Microlenders offer small loans to borrowers who are unable to get loan

Question

Microlenders offer small loans to borrowers who are unable to get loans from traditional lenders. These borrowers are people in poverty who have no credit history, collateral, or steady employment. Microlending programs allow very poor people to develop or expand self-employment projects that generate additional income and lead them out of poverty. For example, a $100 microloan helped a Sri Lankan woman purchase equipment to produce candy from locally available raw materials. Since the initial investment, her business has grown to employ six women from her community, who are now her partners. Microcredit originated in the 1970s, when Professor Mohammad Yunus, a Bangladeshi economist, discovered the power of making very small personal loans to poor basket weavers. In 1983, he founded the Grameen Bank, which now has over 2,500 branches and 20,000 employees, and is 90 percent owned by borrower shareholders. In 2006, Professor Yunus was awarded the Nobel Peace Prize for "efforts to create economic and social development from below." In 2009, more than 128 million families received microloans, according to the Microcredit Summit Campaign. Over 80 percent of those receiving microloans are women, who have proved to be lower credit risks than men and consistently reinvest in their families and communities. In their press release, members of the Nobel Committee acknowledged that "lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means."    1 
 1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit.
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
C. explain that women are better credit risks than men.
D. demonstrate that microcredit is an ineffective way to bring families up from poverty.
E. predict the future of microcredit.

2 
 2. The author of this passage would most likely agree with which of the following statements?

A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients. 
B. Microcredit is a virtually risk-free investment.
C. Microloans have only a small impact on relatively few people.
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
E. The microcredit model works only in third-world countries.

3 
 3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace.
B. confirm that microlending has successfully led people out of poverty.
C. illustrate the prestige of winning the award.
D. argue that development from below is more effective than traditional large-scale economic development programs.
E. defend against critics who feel that microlending is ineffective.

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Passage # 21 Date: 15-Jan-2021
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Sajjad1994 · Accepted Answer

Explanation

1. The author's primary objective in the passage is to

Explanation

This is a global question and the answer would be one which cover all the passage as whole let’s have a look at each answer choice.

A. introduce readers to the concept and history of microcredit.

Author starts from introducing the concept of microlending, then states what microlenders do. Author also discusses the benefits of microlending and provided one example of Dr. Yunus. This option looks pretty fine, let’s keep it until we find something better than this.

B. chronicle Professor Yunus's path to the Nobel Peace Prize.

Although author discusses the Dr. Yunus and how he won the Nobel Peace Prize but that was given just as an example to show how important microlending is for the economy of any nation. This is just a fractional part and didn’t cover the complete passage as a whole. Eliminate.

C. explain that women are better credit risks than men.

Author discusses this in a very tiny fraction, this definitely can’t be the main purpose of the author. Eliminate.

D. demonstrate that microcredit is an ineffective way to bring families up from poverty.

This is totally opposite what is written in the passage. Easy elimination.

E. predict the future of microcredit.

Not really! Author didn’t discuss the future of the microcredit, rather he/she stated that how important it can be for the betterment of any nation and pull them out of the poverty. Eliminate this one too.

After reading all the option only option A is the one which covers most part of the passage.

Answer: A

2. The author of this passage would most likely agree with which of the following statements?

Explanation

A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients.

This choice is just a distortion of the information provide in the passage and its aim is to distract the test taker and their thinking. There is no such evidence present in the passage. Eliminate it.

B. Microcredit is a virtually risk-free investment.

This choice is ambiguous, we cannot decide whether this option is talking about the lenders point of view or the loan taker’s point of view, nonetheless this information is not guaranteed by the passage too. According to the lines in the passage:

“Over 80 percent of those receiving microloans are women, who have proved to be lower credit risks than men”

It is clear that there is risk in the microlending up to some extent so answer choice distorting the information given in the passage. Eliminate.

C. Microloans have only a small impact on relatively few people.

This information is not warranted by the passage, this could be opposite or could be unrelated to the passage, The direction about this information is not clearly given in the passage. Eliminate it.

