Logical Reasoning - Cause and Effect - Discussion
Discussion Forum : Cause and Effect - Cause and Effect (Q.No. 16)
Directions to Solve
In 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.
16.
Statements:
- The local co-operative credit society has decided to stop giving loans to farmers with immediate effect.
- A large number of credit society members have withdrawn major part of their deposits from the credit society.
Answer: Option
Explanation:
Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.
Discussion:
2 comments Page 1 of 1.
Sherin said:
7 years ago
Why can't it is option E I.e effect of a common cause?
1. Bank decided to stop giving loans will be due to the continuous downfall of a bank like PNB
2. And credit society members withdraw their money in fear of losing it, due to its downfall.
Both lead to the effect of a common cause.
1. Bank decided to stop giving loans will be due to the continuous downfall of a bank like PNB
2. And credit society members withdraw their money in fear of losing it, due to its downfall.
Both lead to the effect of a common cause.
Kasim said:
9 years ago
In statement two "a large number of credit society members" is given which means there could be some reason so many people have withdrawn deposits at the same time. So option (E) could also be the answer.
(2)
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