Infinity Microfinance Bank Aptitude Test Questions and Answers

Infinity Microfinance Bank Aptitude Test Questions and Answers

Here are 20 multiple-choice questions for Infinity Microfinance Bank:

What is the primary goal of Infinity Microfinance Bank?

a) Maximizing profits

b) Providing financial services to the underserved

c) Expanding into international markets

d) Supporting large corporations

Answer: b) Providing financial services to the underserved

Which of the following is NOT a typical service offered by microfinance institutions like Infinity Microfinance Bank?

a) Small business loans

b) Personal savings accounts

c) Insurance products

d) Mortgage loans

Answer: d) Mortgage loans

How does Infinity Microfinance Bank primarily raise funds to provide loans to its clients?

a) Stock market investments

b) Government grants

c) Client deposits

d) Foreign currency exchange

Answer: c) Client deposits

What is the main advantage of microfinance institutions like Infinity Microfinance Bank for low-income individuals?

a) High-interest rates

b) Accessibility to financial services

c) Large loan amounts

d) Exclusivity for the wealthy

Answer: b) Accessibility to financial services

What is the typical size of loans provided by Infinity Microfinance Bank to its clients?

a) Millions of dollars

b) Thousands of dollars

c) Hundreds of dollars

d) Tens of dollars

Answer: c) Hundreds of dollars

Which of the following is an important factor for evaluating the creditworthiness of a borrower at Infinity Microfinance Bank?

a) Annual income exceeding $100,000

b) High credit score

c) Collateral assets

d) Character and repayment capacity

Answer: d) Character and repayment capacity

In which sector does Infinity Microfinance Bank focus its lending to support entrepreneurs and small businesses?

a) Large corporations

b) Agriculture

c) Technology startups

d) Entertainment industry

Answer: b) Agriculture

How do microfinance institutions like Infinity Microfinance Bank contribute to poverty reduction?

a) By charging high interest rates

b) By providing job opportunities to clients

c) By promoting financial inclusion and economic empowerment

d) By focusing on urban areas only

Answer: c) By promoting financial inclusion and economic empowerment

What is the role of the "group lending" model in microfinance, and does Infinity Microfinance Bank use this approach?

a) Individual loans; Yes

b) Loan groups; No

c) Joint liability; Yes

d) Savings accounts; No

Answer: c) Joint liability; Yes

Who is typically the target audience for Infinity Microfinance Bank's services?

a) High-net-worth individuals

b) Rural and low-income individuals

c) Large corporations

d) International investors

Answer: b) Rural and low-income individuals

What is the primary risk associated with microfinance institutions like Infinity Microfinance Bank?

a) High levels of government regulation

b) Insufficient client demand

c) Loan default by clients

d) Rapid changes in the stock market

Answer: c) Loan default by clients

How does Infinity Microfinance Bank assess the creditworthiness of clients who lack a traditional credit history?

a) Through extensive background checks

b) By requiring a high initial deposit

c) By using alternative credit scoring methods

d) By limiting access to credit

Answer: c) By using alternative credit scoring methods

What is the typical repayment frequency for loans provided by Infinity Microfinance Bank?

a) Monthly

b) Annually

c) Biweekly

d) Irregular

Answer: a) Monthly

How does Infinity Microfinance Bank differentiate itself from traditional banks?

a) By offering higher interest rates on savings accounts

b) By serving primarily urban customers

c) By focusing on large-scale commercial loans

d) By providing small loans to underserved populations

Answer: d) By providing small loans to underserved populations

Which organization typically regulates and supervises microfinance institutions like Infinity Microfinance Bank?

a) Federal Reserve

b) World Bank

c) Central Bank of the country

d) United Nations

Answer: c) Central Bank of the country

What is the primary source of revenue for Infinity Microfinance Bank?

a) Donations from charitable organizations

b) Government subsidies

c) Interest and fees from loans

d) Foreign aid

Answer: c) Interest and fees from loans

How does Infinity Microfinance Bank help clients build financial literacy and management skills?

a) By not offering financial education programs

b) Through mandatory financial literacy courses

c) By providing access to online video games

d) By partnering with NGOs for training

Answer: d) By partnering with NGOs for training

What is the typical repayment period for loans at Infinity Microfinance Bank?

a) 10 years

b) 5 years

c) 1 year

d) 6 months

Answer: c) 1 year

How does Infinity Microfinance Bank manage the risk of currency fluctuations for its international operations?

a) By avoiding international operations

b) Through currency hedging strategies

c) By setting fixed exchange rates

d) By relying on client deposits

Answer: b) Through currency hedging strategies

Which of the following is a key principle of microfinance, including Infinity Microfinance Bank?

a) High-interest rates for all clients

b) Promoting financial inclusion

c) Exclusive focus on large corporations

d) Limiting services to urban areas

Answer: b) Promoting financial inclusion.