Question

A microfinance institution would most likely work to support which

Answer 1

A microfinance institution would most likely work to support an entrepreneur hoping to start a small business in a developing country.

Option: A

Explanation:

In financial market policy there are two types of institution which give loan. One is macro financing institution and another one is micro financing institution.

• Micro financing institution normally supports small scale industries or start up industries like handicraft industry, business of ladies beauty parlor etc. A new entrepreneur who is hoping to start a small business in developing will get help from microfinance industries.

• Macro financing institution supports or give loan to large scale industries which need huge money to arrange primary infrastructure, raw materials etc.