General Studies · Course of Action

Read the following information carefully and answer the question that follows. Statement: The number of small and medium-sized enterprises (SMEs) in City-V is decreasing. A key factor is the difficulty these businesses face in accessing affordable credit from banks due to stringent collateral requirements. This lack of financial support is hindering their ability to grow, innovate, and compete with larger corporations. Economic experts recommend that to foster the growth of SMEs, the government needs to implement policies that make it easier for them to secure funding. Assuming everything in the statement to be true, decide which of the following courses of action logically follow for pursuing. A. The government should introduce a scheme to provide collateral-free loans to promising SMEs with a good business plan. B. The government should advise all banks to stop lending to SMEs to prevent potential defaults. C. The government should partner with private financial institutions to create a specialized fund for investing in SMEs. D. The government should encourage SMEs to merge with larger corporations to survive.