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:

Typical Corporation

A standard business entity where ownership is divided into shares of stock, offering limited liability to its shareholders and being subject to corporate tax rates.

Disposable Income

Money left for savings and expenditures in households after paying income taxes.

Disposable Income

This refers to the amount of money that households have available for spending and saving after income taxes have been accounted for.

Disposable Income

The total funds available for spending and saving by households after subtracting income taxes.