Question : Statement 1: Lack of access to credit and financial services hinders poverty alleviation efforts.

Statement 2: Access to credit enables individuals to invest, generate income, and improve their standard of living.

Option 1: Statement 1 is true, and Statement 2 is true.

Option 2: Statement 1 is true, but Statement 2 is false.

Option 3: Statement 1 is false, but Statement 2 is true.

Option 4: Statement 1 is false, and Statement 2 is false.


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Statement 1 is true, and Statement 2 is true.


Solution : The correct answer is (a) Statement 1 is true, and Statement 2 is true.

Statement 1 is true. Access to credit and financial services is crucial for individuals and communities to invest in income-generating activities, start businesses, and improve their standard of living. Without access to credit, many individuals, especially those in poverty, face difficulties in obtaining capital to pursue economic opportunities and overcome financial constraints.

Statement 2 is also true. Credit allows individuals to access funds that can be used for various purposes, such as starting or expanding a business, investing in education or skills development, or addressing emergencies. By utilizing credit effectively, individuals can generate income, build assets, and improve their overall economic situation.

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