SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)

Subject: Micro Financing

Sample Questions:
Section I: Subjective Questions

1. State the initiatives highlighted under housing microfinance.

2. State any five dimensions of sustainability in microfinance.

3. While getting impressive achievements in Microfinance programme what type of

questions arise?

4. Give any five ways with which SHGs manage to perform its functions.

5. Discuss the key characteristics of commercial microfinance.

6. Write a short note on Client Impact Study Assumptions.

7. State various phases in microfinance product development.

8. Write a short note on Community-based Management (CBM).

Section II: Objective Questions

Multiple Choice Single Response

1. The rate of interest on microcredit has always been a topic of

1] Intense debate

2] Intensive discussion

3] Critical appraisal

4] Intense appraisal

2. There is a very limited presence of microfinance in

1] North East India

2] Southern India

3] Western India

4] East India
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

3. The SHG group consists of

1] Only men or only women

2] Only women

3] Only men

4] Mix of men and women

4. At present, there are two models of microfinance delivery in India:

1] The SBLP model and the MFI model

2] The SBLP model and the Credit Union model

3] The MFI model and the community banking model

4] The MFI model and the credit union model

5. Under the SHG Bank Linkage Programme, banks provide credit in bulk to the
SHGs, which in turn

1] Lend to its members

2] Lend to its associates

3] Lend to the needy

4] Lending to the creditworthy

6. There is an overall improvement in access and use of MFI loans but

1] Not of other services

2] Not of other products

3] Not of other facilities

4] None of the above

7. Non-Financial Services under micro finance include,

1] Long term credit facility

2] Short term credit facility

3] Gender mainstreaming projects

4] Literacy and health awareness programmes

 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

8. The microfinance business model is to address the challenges faced by the

traditional financial services sector in fulfilling the

1] Credit needs of the low-income segment

2] Credit needs of the rural poor

3] Credit needs of the semi-urban poor

4] Credit needs of the urban poor

9. NBFC MFIs can also enter into

1] Capital markets

2] Retail deposit market

3] Money market

4] Inter-bank market

10. Studies highlight the benefits received by

1] The client households

2] The client house owners

3] The client housemaids

4] The client house members

Multiple Choice Multiple Response

11. The key problem areas visualised in rural financial markets of India include
1] A lack of credit in rural areas
2] Absence of modern technology in agriculture
3] Low savings capacity in rural areas
4] Prevalence of scheduled banks
12. The following factors in business are the main reasons for the emergence of women
in business ventures:

1] Skill

2] Knowledge

3] Adaptability

4] Finance

13. The cooperative microfinance faces the following issues:

 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

1] Inability to ensure active membership

2] Speedy exit of non-user members

3] Lack of member communication

4] Speedy entry of non-user members

14. Underdeveloped legal system, with respect to property rights results in

1] Weak collateralisation of claims

2] Inadequate contract enforcement mechanisms

3] Delay in getting legal decision

4] Delay in enforcing of security

15. Millions of poor across the country are benefitted from

1] The MFI channel of credit delivery

2] The national level programme of SHG-Bank Linkage

3] The MFI channel of profit making

4] The group level programme of SHG-Bank Linkage

16. A range of institutions offering microfinance services in India comprises

1] National Bank for Agricultural and Rural Development (NABARD)

2] Small Industries Development Bank of India (SIDBI)

3] Rashtriya Mahila Kosh (RMK)

4] Moneylenders

17. There are two approaches to gender mainstreaming:

1] The integrationist approach

2] The agenda setting approach

3] The microfinance approach

4] The microeconomics approach

18. Cooperative micro finance programmes in India have these benefits:

1] High population density

 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

2] Low transaction costs

3] Reaching many micro clients

4] Low population density

Fill in the Blanks

19. Commercial MFIs can offer tailor-made loan products to meet the demand of
______ .

1] Individual rural customers

2] Individual semi-urban customers

3] Individual urban customers

4] Individual metro customers

20. Micro financing provided mainly one input (credit) for ______ .

1] Economic upliftment

2] Social upliftment

3] Community upliftment

4] Physical upliftment

21. Microfinance is a tool for empowerment of ______ .

1] Poor women

2] Rural women

3] Semi-urban women

4] Urban women

22. Studies have shown that the staff members of microfinance institutions prefer to
______ the core poor since lending to them is seen as extremely risky.

