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 implicit in the statement.

Statement: Bank 'A' has announced reduction of half percentage on the interest rate on retail lending with immediate effect. Assumptions: I. Other banks may also reduce the retail lending rates to be in competition. II. Bank 'A' may be able to attract more customers for availing retail loans.

  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.

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

Why did bank 'A' reduce the interest rate on retail lending? The step taken by the bank must be aimed at generating more revenue. Hence, II must be assumed I may or may not be an assumption. Hence, I is not implicit.

Keep practicing — related questions