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 levy 2 per cent on the tax amount payable for funding the drought relief programme

Assumptions: I. The Government does not have sufficient money to fund drought relief programmes.

II. The amount collected by way of surcharge may be adequate to fund these drought relief programmes.


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 E

Explanation:

Since a surcharge has been levied to fund drought relief programmes, it follows that the Government does not have sufficient money for the same. So, I is implicit. Besides, the percentage of surcharge must have been decided after studying the expected inflow in relation to amount of funds required. So, II is also implicit.