In Developing Nations, Microloans

question 324

Multiple Choice

In developing nations, microloans

• A) are far too small to have any discernible effect.
• B) are primarily used to finance consumption expenditure, thereby leading to economic growth.
• C) have enabled small businesses with limited access to credit to purchase capital and expand, thus allowing greater economic growth.
• D) have increased the indebtedness of impoverished people, thereby slowing economic growth.

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Definitions:

Salvage Value

The predicted leftover value of an asset following the end of its usable period.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Salvage Value

An estimate of the residual value of an asset at the end of its useful life, after it has been fully depreciated.

Book Value

The net value of a company's assets found on its balance sheet, often calculated as total assets minus intangible assets and liabilities.