D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.

Yes this could be possible but let’s first find the support from the passage:

“a Bangladeshi economist, discovered the power of making very small personal loans to poor basket weavers. In 1983, he founded the Grameen Bank, which now has over 2,500 branches and 20,000 employees, and is 90 percent owned by borrower shareholders.”

This option looks valid but let’s keep searching for the better option than this.

E. The microcredit model works only in third-world countries.

Although author has provided one short example of a Sri Lankan woman but that doesn’t suggests that the model works only in the third world countries, the purpose of that example was to show how micro lending help out people bringing them out of poverty. This is extreme answer choice, eliminate it.

Keeping all option in view only option D stands

Answer: D

3. The author first quotes the Nobel Committee in order to

Explanation

A. state that microlending leads to world peace.

Microlending leads to the world peace is too strong or extreme to consider. Keeping in mind the knowledge we have gained by reading the passage we cannot infer this with guarantee. Although it is written in the passage that world peace is not possible if there huge population is dealing with poverty but that doesn’t guarantee that micro lending will be degree of world peace. Let’s find something better than this.

B. confirm that microlending has successfully led people out of poverty.

Yes this information can be validated, according to the passage:

Nobel Committee acknowledged that  "lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means."  The word  “acknowledged”  is important here. With the help of above lines we can be sure about this choice. Let’s keep it.

C. illustrate the prestige of winning the award.

Dr Yunus didn’t introduces the microlending model to get the Nobel Prize, His work of pulling his people out of poverty eventually leads him to earn a Nobel Peace Prize, This option is a distortion and providing information with the false angel. Eliminate.

D. argue that development from below is more effective than traditional large-scale economic development programs.

This is again providing the information which lays outside of the scope of the passage, there is nothing available in the passage which details the comparison of development from below and large-scale development programs. Eliminate.

E. defend against critics who feel that microlending is ineffective.

Nothing is provided about the critics of micrlending, same as D this answer choice also try to inducting the outside information. Eliminate.

Keeping in view the all five answer option here only option B stands.

Answer: B

Vie3nrose · Answer

Question 1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit.
 CORRECT   -- The passage opens with introducing the reader to what microlenders do, and how microcredit helps lead people out of poverty. It then describes the origin, growth, and impact of microcredit (in line with answer choice A).
 
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
 INCORRECT   -- Although Professor Yunus is introduced in the second half of the passage, he is mentioned as a part of the origin of microcredit and is not the main focus of the passage itself. 
 
C. explain that women are better credit risks than men.
 INCORRECT   -- Near the end of the passage, the author mentions in passing that "Over 80 percent of those receiving microloans are women, who have proved to be lower credit risks than men". This was mentioned to provide more information on the history and context of microcredit, which is the main objective of the passage.
 
D. demonstrate that microcredit is an ineffective way to bring families up from poverty.
 INCORRECT   -- On the contrary, the author states at the beginning of the passage that "Microlending programs allow very poor people to develop or expand self-employment projects that generate additional income and  lead them out of poverty ", and includes an example of a successful Sri Lankan candy producer who started with a $100 microloan.
 
E. predict the future of microcredit.
 INCORRECT   -- Out of scope: the author is focused on discussing the history and growth of microcredit, not on speculating what the future will be. At the end the author quotes the Nobel Committee that microcredit is a means for lasting peace, but this is merely a quote and the author does offer his own opinion.

Question 2. The author of this passage would most likely agree with which of the following statements?
 
A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients.
 INCORRECT   -- The author positions microlending as an alternative to traditional lenders, which "allow very poor people to develop or expand self-employment projects that generate additional income and lead them out of poverty". This passage mostly focuses on the success and positive socio-economic impact of microcredit, with no mention of criticisms on microlenders/ the microcredit model. 
 
