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Statement: Bank should always check financial status before lending money to a client. Assumption: I. Checking before lending would give a true picture of the client financial status II. Client sometimes may not present the correct picture of their ability to repay loan amount to the bank.

Correct Answer: if only assumption I is implicit.

Explanation:

I is implicit in the norm prescribed in the sentence. This is why checking is being advised. Again, what would the banks check? Obviously, what the clients reveal. Banks would assume the revelation to be true. Hence I is not implicit. However , II is vague. If cross-checking is what the speaker has in mind II would become implicit.


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