Peace Microfinance Bank Aptitude Test Questions and Answers

Peace Microfinance Bank Aptitude Test Questions and Answers

Here are 20 multiple-choice questions for a Peace Microfinance Bank;

What is the primary goal of Peace Microfinance Bank?

a) Maximizing profits

b) Reducing poverty

c) Providing large loans

d) Investing in real estate

Answer: b) Reducing poverty

Which of the following services is typically offered by microfinance institutions like Peace Microfinance Bank?

a) Home mortgages

b) High-interest savings accounts

c) Small loans to low-income individuals

d) Stock trading

Answer: c) Small loans to low-income individuals

What is the main target clientele of Peace Microfinance Bank?

a) High-net-worth individuals

b) Small and medium-sized businesses

c) Low-income individuals and families

d) Large corporations

Answer: c) Low-income individuals and families

What is the purpose of group lending in microfinance, as practiced by Peace Microfinance Bank?

a) To reduce the risk for the bank

b) To provide larger loans

c) To discourage social support

d) To make lending decisions more complicated

Answer: a) To reduce the risk for the bank

Which financial service is most closely associated with microfinance institutions like Peace Microfinance Bank?

a) Home insurance

b) Health insurance

c) Crop insurance

d) Credit facilities

Answer: d) Credit facilities

What does the term "microcredit" refer to in the context of microfinance?

a) Very small loans

b) Large loans for business expansion

c) Long-term loans for housing

d) Grants for education

Answer: a) Very small loans

How do microfinance institutions like Peace Microfinance Bank often assess the creditworthiness of borrowers?

a) Based on their social media activity

b) Through extensive credit checks

c) By evaluating their character and trustworthiness

d) By requiring collateral

Answer: c) By evaluating their character and trustworthiness

Which organization or individual is often credited with pioneering the concept of microfinance?

a) Muhammad Yunus

b) Bill Gates

c) World Bank

d) Warren Buffett

Answer: a) Muhammad Yunus

What is the typical repayment period for microloans provided by Peace Microfinance Bank?

a) 30 years

b) 10 years

c) 5 years

d) 1 year

Answer: d) 1 year

What is the primary source of funding for Peace Microfinance Bank's loan portfolio?

a) Government grants

b) International donors

c) Deposits from clients and investors

d) Stock market investments

Answer: c) Deposits from clients and investors

In the context of microfinance, what does the term "Grameen Bank" refer to?

a) A type of microloan

b) A microfinance institution in Bangladesh

c) A banking app

d) A form of cryptocurrency

Answer: b) A microfinance institution in Bangladesh

What is the role of a "loan officer" in microfinance institutions like Peace Microfinance Bank?

a) To collect loan payments

b) To provide loans to clients

c) To audit the bank's financial records

d) To manage the bank's IT systems

Answer: b) To provide loans to clients

How do microfinance institutions like Peace Microfinance Bank aim to promote financial inclusion?

a) By targeting only wealthy clients

b) By providing financial services to underserved and low-income individuals

c) By offering high-interest savings accounts

d) By focusing on investment banking

Answer: b) By providing financial services to underserved and low-income individuals

What is the key principle of "solidarity lending" in microfinance, often used by Peace Microfinance Bank?

a) Providing loans without any requirements

b) Lending to only wealthy individuals

c) Encouraging borrowers to support each other and guarantee each other's loans

d) Offering long-term loans with low interest rates

Answer: c) Encouraging borrowers to support each other and guarantee each other's loans

How does Peace Microfinance Bank typically handle defaults on microloans?

a) By seizing collateral

b) By forgiving the debt

c) By increasing interest rates

d) By selling the debt to other financial institutions

Answer: a) By seizing collateral

What is the main difference between a microfinance institution like Peace Microfinance Bank and a traditional commercial bank?

a) The size of loans they provide

b) The number of branches they have

c) The level of government regulation they face

d) The range of financial services they offer

Answer: a) The size of loans they provide

What is the primary purpose of financial education programs offered by microfinance institutions like Peace Microfinance Bank?

a) To discourage clients from borrowing money

b) To help clients better manage their finances and make informed financial decisions

c) To promote high-risk investments

d) To encourage clients to invest in the stock market

Answer: b) To help clients better manage their finances and make informed financial decisions

Which of the following is NOT a common type of microfinance institution?

a) Credit unions

b) Non-governmental organizations (NGOs)

c) Commercial banks

d) Village savings and loan associations

Answer: c) Commercial banks

What is the primary objective of the interest rates charged by microfinance institutions like Peace Microfinance Bank?

a) To maximize profits

b) To cover administrative costs

c) To discourage clients from borrowing

d) To be as low as possible

Answer: b) To cover administrative costs

In which country is Peace Microfinance Bank headquartered?

a) United States

b) Switzerland

c) Bangladesh

d) Nigeria

Answer: d) Nigeria.