In each question below is given a statement followed by three assumptions…
202420242024
In each question below is given a statement followed by three assumptions numbered I, II and III. You have to consider the statement and the following assumptions, decide which of the assumptions is implicit in the statement and choose your answer accordingly.
Statement: The Reserve Bank of India has directed the banks to refuse fresh loans to major defaulters.
Assumptions:
i. The banks may still give loans to the defaulters.
ii. The defaulters may repay the earlier loan to get fresh loan.
iii. The banks may recover the bad loans through such harsh measures.
- A.
None is implicit
- B.
Only I and II are implicit
- C.
All are implicit
- D.
Only II and III are implicit
Attempted by 2 students.
Show answer & explanation
Correct answer: C
Concept: In a statement-and-assumption question, an assumption is something the speaker takes for granted without stating it outright — a premise that must be true for the statement's action or directive to make sense. A valid assumption has to follow directly from the statement's own wording and purpose; it cannot be an unrelated possibility.
Application: The statement is an RBI directive — banks must refuse fresh loans specifically to "major" defaulters. Check each assumption against this wording.
The directive singles out only "major" defaulters. This choice of wording takes for granted that defaulters who are not major can still be considered for fresh loans — otherwise the RBI would simply have said "defaulters," not "major defaulters." So this assumption is implicit.
For a directive that ties future lending to a defaulter's status to have any real effect, it must be taking for granted that clearing an existing loan is one way a defaulter can change that status and become eligible for fresh credit again. So this assumption is implicit.
The RBI would not bother restricting credit to defaulters unless it also took for granted that such a squeeze creates pressure to clear the outstanding dues — recovery of bad loans is the underlying rationale for singling out defaulters at all. So this assumption is implicit.
Cross-check: None of the three readings above brings in anything outside the statement's own wording and evident purpose — each is a precondition the directive silently relies on, not a fact stated outright and not an unrelated guess.
Result: All three assumptions follow from the statement, so "All are implicit" is the correct choice.