Microcredit loans typically are used to __________.
A. buy a home
B. start a small business out of one’s home
C. improve infrastructure
D. open a store or restaurant
Answer (2)
Microcredits are usually small which is why they're micro. That's why the correct answer is B. start a small business out of ones home. This is usually a small amount of money, for example, enough to buy a sewing machine and supplies that you need to be a tailor or something similar. The other options often include large sums of money.
Microcredit loans are primarily used to start small businesses out of one's home, making option B the correct choice. These loans help individuals, especially in low-income communities, gain access to capital to become entrepreneurs. They typically involve small amounts of money aimed at empowering borrowers to lift themselves out of poverty.
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