Multiple choice

Directions: In the following question, a statement is followed by two assumptions I and II. You are to consider the statement and assumptions that follow, and decide which of the assumption(s) is/are implicit in the statement.

Statement:

The Railway authorities have decided to increase the freight charges by 10 per cent in view of the possibility of incurring losses in the current financial year. Assumptions: I. The volume of freight during the remaining period may remain same. II. The amount so obtained may set off a part or total of the estimated deficit.

  1. I only

  2. II only

  3. both I and II

  4. neither I nor II

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

(2) The volume may decrease but overall returns will be more. The assumption is it will at least partly offset deficit.