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Question : The Grameen Bank, founded by Muhammad Yunus, is associated with which concept of rural development?

Option 1: Microfinance
 

Option 2: Rural electrification
   

Option 3: Sustainable agriculture

 

Option 4: Skill development


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Microfinance
 


Solution : The correct answer is (a) Microfinance

The Grameen Bank is a renowned institution that pioneered the concept of microfinance. It was established in Bangladesh in 1983 with the goal of providing financial services to the poor, particularly women, who were previously excluded from accessing traditional banking services.

The Grameen Bank's microfinance model involves providing small loans, also known as microloans or microcredit, to individuals who lack collateral or a credit history. These loans are typically used to support income-generating activities or small businesses, allowing borrowers to lift themselves out of poverty and improve their livelihoods.

Muhammad Yunus, the founder of the Grameen Bank, was awarded the Nobel Peace Prize in 2006 for his efforts in developing and promoting microfinance as a tool for poverty alleviation and rural development. The Grameen Bank's success and its microfinance model have inspired similar initiatives and institutions worldwide, contributing to the expansion of financial inclusion and empowerment of marginalized communities.

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