Lesson 1

Question 1

Microfinance is a _____ provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services

Answer 1

banking service

Question 2

allows people to take on reasonable small business loans safely, and in a manner that is consistent with ethical lending practices.

Answer 2

Microfinance

Question 3

a financial operation that provides small loans to struggling businesspeople in order to expand their small enterprises.

Answer 3

Microfinance

Question 4

Microfinance utilizes ______, usually administered by small scale money lenders

Answer 4

informal money lending technologies

Question 4

Microfinance utilizes ______, usually administered by small scale money lenders

Answer 4

informal money lending technologies

Question 5

instituted to give loans that will be quick, convenient, and flexible, required to accommodate their clientele

Answer 5

Microfinance

Question 6

Microfinance originally started with _____, which is the practice of providing extremely small loans to those who do not have a steady source of income, collateral, or any credit history

Answer 6

microcredit

Question 7

Microfinance aims to support and kickstart _____ who do not have the financial backing to begin a small business or capitalize on an idea.

Answer 7

entrepreneurs

Question 8

Micro-Financing Institutions (MFIs) is initially created for _____ application but are slowly making their way into the developed world

Answer 8

Third World

Question 9

an emerging industry throughout the world

Answer 9

Micro-Financing Institutions (MFIs)

Question 10

Micro-Financing Institutions (MFIs) mission is to alleviate poverty by targeting the poorest sector of the population, the_____, and ____ especially

Answer 10

bottom 20 percent, women

Question 11

designed to motivate target clients and inspire the development of their product

Answer 11

Micro-Financing Institutions (MFIs)

Question 12

profit is not the goal for this type of organization (MFIs); ______ is

Answer 12

sustainability

Question 13

______will enable a MFI to expand its operation at a sustainable rate and also reach all those who are in need

Answer 13

Self-financing

Question 14

Microfinance includes a number of services, such as _____, _____, ______, ____,_____ and ____. (SCFMM)

Answer 14

savings accounts
checking accounts
fund transfers
microinsurance
microcredit.

Question 15

its goal is to provide financial services to help encourage entrepreneurs in impoverished nations to act on their ideas and obtain the financial tools available to do so and to eventually become self-sustainable

Answer 15

Microfinance

Question 16

a few more of microfinance’s overarching goals include (3) (PDB)

Answer 16

a. to promote economic development,
b. decrease unemployment, and
c. boost small businesses.

Question 17

some microfinance institutions provide _____and _____ in order to best position their clients for starting up a small business or to act efficiently as an entrepreneur.

Answer 17

financial and business education

Question 18

Banking for individual entrepreneurs and small businesses revolved around _____

Answer 18

relationship-based banking.

Question 19

______, where multiple individuals come together to form a group to collectively apply for a loan.

Answer 19

Services for a group

Question 20

TRUE or FALSE

When applying for microcredit, individuals may not get a large loan thus, they may decide to come together and form a group to qualify for a larger loan.

Answer 20

TRUE

Question 21

Upon the creation of microcredit by Bangladeshi social entrepreneur ____ in 1983, microfinance was simultaneously created

Answer 21

Muhammad Yunus

Question 22

In ____, Yunus established _____ in Bangladesh.

Answer 22

1983, Grameen Bank

Question 23

The goal of Grameen Bank was to initially provide _____

Answer 23

small loans to entrepreneurs.

Question 24

What inspired Yunus to have a vision for microcredit?

Answer 24

when he witnessed women who made bamboo stools in Bangladesh making two cents a day

Question 25

He decided that if the women were able to fall back on a loan, they would be able to improve their margins and gain a more substantial profit. After issuing them a loan of $27, following the ____, the women were able to repay the loan and keep their business running.

Answer 25

group model

Question 26

states that the borrower must set aside a portion of profits in a savings account with the financial institution to be held as collateral until the loan is paid

Answer 26

loan covenant

Question 27

it provides some protection for creditors, and if the loan is repaid, the borrower would’ve earned savings interest on the money that was deposited in the savings account

Answer 27

loan covenant

Question 28

In 2006, Yunus received the ____ for his efforts with Grameen Bank.

Answer 28

Nobel Peace Prize

Question 29

The bank currently oversees _____operational locations and employs about ____ individuals. Furthermore, there are currently ____ microfinance institutions.

Answer 29

2,500 22,000 10,000

Question 30

PROS OR CONS it provides financial opportunities for those in impoverished nations or those with lower socioeconomic backgrounds

Answer 30

PROS

Question 31

PROS OR CONS it encourages people to be financially independent and provides them financial resiliency to be able to cover any large unforeseen expenses

Answer 31

PROS

Question 32

PROS OR CONS it helps to provide financial services to those in remote locations where traditional financial institutions do not have operations

Answer 32

PROS

Question 33

PROS OR CONS it also provides education

Answer 33

PROS

Question 34

PROS OR CONS it can encourage entrepreneurial activity and business development in poverty-stricken areas.

Answer 34

PROS

Question 35

PROS OR CONS it can take advantage of those in tough economic situations, a situation similar to loan sharks. Some microfinance loans may include interest that can be as high as 30% or even higher

Answer 35

CONS

Question 36

PROS OR CONS according to several studies, recipients of microfinance loans did not realize an improvement in their annual net income.

Answer 36

CONS

Question 37

A Micro, Small, and Medium Enterprise in the Philippines is defined as any business activity or enterprise engaged in industry, agri-business and/or services that has ____and ____

Answer 37

(1) an asset size (less land) of up to PhP100 million (2) an employment size with less than 200 employees.

Question 38

is known globally as the “grassroots” of microfinance models

Answer 38

Grameen Bank model

Question 39

Grameen Bank originated in _____ by Professor Mohammed Yunus during the early 1970s

Answer 39

Bangladesh

Question 40

It has provided more than $2.1 billion in loans to approximately ____ people, ____ percent have been women.

Answer 40

2 million 94 percent

Question 41

Grameen Bank, Bangladeshi bank founded by economist Muhammad Yunus as a means of providing ____ to poor individuals

Answer 41

small loans

Question 42

During the training, they learn about the Grameen Method and formally organize a group of ____. _____members are then issued small loans. These groups must meet once a ____ to repay the loans. With each loan successfully repaid, this increases the number of ____who may borrow and the amount of each loan.

Answer 42

five two week members

Question 43

Give the 3P's

Answer 43

profit people planet

Question 44

What does CSR means?

Answer 44

Corporate Social Responsibility

Question 45

Happens when something is given to people without demanding a payment

Answer 45

Dole Out

Question 46

What does MSME means?

Answer 46

micro small medium enterprises

Question 47

What does TBL means?

Answer 47

triple bottomline