Microfinance and Poverty Alleviation Quiz

Microfinance aims to alleviate poverty by providing financial services to those lacking access to traditional banking.

Microfinance targets the financially excluded, offering them access to credit, savings, and insurance services.

Microfinance institutions prioritize social impact and poverty alleviation over purely financial returns when serving the poor.

Bangladesh is frequently cited as a successful case of microfinance-led poverty reduction, notably through initiatives like the Grameen Bank.

SDG 1 aims to end poverty in all its forms, making it closely aligned with the objectives of microfinance in poverty alleviation and economic empowerment.

Microfinance encompasses the provision of financial services, including credit, savings, and insurance, to those in low-income and rural areas, fostering economic inclusion and development.

Savings accounts are commonly used in microfinance to promote financial inclusion and savings habits.

Muhammad Yunus is credited with pioneering microfinance and founding the Grameen Bank in Bangladesh.

APR represents the annualized cost of borrowing, including interest rates and fees, and is crucial for comparing loan offers.

Microfinance can empower women by providing access to financial resources, enabling them to start businesses and gain economic independence.

SMEs are small and medium-sized enterprises that often receive financial support from microfinance institutions to grow their businesses.

Microfinance institutions often grapple with challenges such as sustainability, reaching remote populations, and ensuring client protection.

Group lending involves providing loans to a group of individuals who collectively guarantee repayment, fostering social cohesion and accountability.

ROSCA refers to a form of informal savings and credit arrangement where members contribute regularly to a pool, from which they can borrow in turns.

The Grameen Foundation, founded by Muhammad Yunus, received the Nobel Peace Prize for its pioneering work in microfinance.

Microfinance Plus involves providing a suite of financial services beyond just credit, catering to the diverse needs of the poor.

Step-Up Microcredit allows borrowers to access larger loans as they demonstrate creditworthiness through timely repayment.

Client Profiling involves gathering information about clients' financial needs, behaviors, and risks to tailor services effectively.