Which of the Following Best Summarizes the Argument in Favor

question 44

Multiple Choice

Which of the following best summarizes the argument in favor of microfinance?

• A) Microfinance ultimately leads to greater tax revenues for national governments.
• B) Recently, mainstream banks have begun to view microfinance as the prime driver of advanced economies.
• C) Microfinance allows the underprivileged to create businesses and improve their lives.
• D) Microfinance alleviates the pressure on MNEs to support developing economies.

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Definitions:

Internal Rate of Return

A metric used in finance to estimate the profitability of potential investments, calculating the rate of return where the net present value of all cash flows is equal to zero.

Cash Inflows

Funds entering a business from various sources like sales, financing, and investments.

Minimum Required Rate

The lowest rate of return or yield that an investor expects or requires from an investment.

Internal Rate of Return

The discount rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.