With Microfinance, the Mechanism of Peer Lending Is a Way

question 28

Multiple Choice

With microfinance, the mechanism of peer lending is a way to avoid the problem of

• A) capital flight.
• B) imperfect information.
• C) the tragedy of the commons.
• D) a double coincidence of wants.

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Definitions:

Mean

The average of a set of numbers, calculated by dividing the sum of all the values in the set by the number of values.

Binomial Distribution

A probability distribution that represents the number of successes in a fixed number of independent Bernoulli trials, each with the same probability of success.

Binomial Table

A mathematical table used to determine the probability of obtaining various numbers of successes in a fixed number of trials in a binomial experiment.

Cumulative Probability

This term refers to the probability that a random variable is less than or equal to a specified value.