What sort of information do you need to assess

Reference no: EM131915995

Problem

A microfinance institution charges interest rates that approach those charged by informal moneylenders. Why might the institution provide social benefi ts, even though the interest rate it charges is high relative to those charged by commercial banks? What sort of information do you need to assess whether the pricing strategy of this particular institution is socially optimal?

Reference no: EM131915995

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