In the Textual Example,Muhammad Yunus Was Highly Successful in His

question 143

Multiple Choice

In the textual example,Muhammad Yunus was highly successful in his use of applying social incentives through group responsibility in order to maximize loan repayment rates.This success created an incentive for other banks to:

• A) offer similar loans to the poor.
• B) go out of business.
• C) seek government action to ban group responsibility lending.
• D) avoid catering to a high risk group.

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Definitions:

Group Pressure

The influence exerted by a group that encourages individuals to change their attitudes, values, or behaviors to conform to group norms.

Moral Judgments

Are determinations of what is right and wrong based on ethical principles, societal norms, or personal beliefs, influencing behaviors and decisions.

Mental Efficiency

The ability of the brain to process information quickly and effectively, using the least amount of cognitive resources.

Reality Testing

A psychological process to distinguish what is internally fantasized from what is external and real in the environment.