SSC Stenographer 2025 PYQ — Question 112

SSC Stenographer - 06 Aug 2025 - Shift 3 • English • Q112

Read the following passage and answer the questions based on the passage:

Microfinance institutions (MFIs) have become crucial agents for advancing financial inclusion in rural areas. Through extending small loans and savings accounts to people who don't have access to conventional banks, MFIs empower entrepreneurs -most often women - to initiate or scale up microenterprises. In most villages, these loans support poultry farming, handloom weaving, or tiny retailing outlets. MFIs go beyond credit by regularly offering financial education training, teaching borrowers to cope with cash flows and interest charges. Critics warn, however, that excessive interest rates and repayment pressure can result in over-indebtedness. To avoid such risks, some MFIs limit interest rates and spread repayment terms. Research indicates that when complemented by market linkages - such as guaranteed buyers for fruits and vegetables-microfinance can trigger sustainable economic growth and poverty reduction.

According to the author, sustainable impact occurs when microfinance is combined with: 

Show answer & explanation

Correct answer: B

Explanation

The passage explicitly states that research indicates microfinance can trigger "sustainable economic growth and poverty reduction" when it is complemented by market linkages, such as guaranteed buyers for produce.

Market linkages refer to the connections between producers (the borrowers) and the buyers or markets where they can sell their goods and services.