Official Answer Key & Detailed Solution
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Correct Answer: Option (D) — 1, 2, 3 and 4
Concept & Option Breakdown
Standard Reference VerifiedMicrofinance is not restricted merely to microcredit; it encompasses a complete suite of basic financial products for low-income households:
- Microcredit: Small collateral-free loans for consumption and income generation.
- Microsavings: Safe deposit options to encourage financial discipline.
- Microinsurance: Affordable life, health, and crop risk coverage.
- Remittance/Fund Transfers: Low-cost mechanisms enabling migrant workers and families to transfer funds securely.
'Financial services' is comprehensive by definition, including lending, deposits, remittances, and risk mitigation.
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