UPSC Prelims 2023 · CSAT
Question 62: Reading Comprehension
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 :
AnswerUPSC’s answer is (d).
The passage lists the obstacles to moving household savings into financial products: heavy bureaucracy, distrust of formal institutions, and too little information on which provider suits each family and how to switch. The solutions implied are the reverse of these: a flexible, less bureaucratic setting, solutions tailored to each household, and new, easier ways to give information and move between services. UPSC treats all three statements as implied.
- 1. Heavy bureaucracy is a named hurdle, so a more flexible environment is implied.
- 2. Lack of information on what suits each family implies tailored solutions.
- 3. Information gaps and difficult switching are taken to call for innovation in financial services.
How you could have got this
- If you were sure statement 1 is correct, (b) goes: it leaves 1 out.
What you needed to know: Heavy bureaucracy is a named hurdle, so a more flexible environment is implied.
- Then, if you were sure statement 2 is correct, (c) goes: it leaves 2 out.
What you needed to know: Lack of information on what suits each family implies tailored solutions.
- Then, if you were sure statement 3 is correct, (a) goes: it leaves 3 out.
What you needed to know: Information gaps and difficult switching are taken to call for innovation in financial services.
Only (d) is left. This one needs every statement.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong: UPSC also counts statement 3 as implied, since easier information and switching call for new services.
- (b) Wrong: statement 1 is also implied, as bureaucracy is named as a hurdle.
- (c) Wrong: statement 2 is also implied, as families lack information on what suits them.
- (d) Right: all three are taken as implied solutions.
Worth knowing: The passage lists hurdles rather than solutions and does not mention financial technology, so statement 3 is only loosely implied; UPSC's key still counts all three.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2023, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.