UPSC CSE Prelims
Question 75
Microfinance is the provision of financial services to people of low-income groups. This includes both the consumers and the self-employed. The service/services rendered under microfinance is/are :
- Credit facilities
- Savings facilities
- Insurance facilities
- Fund Transfer facilities
Select the correct answer using the codes given below the lists :
View correct answer and explanation
Correct answer: D
Correct Option: D
Explanation: Microfinance encompasses appropriate small-scale financial services for low-income users, including savings, credit, microinsurance and transfer/remittance services.
Statement / Item-wise Analysis:
1: Correct - Correct: small-value loans are a major microfinance product.
2: Correct - Correct: safe savings products help households manage irregular income.
3: Correct - Correct: microinsurance protects low-income borrowers against risks.
4: Correct - Correct: remittance or fund-transfer services are part of inclusive microfinance.
Option-wise Analysis:
A: Incorrect - omits supported items 2, 3, 4.
B: Incorrect - omits supported items 2, 3.
C: Incorrect - omits supported items 1, 4.
D: Correct - includes the supported statements and excludes the unsupported ones.