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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 regulatory authority has set up a review committee to find out the reasons for unstable stock prices. Assumptions:
  1. The investors may regain confidence in stock market by this decision.
  2. The review committee has the expertise to find out the causes for volatility in the stock market.

A Only assumption I is implicit

B Only assumption II is implicit

C Either I or II is implicit

D Neither I nor II is implicit

E Both I and II are implicit

ANS:E - Both I and II are implicit

Explanation: Clearly, I mentions the aim for which the step talked about in the statement, has been undertaken while II mentions the essential requirement for it. So, both I and II are implicit.



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