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 a business. Micro loans are small loans given to individuals, usually in developing countries, to help them start or grow their businesses. Public bond issues and IPOs are typically used by larger companies to raise significant amounts of capital. Futures contracts on commodities are used by traders to hedge against future price fluctuations.

A Mother in a Developing Country Wants to Borrow the Equivalent