B. Microcredit is a virtually risk-free investment.
 INCORRECT   -- The author never explicitly states that this model is low-risk, although based on the profile of the borrowers ("people in poverty who have no credit history, collateral, or steady employment") low-risk seems unlikely without more information. 
 
C. Microloans have only a small impact on relatively few people.
 INCORRECT   -- On the contrary, the author provides statistics that strongly imply the opposite (large impact on many people): "In 1983, he founded the Grameen Bank, which now has over 2,500 branches and 20,000 employees... In 2009, more than 128 million families received microloans".
 
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
 CORRECT   -- Evidently, Yunus's microcredit model has had a huge positive social impact ("Nobel Committee acknowledged that "lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means"). Yunus's Grameen bank must also be successful as a business, if it "now has over 2,500 branches and 20,000 employees". In addition, the microcredit model gives people in poverty the opportunity "to develop or expand self-employment projects that generate additional income and lead them out of poverty". Their business success can also lead to increased employment within their communities (i.e. the Sri Lankan candy maker), further demonstrating how business interests and social impact can be aligned. 
 
E. The microcredit model works only in third-world countries.
 INCORRECT   -- The author never states that the microcredit model only works in 3rd world countries, only that "Microlenders offer small loans to borrowers who are unable to get loans from traditional lenders... people in poverty who have no credit history, collateral, or steady employment." (a demographic that exists in every country in the world)

Question 3. The author first quotes the Nobel Committee in order to
 
A. state that microlending leads to world peace.
 INCORRECT   -- This answer choice seems correct, except that it was technically the second quote in the passage associated with the Nobel Committee/ right at the end of the passage ("the Nobel Committee acknowledged that "lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means.""). Since this questions specifies "first quotes", I prefer answer choice B. 
 
B. confirm that microlending has successfully led people out of poverty.
 CORRECT   -- The first quote in the passage associated with the Nobel Committee is "Professor Yunus was awarded the Nobel Peace Prize for "efforts to  create economic and social development from below ,"" right alongside a list of successes and positive social impact that microcredit has realized. (winning the Nobel Peace prize would be the highest recognition for that achievement) 
 
C. illustrate the prestige of winning the award.
 INCORRECT   -- Although the Nobel Peace prize is definitely prestigious, the purpose of the information and quote is to emphasize the incredible impact that microcredit has had on socio-economic development. 
 
D. argue that development from below is more effective than traditional large-scale economic development programs.
 INCORRECT   -- Out of scope: Although the author has made a strong case that development from below can be extremely effective, the author did not compare against traditional large-scale development at all. 
 
E. defend against critics who feel that microlending is ineffective.
 INCORRECT   -- Out of scope: In fact, there is no mention of any criticism against the microcredit model at all (based on this passage, microlending seems like an ideal model)

HoneyLemon · Answer

-- 
  Author is providing some facts about micro lenders , followed by examples and a bit of history about micro lending process. We can say ,tone of the passage is neutral , since that is no opinion of Author..

1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit. 
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
C. explain that women are better credit risks than men.
D. demonstrate that microcredit is an ineffective way to bring families up from poverty.
E. predict the future of microcredit.

imo , -- Option A, is correct  . Since The author is intending to provide some facts about microlending and its history
 
  Option B and C is partial scope of the psg and that is not the intention of the author .
Option D is not correct since author is providing facts about microcredit is an effective way to bring families up from poverty. 
Option E is out of scope as author hasn't given any prediction

2. The author of this passage would most likely agree with which of the following statements?

A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients. 
B. Microcredit is a virtually risk-free investment.
C. Microloans have only a small impact on relatively few people.
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
E. The microcredit model works only in third-world countries.

imo , -- Option D, is correct  . Since The author has demonstrated facts about professor ,who is a economist and founder of Grameen Bank , to help poor people. So the business interest and social consciousness are not mutually exclusive.  
  Option A , B and C is Out of scope , there is no information given about these choices
Option E is out of scope as as well

3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace.
B. confirm that microlending has successfully led people out of poverty.
C. illustrate the prestige of winning the award.
D. argue that development from below is more effective than traditional large-scale economic development programs.
E. defend against critics who feel that microlending is ineffective.

imo , -- Option B, is correct  . Since the author want to qualify that the concept of micro lending is successful .  
  Option A , C,D and E is Out of scope , there is no information given about these choices

Sumi1010 · Answer

The passage follow the structure as - 
Introduction of microlending, Impact with example. Origin and achievements, Acknowledgment of its importance.

