reading comprehension section 5 Detailed Explanation And More Example

Question : 1

What was the impact of the non-disclosure of their interest rates by lending institutions ?

a) Shareholders’ interests were not protected

b) The poor were exploited

c) The government issued sanctions against such firms.

d) More microfinance institutions were motivated to go public.

e) None of these

Question : 2

What is CGAPs fear with respect to new entities providing microfinance?

a) The poor will hesitate to take advantage of credit facilities because of the formalities involved.

b) The interests of the most deserving among the poor will be neglected.

c) NGO will be unable to survive in an environment of cut throat competition

d) The poor in the developed world will be overlooked

e) Shareholders interest will be ignored

Question : 3

What is the authors opinion about the competition for customers among microfinance’s ?

a) It is futile since the poor have to pay high rates of interest on property loans,

b) It is a disadvantage since microfinance’s use any means possible to recover loans.

c) It benefits the poor by providing them with loans would have otherwise riot had access to.

d) It is not beneficial since firms waste their profits on marketing rather than helping the poor.

e) None of these

Question : 4

What does the transformation of Perus non-profit organisation into a bank illustrate?

1. To compete with commercial banks, microfinance Institutions should convert into banks and offer a wide variety of services.
2. Microfinance institutions turn to higher profits than banks since interest rates on loans are at their discretion.
3. The poor prefer to go to large banks rather than NGOs to obtain loans.

a) Both (A) and (B)

b) Only A

c) None

d) All (A), (B) and (C)

e) None of these

Question : 5

Street theatre creates an/a _______ impact on audiences.

a) physical

b) mystical

c) emotional

d) intimate

Question : 6

Street theatre is _______ to stage

a) affordable

b) reasonable

c) costly

d) nothing