Microfinance refers to
A) the 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 in exchange for a percentage of future profits rather than repaying of loans.
B) the 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.
C) the lending of money contingent upon a daily accounting of all expenditures made and all income generated.
D) the day-to-day expenses such as coffee for the office, flowers for anniversaries, etc. that are considered too small or too insignificant to be itemized and instead are listed as discretionary funds.
E) the expenditures within an individual household assigned to each individual family member whether they personally generate income or not.

Question

Quizplus · Accepted Answer

Microfinance refers to the 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. It is aimed at helping the poor and disadvantaged segments of society by providing financial services such as microloans, microinsurance, microsavings, and financial education. The loans are usually provided to people who lack credit history or collateral and can help them start or expand small businesses, leading to increased income and better living standards.

Microfinance Refers to