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Who launched an 'India Micro-finance Platform', a portal on micro-finance activities across the country, with the assistance of World bank funds on 28th June 2013 ?


A) SBI
B) ICICI
C) SIDBI
D) Exim Bank

E) A) and B)
F) None of the above

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In which year the Regional Rural Banks Act was passed?


A) 1986
B) 1976
C) 1992
D) 1988

E) None of the above
F) All of the above

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Self Help Group involves


A) Group of 5 to 20 people
B) Regular saving habits
C) Inter-lending within the group members
D) All of above

E) B) and C)
F) All of the above

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In microfinance the demand side constraints


A) Is lack of awareness
B) distance from bank branch
C) unsuitable product
D) communication

E) B) and C)
F) None of the above

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In the self-help group, the loan and saving decisions are taken by


A) Government
B) Non-government organisation
C) Bank
D) Group members

E) A) and B)
F) B) and D)

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D

What is NOT a potential limit of group lending?


A) Monitoring group members can be costly for borrowers
B) Group lending uses social sanctions instead of collateral foreclosure
C) Group lending brings added risks for borrowers, those of others members' default.
D) Exclusion of all group members after one of them default is too harsh a punishment.

E) A) and D)
F) None of the above

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What is TRUE of group lending clause?


A) Dealing with groups instead of individuals reduces transaction costs for the bank
B) Group arrangements teach the bank a great deal about who is safe and who is risky
C) Group lending reduces inequality between borrowers: all benefit from the same interest rate
D) Group loans are always cheaper than individual loans

E) A) and B)
F) All of the above

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Indian Micro Finance Institutes (MFI) usually adopt the group-based lending models, which are of two types. SHG model and JLG model. SHG means Self Help Group and JLG means ?


A) Joint Liability Game
B) Josh Liability Group
C) Joint Loan Group
D) Joint Liability Group

E) A) and B)
F) C) and D)

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Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed ?


A) Ponzi schemes
B) Micro Finance System
C) Money Laundering Schemes
D) Money tampering finance

E) A) and C)
F) A) and B)

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Which option blocks the poor to get bank loans?


A) Absence of collateral
B) High rates of interest
C) Complexity of procedure
D) None of the above

E) None of the above
F) A) and B)

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What is NOT a source of difficulty in the estimation of the impact of microfinance projects?


A) we do not observe what would have happened in absence of the microfinance project
B) participants systematically differ from non participants in their propensity to benefit from micro-loans
C) microfinance programs are not located randomly, they are often located in disfavoured areas
D) microfinance programs are often targeted to women

E) A) and D)
F) A) and B)

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The following statements are related to Micro Finance System. Locate the wrong option ?


A) It provides micro credit having scope for small savings and remittance of funds
B) It based on the principle of livelihood creation
C) The livelihood mission means engaging in activities in a routine fashion to generate cash or non-cash income
D) None

E) C) and D)
F) A) and D)

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The Micro Finance Institutions (MFI) differ from one another in terms of -


A) Product offering
B) Loan repayment Structure
C) Product offerings
D) All of these

E) B) and C)
F) None of the above

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D

Which of the following takes the decisions regarding loans and savings in a self-help group (SHG) ?


A) Government
B) Non-government organisation
C) Bank
D) Group members

E) A) and D)
F) A) and B)

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The beneficiaries of Micro finance business are _____________


A) Land Less labour
B) Marginal farmers
C) Vendors in the small markets
D) All the above

E) B) and D)
F) A) and B)

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A small loan amount given to low-income households or groups is known as ________ .


A) Cash credit
B) Micro credit
C) Rural credit
D) Simple credit

E) A) and D)
F) B) and D)

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Who introduced the concept of Micro Finance in Bangladesh in the form of the "Grameen Bank"? He is the Nobel laureate known by many as the "father of micro finance systems".


A) C. D. Deshmukh
B) Amartya Sen
C) Muhammad Yunus
D) Sheik Haseena

E) A) and B)
F) All of the above

Correct Answer

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What is not a mechanism that contributes to the success of Micro- credits?


A) Dynamic incentives
B) Peer monitoring
C) Regular payment schedules
D) Collaterals

E) A) and B)
F) A) and C)

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What does the microfinance model Not predict:


A) A decrease interest rates when repayment is regular & in time
B) Homogeneous risk groups
C) Self-selection of best borrowers
D) None of the above

E) None of the above
F) B) and D)

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C

The informal sector loans incorporate _______ .


A) State Bank of India
B) Moneylenders
C) NABARD
D) Both (A) and (B)

E) A) and B)
F) A) and C)

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