Cause and Effect

Direction: In each of the following questions, two statements are given. There may be cause and effect relationship between them. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. 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. Q 5: Statements: I. The Reserve Bank of India has recently put restrictions on few small banks in the country. II. The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger in the public sector. A)Statement II is the cause and statement I is its effect B) Both the statements I and II are independent causes C)Both the statements I and II are effects of independent causes D)Both the statements I and II are effects of some common cause Answer : Option A Explanation: The inability of the small banks to compete with the bigger ones shall not ensure security and good service to the customers, which is an essential concomitant that has to be looked into by the Reserve Bank. I seems to be a remedial step for the same. Q 6: Statements: I. The private medical colleges have increased the tuition fees in the current year by 200 per cent over the last year’s fees to meet the expenses. II. The Government medical colleges have not increased their fees in spite of price escalation. A)Statement I is the cause and statement II is its effect B)Both the statements I and II are independent causes C)Statement II is the cause and statement I is its effect D)Both the statements I and II are effects of some common cause Answer : Option B Explanation: The increase in the fees of the private colleges and there being no increase in the same in Government colleges seem to be policy matters undertaken by the individual decisive boards at the two levels. Q 7: Statements: I. Majority of the citizens in the locality belongs to higher income group. II. The sales in the local super market are comparatively much higher than in other localities. A)Both the statements I and II are independent causes B)Both the statements I and II are effects of independent causes C)Statement II is the cause and statement I is its effect D)Statement I is the cause and statement II is its effect Answer : Option D Explanation: The comparatively higher sales in a particular locality are indicative of the high paying capacity of the residents of that locality. Q 8: Statements: I. Standard of living among the middle class society is constantly going up since part of few years. II. Indian Economy is observing remarkable growth. A)Both the statements I and II are effects of independent causes. B)Statement II is the cause and statement I is its effect. C)Statement I is the cause and statement II is its effect. D) Both the statements I and II are independent causes. Answer : Option C Explanation: Since the standard of living among the middle class society is constantly going up so ,Indian Economy is observing remarkable growth.

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