The Grameen Bank, founded in Bangladesh by Nobel Peace Prize Laureate,

Summary: Grameen Bank is a model of social business and not for profit.
It expanded, reported profits and contributed to the development of Bangladesh.
Other countries tried to replicate the success of Grameen Bank but failed to do so.

1. Which of the following best captures the main idea of the passage?

A.To explain a model and a reason behind its limited success in some countries - Correct
B.To show how the focus of a concept changed as it achieved success with time - The focus of Grameen Bank as a concept did not change.
C.To explain the reason behind the success of a concept in South East Asian countries - Opposite.
D.To highlight how a model is a not very ideal one for-profit oriented microfinance oriented organizations - Partial scope.
E.To discuss the various models of microfinance operational in countries within and outside South East Asia - Not relevant

Answer: A

2. Which one of the following statements can be inferred about the for-profit microfinance institutions?
A.The coexistence of profit and development under the Grameen model was not interpreted correctly by such institutions - Correct
B.They are profitable models of social business. - Opposite. They were not started with the intentions of profit
C.They were responsible for the complete failure of Grameen as a model of microfinance. - Not stated.
D.Such institutions are not operational in Bangladesh. - Not stated
E.Such institutions are not likely to offer loans to applicants who do not have any collateral security to offer. - Opposite. They offer no collateral loans at high interest .

Answer: A

3.According to the passage, which one of the following statements is true?
A.When Grameen started functioning, there were fewer people in the urban areas of Bangladesh who applied for a loan from it than there were when it became more successful - No information on the number of people who applied for loan in the urban areas before and after it became popular.
B.There is a limited scope of Grameen’s success in countries outside South East Asia. - There may be scope but the intention was different in countries outside South East Asia.
C.Microfinance as a concept is more successful for for-profit oriented microfinance institutions than for Grameen. - Not stated.
D.Granting a sum of money as charity to the poor is not a part of Grameen’s operations. - Correct. Grameen gave out loans and did not grant money as charity to the poor.
E.Institutions offering traditional loans charge much higher interest rates than Grameen does. - Not stated.

Answer: D