21. Which of the following is a potential risk associated with micro-credit programs?
a) Over-indebtedness
b) Lack of financial education
c) High transaction costs
d) All of the above
22. What is the goal of the “graduation approach” in micro-finance?
a) To provide long-term financial support for borrowers
b) To help borrowers transition out of poverty
c) To encourage entrepreneurship among borrowers
d) To reduce interest rates on micro-credit loans
23. What is the primary difference between micro-credit and traditional banking services?
a) Micro-credit offers smaller loan amounts
b) Micro-credit has higher interest rates
c) Micro-credit focuses on financial inclusion for low-income individuals
d) Micro-credit requires collateral for loan approval
24. What is the role of micro-insurance in micro-finance?
a) To provide coverage for micro-credit loans
b) To protect borrowers against unexpected events or emergencies
c) To offer healthcare services to micro-credit borrowers
d) Micro-insurance is not a part of micro-finance
25. What is the primary source of income for most micro-credit borrowers?
a) Formal employment
b) Informal employment
c) Government assistance
d) Investment income