1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit.
 The passage introduces microcredit and goes on to its historical impacts with example. The passage tries to introduce its development and the underlying concept of working too. Correct. 
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
 This is not the primary objective. The passage brings in Professor Yunus while introducing the microcredit, but it does not follow the life of the professor.  
C. explain that women are  better  credit risks than men.
 The passage says "Over 80 percent of those receiving microloans are women, who have proved to be  lower credit risks  than men" while talking the eventual achievements, but such comparison is not the prime focus of the passage.  
D. demonstrate that microcredit is an  ineffective way to bring families  up from poverty.
 This information is not supported in the passage. The passage does not talk on the negative aspects of microcredit. 
E. predict the future of microcredit.
 The passage refrain to comment the future of microcredit and limits to its history and current status only.

A

2. The author of this passage would  most likely agree  with which of the following statements?

A.  Microlenders are foolish  not to insist on credit scores and collateral from their potential clients.
 The author's tone is non-negative or non-criticizing . The passage does not talk on the negative aspects of microcredit. 
B. Microcredit is a virtually risk-free investment.
 When the author says "Over 80 percent of those receiving microloans are women, who have proved to be lower credit risks than men " , he talks about the risks and can't imply that microcredit is a risk-free investment. 
C. Microloans have only a small impact on relatively few people.
 The author can't agree with it when the passage says "In 2009, more than 128 million families received microloans" . The impact on 128 million families may not considered small. 
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
 Professor Yunus discovered the power of small loans. He was awarded the Nobel Peace Prize for "efforts to create economic and social development from below." Thus, authoris most likely agree that the professor demonstrated the connectivity between business interests and social consciousness.  
E. The microcredit model works only in  third-world countries. 
 There is no mention of what these third-world countries are.

D

3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace.
 Nobel Committee acknowledged that "lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means." This implies that microlending is one of the means to achieve the peace. Correct. 
B.  confirm  that microlending has successfully led people out of poverty.
 With the quotes, the author does not claim or confirm that microlending has successfully led people out of poverty. Microlending may be the means to break out the poverty in order to achieve the peace, but the implication is not to confirm it. 
C. illustrate the prestige of winning the award.
 The author limits to talk on the well-known prestige of the noble prize and echoes the word of committee to underline the role of microcredit. 
D.  argue  that development from below is more effective than traditional large-scale economic development programs.
 There is no such comparison stated or implied from the passage.  
E. defend against critics who feel that microlending is ineffective.
 The author does not mention of what critics say hence the quotes are not defensive ones.

A

RashmikaAnegama · Answer

1. The author's primary objective in the passage is to

More emphasis were made on the history and concept of microcredit. So, A is the answer.
 A. introduce readers to the concept and history of microcredit. 
 B. chronicle Professor Yunus's path to the Nobel Peace Prize. 
No, this is not the author's primary objective, it was about microlending and not about Yunu. So, eliminate B.
 C. explain that women are better credit risks than men. 
Yes, this is a point explained in the passage, but not the primary objective.
 D. demonstrate that microcredit is an ineffective way to bring families up from poverty. 
It's in fact an effective way to eradicate poverty
 E. predict the future of microcredit. 
Out of scope.

