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 customized solutions. 3. Innovations in financial technology are required. Select the correct answer using the code given below:

1. A. 1 and 2 only
2. B. 2 and 3 only
3. C. 1 and 3 only
4. D. 1, 2 and 3

Answer: A

Explanation

The passage discusses challenges in financializing household savings in India, listing ‘onerous bureaucracy,’ ‘scepticism of organized financial institutions,’ and ‘a lack of basic information about which of the myriad services and providers is best for each family’ as hurdles.
1. ‘A flexible environment is needed to develop solutions.’ The mention of ‘onerous bureaucracy’ implies a rigid, difficult environment. To overcome this, a flexible environment would be necessary. So, statement 1 is implied.
2. ‘Households need customized solutions.’ The phrase ‘a lack of basic information about which of the myriad services and providers is best for each family’ directly suggests that generic solutions are not sufficient and families need tailored advice or products. So, statement 2 is implied.
3. ‘Innovations in financial technology are required.’ While FinTech could potentially address some issues, the passage does not explicitly mention or imply that *innovations in financial technology* are a required solution. It focuses more on systemic issues (bureaucracy, trust) and information gaps, rather than technological advancement itself. So, statement 3 is not directly implied.
Therefore, only statements 1 and 2 are implied. This question tests the ability to infer solutions from identified problems within the text, a common CSAT skill.