Multiple choice

Directions: In the following questio, one statement or advertisement is followed by two or three assumptions. On the basis of the statement choose which is/are implicit.

Statement: Saroj made an application to the bank for a loan of Rs. 1,80,000 by mortgaging his house to the bank and promised to repay it within five years. Assumptions: I. The bank has a practice of granting loans for Rs. 1,00,000/- and above. II. The bank accepts house as collateral security against such loans.
III. The bank may grant loan to Saroj.

  1. All are implicit.

  2. None is implicit.

  3. Only I and II are implicit.

  4. Only II and III are implicit.

  5. None of these
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A Correct answer
Explanation

All three assumptions are implicit. I is implicit because Saroj is applying for Rs. 1.8L, suggesting the bank handles such amounts. II is implicit as he's mortgaging his house, showing the bank accepts house collateral. III is implicit because he's applying at all - he assumes there's a possibility of approval. These assumptions underpin the entire loan application.

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