What type of financial institution primarily provides microloans to low-income i
Practice Questions
Q1
What type of financial institution primarily provides microloans to low-income individuals?
Commercial Bank
Investment Bank
Microfinance Institution
Development Bank
Questions & Step-by-Step Solutions
What type of financial institution primarily provides microloans to low-income individuals?
Step 1: Understand what a microloan is. A microloan is a small loan given to people who do not have access to traditional banking services.
Step 2: Identify who typically needs microloans. Low-income individuals often need these loans to start or grow small businesses.
Step 3: Learn about financial institutions. These are organizations that provide financial services, like loans.
Step 4: Find out what a microfinance institution is. A microfinance institution is a type of financial institution that specializes in providing microloans.
Step 5: Conclude that microfinance institutions primarily provide microloans to low-income individuals to help them become entrepreneurs.
