Question11 According to Banerjee et al. (2015), which businesses mostly benefit from the microfinance funding? all small large none ResetMaximum marks: 1 Flag question undefined

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We start by restating the question and the available options to set the context for analysis.
Question: According to Banerjee et al. (2015), which businesses mostly benefit from the microfinance funding? all small large none
Options: 1) all  2) small  3) large  4) none
Now, evaluate each option:
Option 1: 'all' — This would imply that microfinance funding benefits every type of business equally. In the microfinance literature, funding often targets underserved or smaller-scale enterprises that lack access to traditional banking, so claiming that all businesses benefit equally is overly broad and ignores differential access and impact. This makes the option dubious.
Option 2: 'small' — The typical finding in Banerjee et al. (2015) and similar microfinance studies is that microfinance programs predominantly serve and benefit small, micro, and informal enterprises rather than large firms. The mechanism usually involves lending to individuals or small groups with limited collateral, designed to lift small-scale operators. This aligns with the conventional understanding of microfinance outcomes.
Option 3: 'large' — Large businesses generally have easier access to formal financial markets and collateral, reducing the marginal benefit of microfinance programs. If a study reports that large firms are the primary beneficiaries, it would contradict the core premise of microfinance aimed at empowering small and marginal actors. Therefore, this option seems unlikely.
Option 4: 'none' — Claiming that no business benefits would contradict the premise of any microfinance program showing some level of impact for borrowers. If the study reports positive effects for some segment, 'none' would be incorrect. This option appears implausible given typical findings in the literature.
Synthesis: We weigh the intent and empirical emphasis of microfinance interventions, which is to uplift small, informal, or micro enterprises that lack access to conventional credit. Among the given choices, 'small' best captures the targeted and commonly observed beneficiary group, while the other options conflict with the established focus or logical expectations of microfinance impact.
In summary, option 2 ('small') is the most consistent with Banerjee et al. (2015) regarding who mostly benefits from microfinance funding, whereas option 1 overreaches by claiming universal benefit, option 3 misattributes benefits to large firms, and option 4 denies any positive effect where evidence would suggest otherwise.

Question11 According to Banerjee et al. (2015), which businesses mostly benefit from the microfinance funding? all small large none ResetMaximum marks: 1 Flag question undefined

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