Regarding the financialization of household savings, which of the following statements best reflect the solutions that are implied by the passage?
- 1.A flexible environment is needed to develop solutions.
- 2.Households need customised solutions.
- 3.Innovations in financial technology are required.
Select the correct answer using the code given below:
Answer & explanation
Answer: (d) 1, 2 and 3
The passage lists the hurdles to financialization: onerous bureaucracy, scepticism of formal institutions, lack of information about which of many services suits each family, and difficulty in switching between them. Each suggested solution answers one of these hurdles, so all three are implied.
- ✓ 1. 'Onerous bureaucracy' is a named hurdle; a flexible, less rigid environment is the implied answer.
- ✓ 2. People lack information on which service 'is best for each family', so solutions must be suited to each household.
- ✓ 3. Financial technology can give easy information, simpler access and smoother switching between providers — the remaining hurdles.
Remember · For implied solutions, match each hurdle the passage lists to a remedy; a remedy that answers a named hurdle is implied.
Question and answer: UPSC's official GS Paper II (2023, Series A) — paper ↗ · answer key ↗. Explanation: Minimalist IAS, checked 30 Sept 2026 (how we verify). ·