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 is referred to as
A)macrofinance.
B)microfinance.
C)microcapitalization.
D)macrocapitalization.
E)megafinance.

Question

Quizplus · Accepted Answer

The practice described is referred to as microfinance, which specifically involves offering small loans to individuals who do not have access to traditional banking services. This has become an important tool for promoting economic development and poverty reduction in many parts of the world. The other choices are not accurate descriptions of this practice.

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