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Question No. 320Interactive Test Mode
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Q320. With reference to ‘Water Credit’, consider the following statements: 1. It puts microfinance tools to work in the water and sanitation sector. 2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank. 3. It aims to enable poor people to meet their water needs without depending on subsidies. Which of the statements given above are correct?

With reference to ‘Water Credit’, consider the following statements:

  1. It puts microfinance tools to work in the water and sanitation sector.
  2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank.
  3. It aims to enable poor people to meet their water needs without depending on subsidies. Which of the statements given above are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

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

Official UPSC Answer KeyUPSC Prelims 2021 • Indian Economy

Correct Answer: Option (C) — 1 and 3 only

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is correct: WaterCredit connects microfinance institutions to communities in need, deploying micro-loans to fund household-level clean water connections and toilet installations.
  • Statement 2 is incorrect: WaterCredit is an initiative created and driven by Water.org (a non-profit founded by Gary White and Matt Damon), not an initiative launched under the aegis of WHO or the World Bank.
  • Statement 3 is correct: It empowers low-income households to access small, repayable loans for water and sanitation infrastructure, achieving sustainability without relying entirely on state subsidies.
Elimination Heuristic & Exam Approach

Be wary of international agency attribution traps. UPSC frequently pairs specialized non-profit initiatives with major multilateral bodies (like WHO or the World Bank) to create false statements.

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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2021 (Q320)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (C) — 1 and 3 only

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Frequently Asked Questions — UPSC Prelims 2021 Q320

What is the official answer for UPSC Prelims 2021 GS Paper I Question 320 (Indian Economy)?

The official UPSC answer key for this 2021 Indian Economy (Indian Economic Planning & Growth) question is Option (C): "1 and 3 only". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2021 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth 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 Indian Economic Planning & Growth UPSC Prelims question using option elimination?

Be wary of international agency attribution traps. UPSC frequently pairs specialized nonprofit initiatives with major multilateral bodies (like WHO or the World Bank) to create false statements.

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