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Statements: The local co-operative credit society has decided to stop giving loans to farmers with immediate effect. A large number of credit society members have withdrawn major part of their deposits from the credit society.

Statement I is the cause and statement II is its effect
Statement II is the cause and statement I is its effect
Both the statements I and II are independent causes
Both the statements I and II are effects of independent causes
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:

Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.

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