Which of the Following Is Not an Example of Microfinance

question 34

Multiple Choice

Which of the following is not an example of microfinance?

• A)A loan to a farmer for a goat that will give milk that the farmer can sell.
• B)A loan to a small restaurant owner to buy a refrigerator.
• C)A loan to a U.S.-owned electronics company to expand overseas.
• D)A loan to a woman to buy a sewing machine to make clothes to sell.

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Definitions:

Cheating On Agreements

The act of knowingly violating the terms of an agreement or contract, often to gain an unfair advantage or benefit.

Cartels

Formal agreements among competing firms to control prices or exclude entry of a new competitor in a market.

Entry Barriers

Obstacles that prevent or hinder new competitors from easily entering an industry or area of business.

Collusion

An agreement between two or more parties, often in a secretive manner, to limit open competition by deceiving or defrauding others of their legal rights, or to obtain an objective forbidden by law, typically by defrauding or gaining an unfair market advantage.