2. The author of this passage would most likely agree with which of the following statements?

This requires an answer which supports microlending.
 A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients. 
The main advantage of microlending is to lend poor who have no credit history, So eliminate A.
 B. Microcredit is a virtually risk-free investment. 
Yes, yes, yes!
 C. Microloans have only a small impact on relatively few people. 
With the examples given in the passage, it's clear that the impact is high, So eliminate C
 D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive. 
They are!
 E. The microcredit model works only in third-world countries. 
No, nothing like that was mentioned.

3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace. 
Yes, notice the last few lines of the passage, when poverty decreases -> Peace increases and microlending is actually helping it.
 B. confirm that microlending has successfully led people out of poverty. 
 C. illustrate the prestige of winning the award. 
This is very weak statement.
 D. argue that development from below is more effective than traditional large-scale economic development programs. 
No argument is made regarding this.
 E. defend against critics who feel that microlending is ineffective. 
Nope. It's actually stating about peace.

So, IMO, the answers are A,B,A

Deepakjhamb · Answer

1. The author's primary objective in the passage is to

answer is a) introduce readers to the concept and history of microcredit.

A. introduce readers to the concept and history of microcredit:  yes this is the answer as other options can be eliminated and the passage is all about concept of microcredit and the history of microcredit . 
B. chronicle Professor Yunus's path to the Nobel Peace Prize :  this is just partial scope 2-3 lines which tells about Yunus getting Nobel Peace Prize for being the originator for Microcredit . Actually passage is more about Microcredit than chronicle Yunus's path to Nobel Prize .Full scope of passage is covered under introducing readers to the concept and history of microcredit. 
C. explain that women are better credit risks than men: actually this is just 1 line in passage and just some very small part of scope . Full scope of passage is covered under introducing readers to the concept and history of microcredit. 
D. demonstrate that microcredit is an ineffective way to bring families up from poverty:  actually this is reversal of facts in passage - passage actually says that Microcredit is one such means for large population groups to find ways to break out of poverty. So its out as its 180 degree opposite of what author wants to convey . 
E. predict the future of microcredit:  Nowhere in the passage any prediction on the future of microcredit is done , this is out of scope .scope of passage is covered under introducing readers to the concept and history of microcredit.

2. The author of this passage would most likely agree with which of the following statements?

answer is d)Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive. 
A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients:  actually nowhere discussion on foolishness on part of microlenders on not insisting on on credit scores and collateral from their potential clients is there in the passage . So this is external information , so out  
B. Microcredit is a virtually risk-free investment: nowhere in passage is it said that microcredit is virtaully risk free investment , this is also external information , so its out . Only some comparison on women being proven to be lower credit risk than men is mentioned . 
C. Microloans have only a small impact on relatively few people:  actually this is reversal of facts in the passage , the passage says in last line that Microcredit is one such means for large population groups find ways to break out of poverty, so its out  
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive:  yes this looks fine as all other options can be eliminated and because this line in para demonstrates it - In 1983, he founded the Grameen Bank, which now has over 2,500 branches and 20,000 employees, and is 90 percent owned by borrower shareholders .So have an illustration for business being run where Grameen bank has so many branches , so many employees and 90% owned by money borrower sharesholders .Then its also given in passage- illustrating social consiousness that - In 2006, Professor Yunus was awarded the Nobel Peace Prize for "efforts to create economic and social development from below.". So we can say that Yunus demonstrated that business interests and social consciousness are not mutually exclusive.

E. The microcredit model works only in third-world countries.:  Only is a very extreme word and we cannot infer that microcredit works only in third -world countries . This is a trap since exmaples of Third world countries like Bangladesh and Sri lanka are given while explaining micro-credit , so its out

