Question: Question 4 (15 marks) (a) Some banks may provide microfinance services to the clients via local retailers. Discuss (with not more than 100 words) how

Question 4 (15 marks) (a) Some banks may provide microfinance services

Question 4 (15 marks) (a) Some banks may provide microfinance services to the clients via local retailers. Discuss (with not more than 100 words) how the retailers can help reducing transaction costs in the microfinance services and benefit to the banks and the clients. (5 marks) (b) A lower default rate of loan may foster economic growth. To lower the default rate of loans, microfinance institutions (MFIS) should provide the loan separately to each client instead of practicing solidarity lending and progressive lending. Discuss it with not more than 200 words that whether you agree the statements or not. (10 marks)

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