In Developing Nations, Microloans

question 20

Multiple Choice

In developing nations, microloans

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

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Definitions:

Apparent Authority

Apparent authority refers to a situation where a person appears to have the authority to act on behalf of another (such as an employer) even if no actual authority has been granted, leading others to reasonably believe in that authority.

Mutual Agreement

An accord reached by two or more parties who have made concessions to each other to resolve a conflict or reach a decision.

Notified

Informed or made aware, often in a formal or official manner.

Terminated

The ending of an employment relationship or agreement, either voluntarily by resignation, or involuntarily by the employer.