Home » Verbal Reasoning » Statement and Assumption

Statement The target of a fiscal deficit of 5% of GDP could not be met because of major shortfall in revenue collection. Assumptions I . Shortfall in revenue collection leads to an increase in fiscal deficit. II. Shortfall in revenue collection leads to a decrease in fiscal deficit.

if only Assumption I is implicit
if only Assumption II is implicit
If either Assumption I or II is implicit
if neither Assumption I nor II is implicit

Correct Answer: if only Assumption I is implicit

Explanation:

Clearly, the statement is based on the assumption that shortfall in revenue collection leads to an increase in fiscal deficit. Hence, Assumption I is implicit.

← Previous Question Next Question→

More Questions from Statement and Assumption

Statement The impact of economic sanctions on economy, that is already so weak, could be devastating. Assumptions I. Economic sanctions impact only a week economy. II. The impact of economic sanctions varies from economy to economy.
Statement "Exercise is necessary to maintain good health", the advertisement. Assumptions I. Exercise is a pre-requisite for good health. II. Such advertisements have some effect on people.
Statement The railway authorities have decided to increase the freight charges by 10% in view of the possibility of incurring losses in the current financial year. Assumptions I. The volume of freight during the remaining period may remain same. II. The amount so obtained may set off a part or total of the estimated deficit.
Statement "Considering that his ministry contains many hawala-tainted ministers, the Prime Minister has a moral obligation to resign", a politician. Assumptions I. The politician is not close to the Prime Minister. II. The politician would like to inculcate moral principles in politics.
Statement "Those who are appearing for this examination for first time, should be helped in filling up the forms", an instruction to the invigilating staff. Assumptions I. The form is somewhat complicated. II. Candidates can appear more than once for this examination.
Statement Be humble even after gaining victory. Assumptions I. Many people are humble after gaining victory. II. Generally people are not humble.
Statement The income tax rules need to be amended so that there is more incentive for the people to declare their actual wealth. Assumptions I. The income tax rules are not proper. II. Some people do not declare their actual wealth.
Statement The General Administration Department has issued a circular to all the employees informing them that hence forth the employees can avail their lunch break at any of the half hour slots between 1 : 00 pm and 2 : 30 pm. Assumptions I. The employees may welcome the decision and avail lunch break at different time slots. II. There may not be any break in the work of the organization as the employees will have their lunch break at different time slots.
Statement The Government has decided against reduction of prices of petroleum products though there is a significant drop in the crude oil prices in the international market. Assumptions I. The prices of crude oil in the international market may again increase in the near feature. II. The present prices different of petroleum products will help the government to with stand any possible price rise in future.
Statement The Government has made an appeal to all the citizens to honestly pay income tax and file returns reflecting the true income level to help the Government to carry out development activities. Assumptions I. People may now star paying more taxes in response to the appeal. II. The total income tax collection may considerably increase in near future.

Discussion & Comments

No comments yet. Be the first to comment!

Join Discussion