3. The author first quotes the Nobel Committee in order to

answer is b) confirm that microlending has successfully led people out of poverty. 
A. state that microlending leads to world peace :  actually author says that large population groups finding ways to break out of poverty is necessary for lasting peace and Microcredit is one such way for large population to break out of poverty . So Microcredit is actually one of the ways which helps in the necessary condition of lasting peace. Thus microfinance is not sufficient condition to lasting peace . Also passage says lasting peace and the answer says world peace which could be inferred in different manner for distinction between regional or world peace 
B. confirm that microlending has successfully led people out of poverty:  yes this is the answer , as author says that large population groups finding ways to break out of poverty is necessary for lasting peace and Microcredit is one such way for large population to break out of poverty . So yes the author uses this qoute to confirm that microlending has successfully led people out of poverty as its a means for large population to break out of poverty  
C. illustrate the prestige of winning the award:  no author does not want to illustrate the prestige of winning the award,on the contrary author wants to stress on microcredit as a means to successfully lead people out of poverty through the qoute in the passage 
D. argue that development from below is more effective than traditional large-scale economic development programs:  no such comparison on development from below being more effective than traditional large-scale economic development programs is mentioned in qoute .author just wants to stress on microcredit as a means to successfully lead people out of poverty through the qoute in the passage 
E. defend against critics who feel that microlending is ineffective:  in the passage there is no mention of any critic feeling that microlending is ineffective , so there is no question of Nobel Committee giving this qoute to defend from critics of microlending , so its out

Pankaj0901 · Answer

Answer IMO:
1. A
2. D
3. D

1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit.
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
C. explain that women are better credit risks than men.
D. demonstrate that microcredit is an ineffective way to bring families up from poverty.
E. predict the future of microcredit.
  Answer A  - The passage starts by defining Microlending and thus introduces the concept. And then explains the benefits and how it started and eventually shaped by introducing a few key examples from history.

2. The author of this passage would most likely agree with which of the following statements?

A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients.
B. Microcredit is a virtually risk-free investment.
C. Microloans have only a small impact on relatively few people.
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
E. The microcredit model works only in third-world countries.
  Answer D : The only apt answer via POE. Option D- Professor Yunus with an objective to alleviate poverty and help scale micro-businesses where a poor doesn't have enough money to start a business, it can be concluded that these 2 factors need not be dependent on each other and are mutually exclusive.

3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace.
B. confirm that microlending has successfully led people out of poverty.
C. illustrate the prestige of winning the award.
D. argue that development from below is more effective than traditional large-scale economic development programs.
E. defend against critics who feel that microlending is ineffective.
  Answer D : It intends to establish the fact that unless the people at bottom-most pyramid, poor people, put an effort to come out of poverty, it is not really possible to alleviate poverty altogether. This also sets up the base that it is more effective than traditional large-scale programs.

Tahamohsin · Answer

Hurrary, last passage of this competion.

1. The author's primary objective in the passage is to

More emphasis were made on the history and concept of microcredit. So, A is the answer.
A. introduce readers to the concept and history of microcredit.
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
No, this is not the author's primary objective, it was about microlending and not about Yunu. So, eliminate B.
C. explain that women are better credit risks than men.
Yes, this is a point explained in the passage, but not the primary objective.
D. demonstrate that microcredit is an ineffective way to bring families up from poverty.
It's in fact an effective way to eradicate poverty
E. predict the future of microcredit.
Out of scope.

2. The author of this passage would most likely agree with which of the following statements?

This requires an answer which supports microlending.
A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients.
The main advantage of microlending is to lend poor who have no credit history, So eliminate A.
B. Microcredit is a virtually risk-free investment.
Yes, yes, yes!
C. Microloans have only a small impact on relatively few people.
With the examples given in the passage, it's clear that the impact is high, So eliminate C
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
They are!
E. The microcredit model works only in third-world countries.
No, nothing like that was mentioned.

3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace.
Yes, notice the last few lines of the passage, when poverty decreases -> Peace increases and microlending is actually helping it.
B. confirm that microlending has successfully led people out of poverty.
C. illustrate the prestige of winning the award.
This is very weak statement.
D. argue that development from below is more effective than traditional large-scale economic development programs.
No argument is made regarding this.
E. defend against critics who feel that microlending is ineffective.
Nope. It's actually stating about peace.

