Microfinance is a category of financial services targeting individuals and small businesses that lack access to conventional ______ and related services.
- AOption (a)
transport
- BOption (b)
banking
- COption (c)
manpower
- DOption (d)
security
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Correct answer
banking
Why this answer is correct
The correct answer is banking.
Key Points
- Microfinance is a financial service that provides small loans, savings accounts, and other banking facilities to individuals or businesses who lack access to traditional banking services.
- It primarily targets economically disadvantaged sections of society, especially women and rural communities, to foster entrepreneurship and self-sufficiency.
- Services under microfinance typically include micro-loans, micro-savings, and micro-insurance, helping individuals meet their financial needs and mitigate risks.
- Institutions like Grameen Bank in Bangladesh and Self-Help Groups (SHGs) in India are key players in the microfinance domain.
- Microfinance contributes to poverty alleviation, financial inclusion, and economic development in underserved regions by enabling access to banking services like credit and savings accounts.
Additional Information
- Transport:
- Transport is the movement of goods, people, or services from one location to another using various modes such as road, rail, air, and sea.
- It plays a vital role in economic development, supply chain management, and regional connectivity.
- While transport is essential for logistics and trade, it is not directly linked to microfinance services.
- Manpower:
- Manpower refers to the human resource or workforce required for production, services, and organizational operations.
- It is an important asset for businesses, industries, and governments in achieving their objectives.
- Microfinance institutions may indirectly support manpower development by financing skill-building initiatives, but manpower itself is not a direct service under microfinance.
- Security:
- Security in financial terms refers to the measures taken to safeguard investments, transactions, and financial assets from risks such as fraud, theft, or cyberattacks.
- While security is crucial in banking systems, it does not represent the core financial services provided under microfinance.






