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 the 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. Both assumptions I and II are implicit.

  5. Neither assumption I nor II is implicit.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Why a review committee is established to find out the reasons for unstable stock prices? Concerned authority must have assumed I. Hence, I is implicit. One does not entrust a work to another unless the former assumes that the latter has the efficiency to do that work. Hence, II is also implicit.

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