Verbal Reasoning - Cause and Effect - Discussion
Discussion Forum : Cause and Effect - Cause and Effect (Q.No. 24)
Directions to Solve
Below in each of the questions are given two statements I and II. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements.
Mark answer
- (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.
- (E) If both the statements I and II are effects of some common cause.
24.
Statements:
- The government has decided to give tax benefits for small savings for investments and benefit accruals. However, all withdrawals of such savings are to be taxed.
- People have been investing more in small savings than in equity market to avail maximum tax benefits.
Answer: Option
Explanation:
Both the statements I and II are independent causes.
Discussion:
20 comments Page 1 of 2.
Sundar said:
1 decade ago
@All
The given answer is correction (Option C). This is a critical question, need deep thinking.
Because, all withdrawals of such savings are to be taxed. So, people will NOT be interested in investing "small savings for investments and benefit accruals" in order to get tax benefit (because here no option to get tax benefit finally).
But, here the statement II states that people are investing in small savings in order to get tax benefit.
So II definitely independent from the I.
Suppose, if the II is like "People are not interested in small savings...", then it is Option A.
Hope my tips may help you a bit. Have a nice day!
The given answer is correction (Option C). This is a critical question, need deep thinking.
Because, all withdrawals of such savings are to be taxed. So, people will NOT be interested in investing "small savings for investments and benefit accruals" in order to get tax benefit (because here no option to get tax benefit finally).
But, here the statement II states that people are investing in small savings in order to get tax benefit.
So II definitely independent from the I.
Suppose, if the II is like "People are not interested in small savings...", then it is Option A.
Hope my tips may help you a bit. Have a nice day!
(6)
Anne said:
1 decade ago
Clearly if govt offers tax incentive to savers, i.e. a lower rate of tax on income invested/saved, then more people would save their income - this is called superannuation. Lower rate of tax outweighing possible interest earned in alternative investments.
Answer A.
Answer A.
(1)
Vaneet Kumar said:
6 years ago
No, Answer Could Not Be 'C' Because There Is No Statement Which Has No Cause
Like,
The People Are Involved In The Small Savings There May Be Some Reason Behind The Same Too,
So Be Can't Call It Independent Cause
According to me answer option is : 'A'.
Like,
The People Are Involved In The Small Savings There May Be Some Reason Behind The Same Too,
So Be Can't Call It Independent Cause
According to me answer option is : 'A'.
Roy said:
1 decade ago
Mee tooo. The ans shud be A because it folows that after the govt activity the common man will invest in smal capital market A is the ans please guys suport me and let me know the ryt ans I am gving cet after 2 days please I beg you all.
Yog said:
1 decade ago
How to differentiate between Cause and effect?
Every logical statement has some reason behind it making it an "effect" ultimately. So in above example can't both the statemnts be effcets of independent cause?
Every logical statement has some reason behind it making it an "effect" ultimately. So in above example can't both the statemnts be effcets of independent cause?
Mahima said:
9 years ago
The correct answer must be A, taxes are on withdrawal and the same things go for equity as well but in the case of small savings, additional tax benefits are provided.
Shamsa said:
1 decade ago
Can someone guide me how to solve these logical answer, I mean any tips as want to apply for masterz exam asap.
Hellopeople said:
1 decade ago
I think the correct option should be A and not C. Any explanations on why it is not A?.
Sadhana Ravuri said:
6 years ago
Can anyone, kindly provide more clarity as to why the answer should be Option C?
Derin said:
4 years ago
Answer shoud be D. Both are effects of two independent causes.
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