Multiple choice

Directions: In the question below are given a statement followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.

Statement: The govt. has recently advised all the public sector banks to reduce rate of interest on home loans up to Rs. 25 lakhs. Assumptions: I. The public sector banks may reduce the interest on all home loans up to Rs.25 lakhs. II. People may take undue advantage of the govt.'s decision.

  1. if only Assumption I is implicit.

  2. if only Assumption II is implicit.

  3. if either Assumption I or Assumption II is implicit.

  4. if neither Assumption I nor Assumption II is implicit.

  5. if both Assumptions I and II are implicit.
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A Correct answer
Explanation

Assumption I is implicit because the government's advice to reduce rates is based on the expectation that banks will comply - there's no point in advising if you don't anticipate action. Assumption II is NOT implicit because the statement only mentions the rate reduction advice; there's no mention or implication of concern about potential misuse or undue advantage by borrowers.

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