1] Exclude

2] Include

3] Prefer

4] Opt

23. Women empowerment results in compliance with the ______ Development Goals.
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

1] Millennium

2] Century

3] Decade

4] Quarter

24. Approximately 50 per cent of the total microfinance programme beneficiaries

belong to ______ south Indian states.

1] One

2] Two

3] Four

4] Eight

25. Access to formal sources of housing finance on a property is based on oneâs ability
to show evidence of ______ and formal employment.

1] Legal title

2] Unauthorised possession

3] Past default history

4] Inability to raise margin

26. SBLP is an instrument in______

1] Financial inclusion

2] Financial exclusion

3] Financial literacy

4] Financial shrinkage

27. The records of SHGs are maintained by ______ .

1] SHG office bearers

2] SHG president

3] SHG secretary

4] SHG treasurer

28. The BC model can succeed only if the banks own up the BCs as their ______ .
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

1] Agents

2] Informants

3] Representatives

4] Communicators

State True or False

29. Policies on defaults and dropouts clearly state how to deal with defaults and
dropouts.

30. General constraint in financial markets is proper prudential regulations and

supervision of financial intermediaries.

31. Many women enterprises have imperfect organizational setup.

32. Research has shown that upper caste women are more responsive to business
training and training allowed them to challenge social norms that obstructs their
businesses.

33. By helping women meet their practical needs and increasing their efficacy in the
traditional roles, microfinance helps women to gain self-confidence and social
respect, thereby inching towards empowerment.

34. Microfinance is considered an important mechanism for economically empowering

women.

35. In most developing countries, affluent families do not possess formal proof of land
ownership.

36. Microfinance has an enormous potential to make a major contribution towards

gender inequality.

37. Microfinance is a credit lending model.

38. The not-for-profit institutions use an inclusive decision-making process type of

organisational structures.

Match the Following

39. 1] Informal Source of Finance 1] Money Lender
2] Regulated Financial Institution 2] Cooperatives
3] Housing Micro Finance 3] MFI
4] Non-Government Institution 4] NGO
5] Magazines
6] Ministry of Finance
40. 1] Shelter Advocacy to Housing Finance 1] Efforts to upgrade the slums
(SAHF) takes
 SYMBIOSIS CENTRE FOR DISTANCE LEARNING (SCDL)
Subject: Micro Financing

2] Micro Credit to Housing Finance 2] Micro credit for housing

(MCHF) provides
3] Micro Enterprise Loans offers 3] Conventional micro credit
programmes
4] Housing Mortgage Finance provides 4] Housing loans against mortgage of
property
5] Efforts to upgrade the urban areas
6] Micro credit for business
41. 1] The formal Indian financial system 1] The deprived segment
has failed to reach
2] India ranks second in the world, after 2] Unbanked population
China, in terms of size of
3] The microfinance sector targets the 3] The mid to richer portion of the
poorer portion of the aspirer segment deprived segment
and
4] Appropriate legal structure, access to 4] Challenges for the microfinance
loan funds, retaining human resource, industry
ability to train the trainers still remain
5] Banked population
6] The deprived section
42. 1] Pilot test 1] It introduces the product prototype to
a limited number of
customers
2] Finalising the prototype design 2] It involves balancing cost and
profitability considerations
3] Analysing the break-even sales 3] It determines the length of time it
volume would take to recover fixed cost
4] Locations for testing 4] It represent a subset of the
institution’s target market for the
product
5] It is the rate of return for product
6] It represents the number of clients per
loan officer