The Reserve Bank of India has recently put restrictions on few small banks in the country.
The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger in the public sector.
Options
A. Statement I is the cause and statement II is its effect
B. Statement II is the cause and statement I is its effect
C. Both the statements I and II are independent causes
D. Both the statements I and II are effects of independent causes
E. Both the statements I and II are effects of some common cause
Correct Answer
Statement II is the cause and statement I is its effect
Explanation
The inability of the small banks to compete with the bigger ones shall not ensure security and good service to the customers, which is an essential concomitant that has to be looked into by the Reserve Bank. I seems to be a remedial step for the same.
Cause and Effect problems
Search Results
1. Statements:
The government has recently fixed the fees for professional courses offered by the unaided institutions which are much lower than the fees charged last year.
The parents of the aspiring students launched a severe agitation last year protesting against the high fees charged by the unaided institutions.
Options
A. Statement I is the cause and statement II is its effect
B. Statement II is the cause and statement I is its effect
C. Both the statements I and II are independent causes
D. Both the statements I and II are effects of independent causes
E. Both the statements I and II are effects of some common cause
Correct Answer: Both the statements I and II are effects of independent causes
Explanation:
The prices of petrol and diesel being stagnant in the domestic market and the increase in the same in the international market must be backed by independent causes.
3. Statements: Until our country achieves economic equality, political freedom and democracy would be meaningless.
Conclusions:
Political freedom and democracy go hand in hand.
Economic equality leads to real political freedom and democracy.
Nothing about the relation between political freedom and democracy is mentioned in the statement. So, I does not follow. But II directly follows from the given statement.
4. Statements: Fashion is a form of ugliness so intolerable that we have to alter it every six months.
Conclusions:
Fashion designers do not understand the public mind very well.
The public by and large is highly susceptible to novelty.
The statement asserts that people cannot stand any particular trend for long and seek change quite often. So, only II follows.
5. Statements: He stressed the need to stop the present examination system and its replacement by other methods which would measure the real merit of the students.
Conclusions:
Examinations should be abolished.
The present examination system does not measure the real merit of the students.
Correct Answer: Both the statements I and II are effects of independent causes
Explanation:
Closing the schools for a week and the parents withdrawing their wards from the local schools are independent issues, which must have been triggered by different individual causes.
7. Statements:
India has surpassed the value of tea exports this year over all the earlier years due to an increase in demand for quality tea in the European market.
There is an increase in demand of coffee in the domestic market during the last two years.
Options
A. Statement I is the cause and statement II is its effect
B. Statement II is the cause and statement I is its effect
C. Both the statements I and II are independent causes
D. Both the statements I and II are effects of independent causes
E. Both the statements I and II are effects of some common cause
Correct Answer: Both the statements I and II are effects of some common cause
Explanation:
Both the statements are clearly backed by a common cause, which is clearly an increase in the number of thefts in the locality.
10. Statements:
Majority of the students in the college expressed their opinion against the college authority's decision to break away from the university and become autonomous.
The university authorities have expressed their inability to provide grants to its constituent colleges.
Options
A. Statement I is the cause and statement II is its effect
B. Statement II is the cause and statement I is its effect
C. Both the statements I and II are independent causes
D. Both the statements I and II are effects of independent causes
E. Both the statements I and II are effects of some common cause