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Question No. 197Interactive Test Mode
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Q197. 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: 1. Credit facilities 2. Savings facilities 3. Insurance facilities 4. Fund Transfer facilities Select the correct answer using the codes given below the lists:

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:

  1. Credit facilities
  2. Savings facilities
  3. Insurance facilities
  4. Fund Transfer facilities Select the correct answer using the codes given below the lists:
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

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Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2011 • Indian Economy

Correct Answer: Option (D) — 1, 2, 3 and 4

Concept & Option Breakdown

Standard Reference Verified

Microfinance is not restricted merely to microcredit; it encompasses a complete suite of basic financial products for low-income households:

  1. Microcredit: Small collateral-free loans for consumption and income generation.
  2. Microsavings: Safe deposit options to encourage financial discipline.
  3. Microinsurance: Affordable life, health, and crop risk coverage.
  4. Remittance/Fund Transfers: Low-cost mechanisms enabling migrant workers and families to transfer funds securely.
Elimination Heuristic & Exam Approach

'Financial services' is comprehensive by definition, including lending, deposits, remittances, and risk mitigation.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2011 (Q197)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Banking & Financial System
Official Answer KeyOption (D) — (d) 1, 2, 3 and 4

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Frequently Asked Questions — UPSC Prelims 2011 Q197

What is the official answer for UPSC Prelims 2011 GS Paper I Question 197 (Indian Economy)?

The official UPSC answer key for this 2011 Indian Economy (Banking & Financial System) question is Option (D): "(d) 1, 2, 3 and 4". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2011 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Banking & Financial System". You can explore all repeated questions from Banking & Financial System in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Banking & Financial System UPSC Prelims question using option elimination?

'Financial services' is comprehensive by definition, including lending, deposits, remittances, and risk mitigation.

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