## Statement and Assumption

Directions to SolveIn each question below is given a statement followed by two assumptions numbered I and II. You have to consider the statement and the following assumptions and decide which of the assumptions is implicit in the statement.Give answer
• (A) If only assumption I is implicit
• (B) If only assumption II is implicit
• (C) If either I or II is implicit
• (D) If neither I nor II is implicit
• (E) If both I and II are implicit.

# Q1:Statement: The Government has decided to levy 2 percent on the tax amount payable for funding drought relief programmes. Assumptions: The Government does not have sufficient money to fund drought relief programmes. The amount collected by way of surcharge may be adequate to fund these drought relief programmes.

A Neither I nor II is implicit
B Only assumption II is implicit
C Both I and II are implicit
D Only assumption I is implicit
E Either I or II is implicit

ANS:E - Both I and II are implicit

Explanation: Since a surcharge has been levied to fund drought relief programmes, it follows that the Government does not have sufficient money for the same. So, I is implicit. Besides, the percentage of surcharge must have been decided after studying the expected inflow in relation to amount of funds required. So, II is also implicit.

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