Why Are Rotating Credit Associations Common in Societies with a Traditional

question 7

Multiple Choice

Why are rotating credit associations common in societies with a traditional sharing system?

• A) You are obliged to help when others ask for money, so it's easier to save if you have an obligation to save for your contribution.
• B) Rotating credit associations are by nature an altruistic venture, with individual contributors receiving little in return.
• C) Societies with traditional sharing systems rarely have formal banking institutions, so there is no alternative way to save money.
• D) Rotating credit is a complex version of generalized reciprocity, which has its roots in traditional sharing systems.

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Definitions:

Grasping

An instinctual reflex in infants that prompts them to tightly hold onto objects placed in their hands.

Infants

Describes young children from birth up to 12 months, characterized by rapid growth and development across physical, cognitive, and social domains.

Identical Twins

Twins that develop from a single fertilized egg that splits into two, sharing the same genetic material.

Mirror Opposites

Pairs of concepts or objects that are directly opposite to each other, such as up/down or forward/backward, often used to teach relational concepts.