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I The Reserve Bank of india reduced the interest rates. II Housing loans witnessed an increase.

If I is the immediate cause and II is its effect.
If II is the immediate cause and I is its effect.
If I is the effect but II is not its direct/immediate cause.
If II is the effect but I is not its direct/immediate cause.

Correct Answer: If I is the immediate cause and II is its effect.

Explanation:

Because the interest rates were reduced, more people took housing loans.

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