JKSSB Mock Tests

Which of the following definitions best describes the concept of microfinance?

A. A microfinance institution is a company registered under the Companies Act, 1956, and engaged in the business of loans and advances and acquisition of shares /stocks/ bonds/ debentures/ securities issued by the government.
B. Microfinance is a banking service provided to unemployed or low-income individuals or groups, who otherwise would have no other access to financial services.
C. A microfinance institution is a digital-only and mobile-first bank.
D. Microfinance refers to providing banking services to individuals living in rural areas.
Answer: Option B
Solution (By JKSSB Mock Tests Team)
Microfinance encompasses a broad category of financial services tailored to individuals without access to conventional banking, helping them build assets and manage risks.
This Question Belongs to: General knowledge mcqs Economics set 1

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