Multiple choice

Directions: A statement is given 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 to decide which of the assumptions is/are implicit in the statement.

Statement: The regulatory authority has set up a review committee to find out the reasons for unstable stock prices. Assumptions: I. The investors may regain confidence in stock market by this decision. II. The review committee has the expertise to find out the causes for volatility in the stock market.

  1. Only assumption I is implicit.

  2. Only assumption II is implicit.

  3. Either assumption I or II is implicit.

  4. Neither assumption I nor II is implicit.

  5. Both the assumptions I and II are implicit.

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A Correct answer
Explanation

I is implicit. The very purpose seems to be to restore the market confidence. But we can't derive from the statement whether the review committee is administrative or technical. If it is administrative, it will need to be assisted by people in the thick of things. So, II need not be true.

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