So, IMO, the answers are A,B,A

KART0506 · Answer

1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit.- correct  , the passage talks about how micro credit came into picture and history of it.
B. chronicle Professor Yunus's path to the Nobel Peace Prize.  Incorrect  , the primary objective of the passage is not about how Professor won the Nobel Peace Prize.
C. explain that women are better credit risks than men.- Incorrect  .though women are better credit risks than men but the primary objective is not that. 
D. demonstrate that microcredit is an ineffective way to bring families up from poverty.  Incorrect  –Microcredit proves to be an effective way .Opposite ans
E. predict the future of microcredit. Incorrect  –Nobody or no where there is a prediction of micro credit .
2. The author of this passage would most likely agree with which of the following statements?

A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients. Incorrect , irrelevant.
B. Microcredit is a virtually risk-free investment. Correct  , mico credit has helped various people to help them overcome poverty.
C. Microloans have only a small impact on relatively few people.- Incorrect  , rather this created a great impact.
D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive. Incorrect  .
E. The microcredit model works only in third-world countries. Incorrect  , there is no mention regarding the countries where it works well and where it doesn’t .

3. The author first quotes the Nobel Committee in order to
A. state that microlending leads to world peace. Incorrect  , the author has not mentioned world peace .
B. confirm that microlending has successfully led people out of poverty. Correct  , as stated around the lines “lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means”
C. illustrate the prestige of winning the award. Incorrect  , irrelevant .
D. argue that development from below is more effective than traditional large-scale economic development programs.  Incorrect  , author doesn’t bring any comment on how much the program will be effective.
E. defend against critics who feel that microlending is ineffective. Incorrect  , the author doesn’t defend anything .

Neha2404 · Answer

Imo- A
1. The author's primary objective in the passage is to

A. introduce readers to the concept and history of microcredit.
CORRECT 
B. chronicle Professor Yunus's path to the Nobel Peace Prize.
-INCORRECT 
C. explain that women are better credit risks than men.
incorrect - no comparison between men and women given

D. demonstrate that microcredit is an ineffective way to bring families up from poverty.-incorrect

E. predict the future of microcredit.- incorrect

Imo-D

2. The author of this passage would most likely agree with which of the following statements?

A. Microlenders are foolish not to insist on credit scores and collateral from their potential clients. -incorrect

B. Microcredit is a virtually risk-free investment.-
incorrect not mentioned in passage

C. Microloans have only a small impact on relatively few people.
Incorrect -use of only make it extreme

D. Professor Yunus has demonstrated that business interests and social consciousness are not mutually exclusive.
Correct

E. The microcredit model works only in third-world countries.
Incorrect -use of only make it extreme

IMO-b

3. The author first quotes the Nobel Committee in order to

A. state that microlending leads to world peace.
Incorrect word peace make is incorrect

B. confirm that microlending has successfully led people out of poverty.
Correct-members of the Nobel Committee acknowledged that "lasting peace cannot be achieved unless large population groups find ways to break out of poverty. Microcredit is one such means."
According to supporting lines

C. illustrate the prestige of winning the award.
INCORRECT- author is not illustrate the prestige of winning the award.

D. argue that development from below is more effective than traditional large-scale economic development programs.
Incorrect Author is not argue that development from below is more effective than traditional large-scale economic development programs.

E. defend against critics who feel that microlending is ineffective.
Incorrect- $Author not defend against critics who feel that microlending is ineffective.

Posted from my mobile device

Sajjad1994 · Answer

Hello Everyone!

OAs of this RC have been revealed, this is a Medium-Hard level passage, First question is easy, Second questions is hard, with options C and D as the competitors. The last question is medium level.
 
Excellent  Vie3nrose  and  Deepakjhamb

VerbalBot · Answer

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Microlenders offer small loans to borrowers who are unable to get loan

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GMAT Reading Comprehension (RC) Questions

Microlenders offer small loans to borrowers who are unable to get loan

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615 to 715 in 15 Days (Ria's Strategies)

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