Multiple choice

Which of the following is not true according to the situation?

Directions: Study the situation given below to answer the question.
Satish Vrati's New Year resolution for the past three years has been the same; to buy a new house in New Delhi at the earliest. With every hike in salary, he would scramble through newspapers to find out good properties and housing loans. Meanwhile, he received conflicting advice about the pros and cons of owning a flat. If one friend pointed out the risk involved in leasing out the property. Another would say his money was being locked up without good returns. Vrati became indecisive.

With the cut in Cash Reserve Ration (CRR) by the Reserve Bank of India (RBI), many banks decided to trim interest rates for housing loans. But Vrati still wondered whether real estate was a safe investment. With the entry of corporate sector, the real estate sector has become reliable�, says Rajendra Varshney, chartered accountant and real estate adviser. Today,� it can compete with any available investment option.�

  1. Satish Vrati is a well-to-do man.

  2. Leasing out a house is not an advisable proposition in every circumstance.

  3. Interest rates are linked to CRR.

  4. The attractive rates have now convinced Vrati to buy a flat.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The passage explicitly states 'But Vrati still wondered whether real estate was a safe investment' - this indicates he has NOT been convinced by the attractive rates to buy a flat. His indecision persists despite lower interest rates. Options A, B, and C are all supported by the passage: Vrati is well-to-do (salary hikes, considering property investment), there are valid concerns about leasing (mentioned by friends), and the passage directly links interest rates to CRR cuts by RBI.

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