Microfinance is the provision of financial service to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are : 1. Credit facilities 2. Savings facilities 3. Insurance fa

examrobotsa's picture

Submitted by examrobotsa on

Q: 38 (IAS/2011)
Microfinance is the provision of financial service to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are :
1. Credit facilities
2. Savings facilities
3. Insurance facilities
4. Fund Transfer facilities
Select the correct answer using the codes gives below the lists:

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,116,77,30,33,14,116

keywords: 

{'microfinance': [0, 0, 0, 1], 'financial service': [0, 0, 0, 1], 'credit facilities': [0, 0, 0, 3], 'fund transfer facilities': [0, 0, 0, 1], 'savings facilities': [0, 0, 0, 1], 'income groups': [0, 0, 0, 1], 'services': [0, 0, 7, 17], 'provision': [5, 0, 10, 23], 'consumers': [0, 0, 0, 1], 'service': [0, 0, 3, 12], 'insurance facilities': [0, 0, 0, 1]}

Microfinance is the provision of financial services to people of low-income groups who do not have access to formal banking systems. The objective is to help these individuals become financially self-sufficient and improve their living standards. The main services provided under microfinance are:

Credit facilities: Microfinance institutions provide small loans to low-income individuals and groups who do not have access to traditional banking systems. These loans can be used for various purposes, including starting or expanding a business, purchasing equipment, or investing in education.

Savings facilities: Microfinance institutions also offer savings facilities to help people save and manage their money. These facilities are designed to be simple and accessible, with low minimum balance requirements and no account maintenance fees.

Insurance facilities: Some microfinance institutions also offer insurance products, such as life insurance or crop insurance, to help protect clients against unforeseen events.

Fund transfer facilities: Microfinance institutions may also provide remittance services to help clients send and receive money.

Therefore, the correct answer is option D: 1, 2, 3 and 4.

Practice this on app