Cause and Effect

Directions to SolveIn each of the following questions, two statements numbered I and II are given. There may be cause and effect relationship between the two statements. These two statements may be the effect of the same cause or independent causes. These statements may be independent causes without having any relationship. Read both the statements in each question and mark your answer as
  • (A) If statement I is the cause and statement II is its effect;
  • (B) If statement II is the cause and statement I is its effect;
  • (C) If both the statements I and II are independent causes;
  • (D) If both the statements I and II are effects of independent causes; and
  • (E) If both the statements I and II are effects of some common cause.

Q1: Statements:
  1. The Reserve Bank of India has recently put restrictions on few small banks in the country.
  2. The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger in the public sector.

A Statement I is the cause and statement II is its effect

B Statement II is the cause and statement I is its effect

C Both the statements I and II are effects of some common cause

D Both the statements I and II are effects of independent causes

E Both the statements I and II are independent causes

ANS:B - Statement II is the cause and statement I is its effect

Explanation: The inability of the small banks to compete with the bigger ones shall not ensure security and good service to the customers, which is an essential concomitant that has to be looked into by the Reserve Bank. I seems to be a remedial step for the same.



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