Verbal Reasoning - Cause and Effect - Discussion

Discussion :: Cause and Effect - Cause and Effect (Q.No.27)

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.

27. 

Statements:

  1. The Reserve Bank of India has recently put restrictions on few small banks in the country.
  2. The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger banks in the public sector.

[A]. Statement I is the cause and statement II is its effect.
[B]. Statement II is the cause and statement I is its effect.
[C]. Both the statements I and II are independent causes.
[D]. Both the statements I and II are effects of independent causes.
[E]. Both the statements I and II are effects of some common cause.

Answer: Option B

Explanation:

As, the small banks in the private and co-operation sector in India are not in a position to withstand the competitions of the bigger banks in the public sector, therefore, the Reserve Bank of India has recently put restrictions on few small banks in the country.

Haris said: (Jan 29, 2011)  
Not sure why woudl RBI put more restrictions on Small banks, knowinh they are already not able to withstand competition. In such situations, RBI shold lift few restrictions to help Small banks.

So, I think both are effects of indpendent Causes, like as small banks has less money to play with,s o cant withstand with large banks.

Other could, few small banks used unlawful ways in such competition, forcing RBI to put more restrictions on them.

Ur thoughts please.

Raghav said: (Jun 3, 2011)  
Yes I do agree.

Rahul said: (Jul 10, 2016)  
Yes, I also agree.

Nitin said: (Nov 17, 2017)  
Why do I feel less confident after looking at the answers some are totally unreasonable?

Karan said: (May 16, 2019)  
It is quite plausible that the restrictions put on the smaller banks are the reasons why the smaller banks are not in a state of being competitive with the larger banks. So the answer might be A as well.

K.Prabha Mahesh said: (May 27, 2020)  
The answer would be B if 1st statement is like RBI put restrictions on expansion of small banks.

Sajida said: (Jun 11, 2021)  
In the first statement, it is clearly given that restrictions on few small banks not all, so I think no connection between the two statements.

Kavya Nandagopal said: (Jun 12, 2021)  
The explanation is correct, thanks @Karan.

Post your comments here:

Name *:

Email   : (optional)

» Your comments will be displayed only after manual approval.