A ROSCA (Rotating Savings and Credit Association) is a communal lending system where a group of individuals pool their savings and take turns borrowing from the group. This is a common practice in developing countries where access to formal banking systems is limited.

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A ROSCA Is A(n)

Question 44

Multiple Choice

A ROSCA is a(n)

A) Italian banking system allowing loans to small businesses.
B) financial intermediary among major European nations facilitating Euro transfers.
C) old Soviet-style central banking system.
D) communal system of lending in developing countries.
E) alternative to FDIC insurance.

Correct Answer: