With Microfinance, the Mechanism of ________ Is a Way to Avoid

question 68

Multiple Choice

With microfinance, the mechanism of ________ is a way to avoid the problem of imperfect information.

• A) requiring no collateral
• B) peer lending
• C) making only small loans
• D) accepting savings deposits

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Definitions:

Positive Outcome

A result that is beneficial, favorable, or desirable in nature.

Universal Law

A principle or rule considered to be objectively valid, applicable to all members of a defined group or condition.

Trust

A firm belief in the reliability, integrity, or ability of someone or something, fundamental for building relationships and ensuring cooperative behavior.

Autonomy

The right or condition of self-governance, or making one's own decisions without interference from others.