Logical Reasoning - Statement and Assumption - Discussion

In each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.

17. 

Statement: The Reserve Bank of India has directed the banks to refuse fresh loans to major defaulters.

Assumptions:

  1. The banks may still give loans to the defaulters.
  2. The defaulters may repay the earlier loan to get fresh loan.
  3. The banks may recover the bad loans through such harsh measures.

[A]. None is implicit
[B]. Only I and II are implicit
[C]. All are implicit
[D]. Only II and III are implicit
[E]. None of these

Answer: Option C

Explanation:

Clearly, loans to only major defaulters is being refused. So, the banks may still give loans to some defaulters. Thus, I is implicit. Also, the RBI's decision is a measure to recover the previous loans, since one would have to clear the old debts so as to get a fresh loan. So, both II and III are also implicit.

Shraddha said: (Oct 19, 2016)  
Please help me out as I think that 2nd option is wrong because it is not mentioned that defaulters can get loans by paying their earlier debts.

Jack said: (Dec 12, 2018)  
Once they repay the loan, they are no more defaulters.

Gajender Yadav said: (May 16, 2019)  
How come option III implicit in this case because the bank may recover through harsh measures. Its only assumption that bank will recover but cannot be implicit to the question's statement.

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