Microfinance Institutions Get Around the Problem of Moral Hazard and High

question 48

Multiple Choice

Microfinance institutions get around the problem of moral hazard and high default rates by:

• A)lending to groups rather than individuals.
• B)lending only to proven borrowers.
• C)lending only to large businesses.
• D)charging usurious interest rates.

Recognize the impact of federal budget choices on economic indicators like aggregate demand and national saving.

Identify legislative and hypothetical actions to manage or reform the federal budget process.

Understand the fiscal year definition and its significance in budget planning.

Know the differences among various federal government spending categories and their economic impacts.

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Definitions:

Variation

The differences observed within and among populations in genetically inherited characteristics, essential for natural selection and evolution.

Heritability

The proportion of observed variation in a particular trait among individuals of a population that can be attributed to inherited genetic factors.

Medium Ground Finch

A species of bird in the Galapagos Islands, known for its variable beak size, studied in the context of natural selection.

Australian Snake

Reptiles found in Australia, known for both venomous and non-venomous species, playing crucial roles in the ecosystem as predators and prey.