Asked by Shania Gaston on Jun 18, 2024
Verified
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.
Microfinance
Microfinance encompasses financial services like loans, savings, insurance, and fund transfers targeted at low-income individuals or groups who lack access to traditional banking services.
Lending
The act of giving money to another party with the expectation that it will be repaid with interest.
Capital Flight
The sudden and large-scale withdrawal or transfer of money or assets out of a country, often in response to economic or political instability.
- Describe the contribution of international financial bodies in the advancement of economic development.
Verified Answer
SB
Sadie BuchananJun 23, 2024
Final Answer :
A
Explanation :
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.
Learning Objectives
- Describe the contribution of international financial bodies in the advancement of economic development.