Program that provides small loans to poor people, especially women, to encourage development of small businesses describes which term?

Program that provides small loans to poor people, especially women, to encourage development of small businesses describes which term?

• A. microcredit program
• B. NGOs
• C. NAFTA
• D. SEZs

Answer: (A)

This item tests your understanding of microfinance, focusing on a program that gives small loans to poor people to help start or grow small businesses. Microcredit programs are designed to reach those without access to formal banks, often targeting women to empower them and boost household income. The loans are typically small, with practical repayment terms, and are frequently accompanied by training or mentoring to increase the chances of business success and repayment. The other options aren’t about providing small loans: NGOs are organizations that deliver aid or services, NAFTA is a trade agreement between countries, and SEZs are designated zones with special economic rules to attract investment. Since the description clearly matches a program that provides small loans to the poor to encourage development of small businesses, the best term is microcredit program.

This item tests your understanding of microfinance, focusing on a program that gives small loans to poor people to help start or grow small businesses. Microcredit programs are designed to reach those without access to formal banks, often targeting women to empower them and boost household income. The loans are typically small, with practical repayment terms, and are frequently accompanied by training or mentoring to increase the chances of business success and repayment. The other options aren’t about providing small loans: NGOs are organizations that deliver aid or services, NAFTA is a trade agreement between countries, and SEZs are designated zones with special economic rules to attract investment. Since the description clearly matches a program that provides small loans to the poor to encourage development of small businesses, the best term is microcredit program.