Catherine Dustrude • Chapter 7 • Question 6

The section that stuck out to me the most was about financial instruments and the four most important aspects: raising money, protecting it, taking risks, and inferring what may change and how. These four things could even be applied to any good or service, and could specify just by applying small changes. This truly is the the naked, simple version of Econ, which helps me to understand just how much common sense is involved. One question I had while reading the chapter was in the Raising Capital section, page 151. What does it mean that the lady in Uganda had a repayment rate on the micro-loans of 96 percent? Or is that the microcredit lender who had the repayment rate so high? What is a repayment rate?