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:

Financial Statement

Formal records that outline the financial activities and condition of a business, individual, or other entity.

Normal Balance

The side (debit or credit) of an account that is expected to have a higher balance, indicating its usual increase direction.

Account Nature

Refers to the classification of an account as either an asset, liability, equity, revenue, or expense, which dictates its role and presentation in financial statements.

Normal Balance

The side of an account on which increases are recorded, typically the debit side for assets and expenses, and the credit side for liabilities, equity, and revenue.