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Course of Action - Verbal and Reasoning

Directions to SolveIn each question below is given a statement followed by three courses of action numbered I, II and III. You have to assume everything in the statement to be true, then decide which of the three given suggested courses of action logically follows for pursuing.
Q1:

Statement: Many private sector banks have reduced interest rate on housing loans in comparison to public sector banks. Courses of Action:
  1. The case should be raised before the regulatory authority for investigation by the public sector banks as they cannot follow such reduction.
  2. Public sector banks must adopt such policy to remain in competition.
  3. The public sector banks should advertise their special feature repeatedly so that they do not lose their future customers.

A All follow

B Only I and II follow

C Only I and III follow

D Only either II or III follows

E None of these

ANS:D - Only either II or III follows

Explanation: Clearly, the private sector banks have done so to attract more and more customers of public sector banks. Thus, public sector banks should either reduce the rate of interest to match with that of private sector banks or highlight those features which make them stand apart from private sector banks. So, either II or III follows.