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Statement: Governor of Reaserve Bank of India has slashed the cash reserve ration (CRR) by a massive 200 basis points form 7.50 per cent to 5.50 per cent. Conclusions : I. This measure will Kickstart the sluggish economy. II. The lendable resources of the banking sector will increase to some extent.

if only conclusion I follows
if only conclusion II follows
if either I or II follows
if neither I nor II follows, and

Correct Answer: if only conclusion II follows

Explanation:

I is an assumption. Second is the direct consequence of the given statement.

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