With Microfinance, the Mechanism of Peer Lending Is a Way

question 28

Multiple Choice

With microfinance, the mechanism of peer lending is a way to avoid the problem of

• A) capital flight.
• B) imperfect information.
• C) the tragedy of the commons.
• D) a double coincidence of wants.

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Definitions:

Groupthink

An occurrence in psychology where the pursuit of agreement or adherence within a group causes choices that are irrational or counterproductive.

Bad Decisions

Choices or judgments that lead to undesirable outcomes due to flawed reasoning or poor judgment.

Parasympathetic Nervous System

A component of the autonomic nervous system responsible for conserving energy by slowing the heart rate and increasing intestinal and glandular activity.

Neurons

Specialized nervous system cells responsible for conveying information to other neurons, muscles, or glands.