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 regulatory authority has set up a review committee to find out the reasons for unstable stock prices.


  1. The investors may regain confidence in stock market by this decision.
  2. The review committee has the expertise to find out the causes for volatility in the stock market.

[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 E


Clearly, I mentions the aim for which the step talked about in the statement, has been undertaken while II mentions the essential requirement for it. So, both I and II are implicit.

Harita said: (Nov 30, 2010)  
I dont think that the meeting can help in regaining confidence of The investors as the meeeting is a forum where they will only try to find out the cause. To get the confidence of Investors they have to find & implement solutions to the causes

Shachi Mittal said: (Jan 17, 2013)  
I don't think that I is correct in context to the statement as nothing is mentioned about the nature or thinking of the investors, nothing is mentioned about the aim for which the task is been performing, it could be performed for any other aim also.

Can anyone explain?

Richa said: (Jun 21, 2013)  
I also think same. Assumption 1 is not relevant to statement given as we can not say that even if reasons for non volatile share is found & action on same is taken inventor could be taken in confidence.

Hari Krishna said: (Oct 6, 2014)  
What would the answer to this question be if we change the word "may" to "will" in the 1st assumption?

Naman said: (Aug 20, 2015)  
The investors may regain confidence in stock market by this decision.

We can't say anything about investors as nothing is mentioned about them.

Nivi said: (Sep 8, 2015)  
They didn't mention anything about the investors. So you may never know how they are going to act and mentioning them is not relevant.

The correct option should be Only II.

Ashif said: (Feb 27, 2017)  
There 's nothing mentioned about the investors in the statement so option B is implicit.

Chitra said: (Apr 8, 2017)  
According to me, only assumption 2 is implicit. Assumption 1 is not implicit because nothing is mentioned about investors in the statement.

Himanshi Raikwar said: (Apr 16, 2017)  
The correct answer is B.

Xyz said: (Jul 19, 2017)  
What guarantees that the committee is competent enough even though the government thinks so?

And the use of the word may suggest option 1 is correct.

Abhishek Pathak said: (Aug 22, 2017)  
The is nowhere mention about of investors and in option 1 the word use 'may', would this word has any influence over the answer?

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