Discussion Forum



1)

In the question below is given a statement followed by two assumptions numbered I and II. Consider the statement and decide which of the assumption is implicit.

Statement: Bank A has announced a 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 of retail loans.


A) If only assumption I is Implicit

B) If only assumption II is implicit

C) If either I or II is implicit

D) If neither I nor II is implicit

E) If both I and II are implicit

Answer:

Option B

Explanation:

Reducing the interest rates on loans is surely a step to draw in more customers. But the implications of such a policy on other banks cannot be ascertained, as interest rate is not the only criterion to lure customers. So, only II is implicit.