Applying for a loan in five-person groups is an example of:

Question

Quizplus · Accepted Answer

Applying for a loan in five-person groups is an example of group responsibility, where individuals come together to secure a loan and share the responsibility of repaying it. This approach is commonly used in microfinance and community lending initiatives. It is not family and friends lending or party of five lending, which are not specific terms used in finance. Trade-off refers to making a difficult decision by sacrificing one thing for another.

Applying for a Loan in Five-Person Groups Is an Example