1.

When setting interest rates for loans, microbank must consider:

	a.	Cost of capital
	b.	Cost associated with loan default
	c.	Operating expense
	d.	All of these

2. Which of the following was a benefit to the middleman arrangement for Sufiya in Banker to the Poor?

	a.	Increased household savings
	b.	Guaranteed income
	c.	High profit levels
	d.	Training received on stoolmaking

3. Which of the following is NOT true about ACCION International?

	a.	ACCION International was initially engaged in community projects in Venezuela
	b.	ACCION Internationals first microloan program was piloted in Recife, Brazil
	c.	ACCION International was initially engaged in microsavings programs in Uganda
	d.	ACCION Internationals Frontier Inclusion Fund focuses on fintech innovations

4. Which of the following is true about the Grameen Bank group loan program?

	a.	Forming a group reduces adverse selection
	b.	Peer group monitoring reduces moral hazard
	c.	Initial loan for two out of the five members creates dynamic incentives
	d.	All of these