Match the following microfinance concepts with their descriptions.
|
List I (Concepts) |
List II (Descriptions) |
|
(a) Microcredit |
(i) Small, often peer-monitored savings products designed for low-income individuals |
|
(b) Microsavings |
(ii) Financial protection against specific perils for low-income populations |
|
(c) Microinsurance |
(iii) The use of group responsibility as a guarantee for loan repayment |
|
(d) Social Collateral |
(iv) Small loans provided to entrepreneurs too poor to qualify for traditional bank loans |
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. a-(iv), b-(i), c-(ii), d-(iii).
The correct matching of microfinance concepts with their descriptions is:
(a) Microcredit - (iv) Small loans provided to entrepreneurs too poor to qualify for traditional bank loans
(b) Microsavings - (i) Small, often peer-monitored savings products designed for low-income individuals
(c) Microinsurance - (ii) Financial protection against specific perils for low-income populations
(d) Social Collateral - (iii) The use of group responsibility as a guarantee for loan repayment
These concepts play a crucial role in promoting financial inclusion for low-income groups.