Micro Finance Mock Test

15 Questions | Total Attempts: 77

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Micro Finance Mock Test

Microfinance, also called microcredit​, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. Have a Micro Finance Exam coming up? Don't worry, take this Micro Finance Pre Test and prepare well.


Questions and Answers
  • 1. 
    Rotating savings and unions credit associations transform into Accumulating Savings and Credit Associations when one of the following is done among others:
    • A. 

      Members can borrow from an accumulated fund outside contributions

    • B. 

      Some money is saved in a lock box or in some other more secure manner

    • C. 

      At the end of the cycle, members can choose to start a new round or to disband

    • D. 

      ​​​​​​a pre-determined amount of money brought to weekly meetings is collected and passed to a different member each week on a rotating basis

  • 2. 
    According to the Stakeholder concept, a microfinance employee would be ……in a typical microfinance sector
    • A. 

      ​​​​​​a primary stakeholder

    • B. 

      ​​​​​​a secondary stakeholder

    • C. 

      ​​​​​​a solid stakeholder

    • D. 

      ​​​​​​a client stakeholder

  • 3. 
    Which one of these will be categorized as a semi-formal microfinance institution?
    • A. 

      Building society

    • B. 

      Rotating savings and unions credit association

    • C. 

      Rural bank

    • D. 

      ​​​​​​Village bank

  • 4. 
    Which one of these will be categorized as an informal microfinance institution?
    • A. 

      ​​​​​​Building Society

    • B. 

      ​​​​​​​Rotating savings and unions credit association

    • C. 

      Rural bank

    • D. 

      Village bank

  • 5. 
    The following are all development objectives of MFIs except:
    • A. 

      Adverse selection

    • B. 

      Employment creation

    • C. 

      Empower of women or other disadvantaged population groups

    • D. 

      ​​​​​​​poverty reduction

  • 6. 
    ….………………… methodologies help in creating social collateral (peer pressure) that can effectively substitute physical collateral in the MFI sector
    • A. 

      Formal

    • B. 

      Group

    • C. 

      Individual

    • D. 

      Informal

  • 7. 
    A client would be classified as a(an) ………… and  stakeholder
    • A. 

      External, primary

    • B. 

      External, secondary

    • C. 

      Internal, primary

    • D. 

      Internal, secondary

  • 8. 
    The government would be classified as a(an) ………… and stakeholder.
    • A. 

      External, primary

    • B. 

      External, secondary

    • C. 

      Internal, primary

    • D. 

      ​​​​​​​internal, secondary

  • 9. 
    Which of the following best defines microfinance?
    • A. 

      The provision of financial loans to the rural folks

    • B. 

      ​​​​​​The provision of financial services to the low income, the poor, and the unbanked population

    • C. 

      ​​​​​​The provision of small loans to micro, small, and medium enterprises

    • D. 

      ​​​​​​​The provision of small savings to the poor.

  • 10. 
    Which of the following is NOT a benefit of regulation of Microfinance in a country?
    • A. 

      ​​​​​​Financial soundness

    • B. 

      Protect the clients interest

    • C. 

      ​​​​​​Reinforcing public trust

    • D. 

      Revising the cost of capital upwards

  • 11. 
    Which of the microfinance regulation is a major constraint to existing and new entrants in the industry?
    • A. 

      Minimum capital requirement

    • B. 

      Provision of business plan

    • C. 

      Reserve requirement

    • D. 

      Restriction to expansion

  • 12. 
    Strategic Decision making based on stakeholder theory results in a process characterized by three main features: These include each of the following except:
    • A. 

      Rationality

    • B. 

      Intuition

    • C. 

      Political behaviour

    • D. 

      ​​​​​​​Information

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