UPSC Prelims 2015 · CSAT

Question 46: Reading Comprehension

Passage beginning “The existence/establishment of formal financial institutions…” — Passage – 5 · as printed by UPSC

What is the crucial message conveyed in the passage ?

aEstablish more banks

bIncrease the Gross Domestic Product (GDP) growth rate

cIncrease the interest rate of bank deposits

dPromote financial inclusion

AnswerUPSC’s answer is (d).

The passage argues that formal institutions offering safe, reliable savings instruments are fundamental for mobilising savings, that many people in developing countries, especially in rural areas, lack such access, and that this pushes poor households towards immediate spending. The central message is to widen access to formal financial services: financial inclusion. Opening more banks is one means, interest rates are mentioned only in passing as an incentive, and GDP growth is not discussed.

Why each option is right or wrong

(a) Wrong: more banks are one way to include people, but the passage speaks of access to institutions and instruments broadly.
(b) Wrong: GDP growth is not discussed.
(c) Wrong: incentives are mentioned in passing; interest rates are not the central message.
(d) Right: extending access to safe formal finance for the poor is the message.

Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2015, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.