SHG)?

Accepted Answer

Group members in a self-help group (SHG) take decisions regarding loans and savings collectively, ensuring democratic and participatory management of their funds.

Question 3

The informal sector loans incorporate _______ .

Accepted Answer

The informal sector loans typically include moneylenders, not formal banking institutions like the State Bank of India or the National Bank for Agriculture and Rural Development (NABARD).

Question 4

A small loan amount given to low-income households or groups is known as ________ .

Accepted Answer

Micro credit is specifically designed to provide small loans to low-income individuals or groups to help them engage in productive activities or grow their small businesses.

Question 5

What is NOT an innovation likely to explain the high repayment rates of microcredit programs?

Accepted Answer

Strong competition between numerous microcredit programs would more likely lead to lower interest rates to attract borrowers, rather than directly influencing high repayment rates. Other options (A, B, D) are strategies that can encourage or enforce high repayment rates.

Question 6

What is NOT a potential limit of group lending?

Accepted Answer

Group lending using social sanctions instead of collateral foreclosure is a feature, not a limitation. It is intended to leverage social pressure to ensure repayment, rather than relying on traditional collateral.

Question 7

What is TRUE of group lending clause?

Accepted Answer

The answer of What is TRUE of group lending clause?
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Question 8

What is NOT a source of difficulty in the estimation of the impact of microfinance projects?

Accepted Answer

Microfinance programs being often targeted to women is not inherently a source of difficulty in estimating their impact. The main challenges in impact estimation stem from issues like counterfactuals (A), selection bias (B), and non-random program placement (C), rather than the demographic focus of the programs.

Question 9

What does the microfinance model Not predict:

Accepted Answer

The answer of What does the microfinance model Not predict:
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Question 10

What is not a mechanism that contributes to the success of Micro- credits?

Accepted Answer

Micro-credits often do not require traditional collaterals as part of their lending model. Instead, they rely on other mechanisms like dynamic incentives, peer monitoring, and regular payment schedules to ensure repayment and operational success.

Question 11

In the self-help group, the loan and saving decisions are taken by

Accepted Answer

In self-help groups, the loan and saving decisions are made collectively by the group members themselves, rather than by external organizations or institutions. This approach empowers members and fosters a sense of ownership and responsibility towards the group's financial activities.

Question 12

Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through

Accepted Answer

Micro credit or micro finance is often extended to the poor through Self Help Groups (SHGs), which are small, informal groups of people who come together to pool their savings and lend to each other.

Question 13

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed ?

Accepted Answer

Microfinance systems were developed to provide loans to poor people who lack traditional collateral and to overcome the high operating costs associated with small loans, thereby enabling financial inclusion for the economically disadvantaged.

Question 14

The following statements are related to Micro Finance System. Locate the wrong option ?

Accepted Answer

All the statements provided are correct in relation to the Micro Finance System. Microfinance indeed focuses on providing microcredit, enabling small savings, facilitating the remittance of funds, is based on the principle of livelihood creation, and involves engaging in routine activities to generate income, both in cash and non-cash forms.

Question 15

Who introduced the concept of Micro Finance in Bangladesh in the form of the "Grameen Bank"? He is the Nobel laureate known by many as the "father of micro finance systems".

Accepted Answer

Muhammad Yunus is recognized for introducing the concept of microfinance in Bangladesh through the establishment of the Grameen Bank, earning him the title of "father of microfinance systems" and a Nobel Peace Prize.

Question 16

The beneficiaries of Micro finance business are _____________

Accepted Answer

Microfinance aims to provide financial services to low-income individuals or those who do not have access to typical banking services, including landless laborers, marginal farmers, and small market vendors.

Question 17

The Micro Finance Institutions (MFI) differ from one another in terms of -

Accepted Answer

Microfinance Institutions (MFIs) can vary widely in their product offerings, loan repayment structures, and other aspects of their operations, making "All of these" the correct answer.

Question 18

Indian Micro Finance Institutes (MFI) usually adopt the group-based lending models, which are of two types. SHG model and JLG model. SHG means Self Help Group and JLG means ?

Accepted Answer

Joint Liability Group (JLG) is the correct term, where members jointly take responsibility for loan repayments.

Question 19

Who launched an 'India Micro-finance Platform', a portal on micro-finance activities across the country, with the assistance of World bank funds on 28^th June 2013 ?

Accepted Answer

SIDBI (Small Industries Development Bank of India) launched the 'India Microfinance Platform' with the assistance of World Bank funds to provide information on microfinance activities across the country.

Question 20

Self Help Group involves

Accepted Answer

Self Help Groups (SHGs) involve a group of 5 to 20 people who come together for a common purpose, which includes regular saving habits and inter-lending within the group members. Therefore, all the options provided are correct aspects of SHGs.

Quiz 1: Microfinance and Self-Help Group Lending

Which option blocks the poor to get bank loans?

Which of the following takes the decisions regarding loans and savings in a self-help group (SHG) ?

The informal sector loans incorporate _______ .

A small loan amount given to low-income households or groups is known as ________ .

What is NOT an innovation likely to explain the high repayment rates of microcredit programs?

What is NOT a potential limit of group lending?

What is TRUE of group lending clause?

What is NOT a source of difficulty in the estimation of the impact of microfinance projects?

What does the microfinance model Not predict:

What is not a mechanism that contributes to the success of Micro- credits?

In the self-help group, the loan and saving decisions are taken by

Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed ?

The following statements are related to Micro Finance System. Locate the wrong option ?

Who introduced the concept of Micro Finance in Bangladesh in the form of the "Grameen Bank"? He is the Nobel laureate known by many as the "father of micro finance systems".

The beneficiaries of Micro finance business are _____________

The Micro Finance Institutions (MFI) differ from one another in terms of -

Indian Micro Finance Institutes (MFI) usually adopt the group-based lending models, which are of two types. SHG model and JLG model. SHG means Self Help Group and JLG means ?

Who launched an 'India Micro-finance Platform', a portal on micro-finance activities across the country, with the assistance of World bank funds on 28^th June 2013 ?

Self Help Group involves

Quiz 1: Microfinance and Self-Help Group Lending

Which option blocks the poor to get bank loans?

Which of the following takes the decisions regarding loans and savings in a self-help group (SHG) ?

The informal sector loans incorporate _______ .

A small loan amount given to low-income households or groups is known as ________ .

What is NOT an innovation likely to explain the high repayment rates of microcredit programs?

What is NOT a potential limit of group lending?

What is TRUE of group lending clause?

What is NOT a source of difficulty in the estimation of the impact of microfinance projects?

What does the microfinance model Not predict:

What is not a mechanism that contributes to the success of Micro- credits?

In the self-help group, the loan and saving decisions are taken by

Micro credit or micro finance is a novel approach to bank with the poor. In this approach bank credit is extended to the poor through

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed ?

The following statements are related to Micro Finance System. Locate the wrong option ?

Who introduced the concept of Micro Finance in Bangladesh in the form of the "Grameen Bank"? He is the Nobel laureate known by many as the "father of micro finance systems".

The beneficiaries of Micro finance business are _____________

The Micro Finance Institutions (MFI) differ from one another in terms of -

Indian Micro Finance Institutes (MFI) usually adopt the group-based lending models, which are of two types. SHG model and JLG model. SHG means Self Help Group and JLG means ?

Who launched an 'India Micro-finance Platform', a portal on micro-finance activities across the country, with the assistance of World bank funds on 28th June 2013 ?

Self Help Group involves

Who launched an 'India Micro-finance Platform', a portal on micro-finance activities across the country, with the assistance of World bank funds on 28^th June 2013 ?