Several MFIs Take Advantage of an Innovative Lending Technology Known

question 9

Multiple Choice

Several MFIs take advantage of an innovative lending technology known as group liability lending.What is the advantage of group liability lending

• A) Its shifts the burden of screening and supervising from group members to loan officers
• B) It reduces the risk involved in borrowing from an MFI
• C) It lowers lending costs by shifting some the burden of screening and supervising from loan officers to group members
• D) It provides borrowers with dynamic incentives for repayment

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Definitions:

Endergonic Reactions

Chemical reactions that require an input of energy to proceed and are characterized by a positive change in free energy.

Transition State

A high-energy state during a chemical reaction where reactants are converted into products, representing the point of maximum energy during the reaction.

Substrates

A substance or layer that underlies something, or on which some process occurs, in various scientific fields, it often refers to the base on which an organism grows or the substance enzymes act upon.

Cofactor

A coenzyme or metal ion that associates with an enzyme and is necessary for its function.