What type of bank is primarily focused on providing microloans to low-income ind
Practice Questions
Q1
What type of bank is primarily focused on providing microloans to low-income individuals?
Commercial Bank
Development Bank
Microfinance Bank
Investment Bank
Questions & Step-by-Step Solutions
What type of bank is primarily focused on providing microloans to low-income individuals?
Step 1: Understand what a microloan is. A microloan is a small loan given to people who need financial help but may not qualify for traditional loans.
Step 2: Identify who typically needs microloans. Low-income individuals often need these loans to start small businesses or cover urgent expenses.
Step 3: Learn about the type of bank that provides these loans. Microfinance banks specialize in giving microloans to those who lack access to regular banking services.
Step 4: Conclude that microfinance banks are the answer to the question, as they focus on helping low-income individuals with microloans.
