The practice of lending very small amounts of money, without collateral, and accepting small savings deposits is known as
A) microfinance.
B) capital flight.
C) debt rescheduling.
D) a stabilization program.

Question

Quizplus · Accepted Answer

Microfinance refers to the provision of financial services, including loans, savings, insurance, and sometimes payment services, to individuals or small businesses who lack access to traditional banking services, typically because of poverty or the absence of a credit history. These loans are usually for small amounts, do not require collateral, and aim to help recipients start or expand small businesses, thereby improving their economic status.

The Practice of Lending Very Small Amounts of Money, Without