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:  The government has decided to disinvest larger chunk of its equity in select public sector undertakings for better fiscal management.

Assumptions: I. The amount generated out of the disinvestment process may substantially reduce the mounting fiscal deficits.

II. There will be enough demand in the market for the shares of these undertakings.


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 A

Explanation:

The fact given in I directly follows from the phrase'.,... for better fiscal management in the statement. So, I is implicit. However, the public response to the new policy cannot be ascertained. So, II is not implicit.