Logical Reasoning - Statement and Assumption - Discussion

In 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.


Statement: The government has decided to pay compensation to the tune of Rs. 1 lakh to the family members of those who are killed in railway accidents.


  1. The government has enough funds to meet the expenses due to compensation.
  2. There may be reduction in incidents of railway accidents in near future.

[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

Answer: Option A


Clearly, the amount of compensation must have been decided keeping in mind the monetary position of the Government. So, I is implicit. However, nothing can be said about the frequency of railway accidents in future. So, II is not implicit.

Naveen Kumar.J said: (Mar 8, 2015)  
I think both statements are wrong,

Because the govt has decided to give money to the people who are died in accident as a responsibility of the country.

It is not like that government has this much funds to gave those people.

Can you please help me?

Kapildevkojja said: (Jun 6, 2015)  
To the tune of upto 1lakh. How does it indicate the capacity to pay?

And in what way does accident rate go down even if they compensated?

Supriyo said: (Sep 11, 2015)  
I think D would be the answer as both are wrong.

Kunal said: (Feb 10, 2016)  
Answer should be D, can't say that, The government has more fund to meet the expenses that why govt decided to give the compensation.

Ramoo Ram said: (Jun 14, 2016)  
I think both is a right answer. How we considered that govt have enough fund?

Rahulj said: (Jul 16, 2016)  
I think the answer should be D.

Kapil said: (Aug 6, 2016)  
The answer would be D. If the government pays for the compensation is does not mean that it has the budget for other expenses. There would not be budget "Already Prepared" for compensations - expecting for disasters to happen.

This is withdrawn immediately out of the budget but not from a prepared amount.

Harsh said: (Feb 20, 2017)  
I think that both does not satisfy the question.

Please help me with the explanation.

Sapna said: (Jul 4, 2018)  
Govt is compensating them as a sense of responsibility, it would be wrong to say that govt has enough fund to compensate. The answer should be D, as statement B also don't have any direct link to the statement.

Kesavan said: (Apr 5, 2019)  
I think the answer must be D. Because nowhere mentioned about government budget.

Manpreet said: (Jun 9, 2019)  
The answer must be D because no where it is stated the financial status of the government.

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