Question

The high level of consumer debt in Kerala is often linked to which factor?

• A. High levels of government spending on social welfare programs
• B. A decline in agricultural productivity leading to reduced incomes
• C. Increased investment in infrastructure projects without proportional economic growth
• D. The reliance on remittances for conspicuous consumption

Answer 1

Answer:

D. The reliance on remittances for conspicuous consumption

• The easy access to credit, often backed by remittances and gold, has led to a high level of consumerism.

• While remittances bring prosperity, the culture of "living beyond one's means" can lead to financial fragility.