Question

What is the primary role of a 'microfinance institution' in resource mobilisation?

• A. To channel funds from wealthy investors to large corporations.
• B. To provide financial services exclusively to government agencies.
• C. To invest in high-risk, high-return ventures without considering social impact.
• D. To mobilize financial resources for very low-income individuals and communities.

Answer 1

Answer:

D. To mobilize financial resources for very low-income individuals and communities.

• Microfinance institutions specialize in serving those who are traditionally excluded from the formal banking sector, providing them with access to small loans, savings, and insurance.