What is the crucial message conveyed in the passage? (a) Establish more banks.
PASSAGE
The existence/establishment of formal financial institutions that offer safe, reliable and alternative financial instruments is fundamental in mobilising savings. To save, individuals need access to safe and reliable financial institutions, such as banks, and to appropriate financial instruments and reasonable financial incentives. Such access is not always available to all people in developing countries like India and more so, in rural areas. Savings help poor households manage volatility in cash flow, smoothen consumption, and build working capital. Poor households without access to a formal savings mechanism encourage immediate spending temptations.
What is the crucial message conveyed in the passage?
(a) Establish more banks.
(b) Increase the Gross Domestic Product (GDP) growth rate
(c) Increase the interest rate of bank deposits
(d) Promote financial inclusion
1 Answers
(d) The crucial message conveyed in the passage is to promote financial inclusion such that every citizen of the country has access to bank accounts and can save money so as to have better finances . Establishing more banks is a route to financial inclusion. Increasing the interest rate of bank deposits would promote savings. So (d) is correct.