Correct Option (A)
Statements 1 and 2 are implied by the passage as solutions for the financialization of household savings.
- Statement 1: A flexible environment is needed to develop solutions. The passage identifies "onerous bureaucracy" and the difficulty in making "transition between them if necessary" as significant hurdles. A flexible environment would directly address these rigidities, allowing for adaptive approaches to overcome bureaucratic obstacles and facilitate smoother transitions between financial services.
- Statement 2: Households need customised solutions. The passage notes "a lack of basic information about which of the myriad services and providers is best for each family." This indicates that a generic approach is insufficient. Customised solutions would cater to the specific needs, understanding levels, and preferences of individual households, thereby making financial products more accessible and appealing.
Incorrect Options:
- Statement 3: Innovations in financial technology are required. The passage does not explicitly suggest that innovation in financial technology is a primary solution. While fintech can be a facilitating tool, the passage's focus is on addressing behavioral barriers (skepticism, traditional processes) and structural issues (bureaucracy, information asymmetry) through adaptability and personalized approaches, rather than technological innovation itself. Therefore, this statement is not directly implied as a solution by the provided text.