UPSC Prelims 2026 · GS Paper I
Question 97: Economy and Social Development
Which of the following statements about Crowdfunding is/are correct ?
- 1.Crowdfunding is solicitation of funds (small amount) from multiple investors through a web-based platform or social networking site for a specific project.
- 2.Small and Medium Enterprises (SMEs) are able to raise funds at lower cost of capital without undergoing rigorous procedures.
Select the answer using the code given below :
AnswerUPSC’s answer is (c).
Crowdfunding raises small sums from many contributors through a web-based platform or social networking site for a specific project. For SMEs it can offer funds at a lower cost of capital and with lighter procedures than bank loans or public issues. UPSC accepts both statements.
- 1. Small sums are raised from many people through a web platform for a specific project.
- 2. SMEs can raise funds at lower cost and with lighter procedures.
How you could have got this
- If you were sure statement 1 is correct, (b) and (d) go: each of them leaves 1 out.
What you needed to know: Small sums are raised from many people through a web platform for a specific project.
- Then, if you were sure statement 2 is correct, (a) goes: it leaves 2 out.
What you needed to know: SMEs can raise funds at lower cost and with lighter procedures.
Only (c) is left. This one needs every statement.
This follows UPSC’s provisional key; the final key could change it.
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) Incomplete: statement 2 is also accepted.
- (b) Incomplete: statement 1, the definition, is also correct.
- (c) Right: both statements are correct.
- (d) Wrong: both statements are accepted.
Only the provisional key (27 May 2026) was found; the final key replaces it when found.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2026, General Studies Paper I, Series A. The paper on upsc.gov.in.