practice of offering small,collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities,is referred to as
A) macrofinance.
B) microfinance.
C) microcapitalization.
D) macrocapitalization.
E) megafinance.

Question

Quizplus · Accepted Answer

Microfinance is the practice of providing small loans without collateral to individuals who lack access to traditional financing. This approach focuses on supporting small businesses and income-generating activities in developing countries, helping to reduce poverty and promote economic growth. Macrofinance, microcapitalization, and megafinance are not valid terms within the context of microfinance.

Practice of Offering Small,collateral-Free Loans to Individuals Who Otherwise Would