Question detail
What is microfinance?
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
MCQ
Type
practice
Style
Topic
Section B: The changing economic world
Question
- A. Large loans for industrial development
- B. Small loans to help individuals start businesses
- C. Government grants for education
- D. Investment in foreign companies
Answer
Small loans to help individuals start businesses
Explanation
Microfinance provides small loans to individuals, particularly in developing countries, to help them start or expand their businesses.
Common mistake
Misunderstanding Development Strategies
Students often confuse different strategies used to reduce the development gap, such as mixing up the roles of aid and investment.
To fix this, students should clearly define each strategy and understand its specific role in reducing the development gap.
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