Rex Microfinance Bank Test Questions and Answers

Rex Microfinance Bank Test Questions and Answers

Here are 20 sample questions for a Rex Microfinance Bank quiz, along with multiple-choice options and answers:

What is the primary function of Rex Microfinance Bank?

A) Providing healthcare services

B) Offering microloans to small businesses

C) Selling electronic gadgets

D) Managing real estate properties

Answer: B) Offering microloans to small businesses

In which country is Rex Microfinance Bank headquartered?

A) United States

B) Germany

C) Nigeria

D) India

Answer: C) Nigeria

What does the "micro" in microfinance refer to?

A) Small loans for ants

B) Loans for microorganisms

C) Financial services for small businesses and low-income individuals

D) Minimal interest rates

Answer: C) Financial services for small businesses and low-income individuals

Who is typically the target clientele of microfinance institutions like Rex Microfinance Bank?

A) Fortune 500 companies

B) High net worth individuals

C) Low-income individuals and small entrepreneurs

D) Celebrities and athletes

Answer: C) Low-income individuals and small entrepreneurs

Which financial product is commonly offered by microfinance institutions?

A) Mortgage loans

B) Credit cards

C) Savings accounts

D) Car loans

Answer: C) Savings accounts

What is the main objective of microfinance?

A) Maximizing profits

B) Reducing poverty and promoting financial inclusion

C) Funding large corporations

D) Speculating in the stock market

Answer: B) Reducing poverty and promoting financial inclusion

How do microfinance institutions like Rex Microfinance Bank typically assess the creditworthiness of borrowers?

A) Credit scores

B) Collateral

C) Social media followers

D) Random selection

Answer: B) Collateral

What is the term for the interest rate charged on microloans by microfinance institutions?

A) APR (Annual Percentage Rate)

B) IRA (Individual Retirement Account)

C) FICO score

D) HSA (Health Savings Account)

Answer: A) APR (Annual Percentage Rate)

What is the Grameen Bank, and how is it related to microfinance?

A) A famous restaurant chain

B) A leading microfinance institution in Bangladesh

C) A type of cryptocurrency

D) A microbrewery

Answer: B) A leading microfinance institution in Bangladesh

Which Nobel laureate is known for his significant contributions to the field of microfinance?

A) Albert Einstein

B) Martin Luther King Jr.

C) Nelson Mandela

D) Muhammad Yunus

Answer: D) Muhammad Yunus

What is the primary source of funding for microfinance institutions like Rex Microfinance Bank?

A) Government grants

B) Private donations

C) Customer deposits

D) International development organizations

Answer: C) Customer deposits

In microfinance, what does the term "group lending" refer to?

A) Lending to groups of wealthy individuals

B) Lending to borrowers with no group affiliation

C) Providing loans to groups of individuals who guarantee each other's repayment

D) Lending to government agencies

Answer: C) Providing loans to groups of individuals who guarantee each other's repayment

Which of the following is NOT a key principle of microfinance?

A) High-interest rates

B) Financial sustainability

C) Social performance and impact

D) Client-centered approach

Answer: A) High-interest rates

What is the role of a microfinance loan officer at Rex Microfinance Bank?

A) Serving coffee to customers

B) Managing social media accounts

C) Assessing loan applications and disbursing loans

D) Repairing ATMs

Answer: C) Assessing loan applications and disbursing loans

What is the primary benefit of microfinance for borrowers?

A) Guaranteed employment

B) Easy access to luxury goods

C) Poverty reduction and economic empowerment

D) Free vacations

Answer: C) Poverty reduction and economic empowerment

Which regulatory authority oversees microfinance institutions in Nigeria?

A) Federal Aviation Administration (FAA)

B) Central Bank of Nigeria (CBN)

C) World Health Organization (WHO)

D) Federal Reserve System (FRS)

Answer: B) Central Bank of Nigeria (CBN)

What is the key difference between microfinance and traditional banking?

A) Microfinance serves only large corporations.

B) Microfinance focuses on low-income clients and small businesses.

C) Traditional banks have lower interest rates.

D) Traditional banks offer only online services.

Answer: B) Microfinance focuses on low-income clients and small businesses.

What is the term for the process of repaying a microloan in small, frequent installments?

A) Bullet payment

B) Lump-sum payment

C) Amortization

D) Balloon payment

Answer: C) Amortization

What is the social impact goal of microfinance institutions like Rex Microfinance Bank?

A) Maximizing shareholder profits

B) Reducing income inequality

C) Providing free education to all

D) Creating luxury lifestyle products

Answer: B) Reducing income inequality

What is the role of Rex Microfinance Bank in promoting financial inclusion?

A) Offering loans only to wealthy individuals

B) Providing financial services to underserved and unbanked populations

C) Investing in large corporations

D) Running a luxury resort

Answer: B) Providing financial services to underserved and unbanked populations.