Question

How does financial inclusion contribute to poverty alleviation?

• A. By restricting access to formal credit
• B. By providing the poor with access to banking, credit, and insurance services
• C. By focusing only on large corporations
• D. By limiting the role of small farmers in the economy

Answer 1

Answer:

B. By providing the poor with access to banking, credit, and insurance services

Financial inclusion helps in poverty alleviation by giving the poor access to banking, credit, and insurance services, which enable them to save, invest, and protect themselves from financial shocks. This allows them to improve their economic prospects and escape the poverty cycle.