Logical Reasoning - Course of Action - Discussion

Discussion Forum : Course of Action - Section 1 (Q.No. 12)
Directions to Solve

In each question below is given a statement followed by two courses of action numbered I and II. You have to assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the suggested courses of action logically follow(s) for pursuing.

Give answer

  • (A) If only I follows
  • (B) If only II follows
  • (C) If either I or II follows
  • (D) If neither I nor II follows
  • (E) If both I and II follow.


Statement: The Asian Development Bank has approved a $285 million loan to finance a project to construct coal ports by Paradip and Madras Port Trusts.

Courses of Action:

  1. India should use financial assistance from other international financial organisations to develop such ports in other places.
  2. India should not seek such financial assistance from the international financial agencies.

Only I follows
Only II follows
Either I or II follows
Neither I nor II follows
Both I and II follow
Answer: Option
Clearly, such projects shall be an asset and a source of income to the country later on. So, course I shall follow.
6 comments Page 1 of 1.

Lakshay said:   4 years ago

Remember the following tips for this type of reasoning question.

1. The statement is always correct.

2. Only use a practical solution and practical solutions must be relevant to the statement or minimize the problem.

3. Do not select answer based on morality or ethics, do not assume anything.

Option I say the country should take a loan from ADB to develop coal port. The statement does not talk about the financial status of the country. So, we will consider the country is strong enough to take the loan and the coal port is an asset to the country and will help in developing the infrastructure of the country and profit from these port will help the country repay the loan (anything when help in the development of a nation Follows).

Option (ii) is just opposite of option I. It is assuming the financial status and morally right (refer golden tips) and option ii is against the development of the country and anything that is against the benefit of the country does not follow.

Vaishnavi said:   6 years ago
How about raising equity capital with a mix of loan taken in the capital structure?

Instead of taking entire amount as loan. Even the wealthy private companies of the country can take up this project. The answer is subject to multiple forces, I think.

Ajay said:   7 years ago
Asking Financial assistance sound negative, how could we consider the first statement?

Whether we are in debt trap or not?

Yogi said:   7 years ago
But there is nothing about previous sanctioned so we can't say we are in debt trap @Deepanshu.

Kaushal said:   7 years ago
I also agree with @Deepanshu.

Deepanshu said:   1 decade ago
But continuous approval of loan can make country a debt trap. So according to me either 1 or 2 is correct.

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