Statement:
An advertisement by a public sector bank: we offer higher fixed deposit interest in comparison to other public sector banks.
Assumption:
I. The different public sector banks offer different deposit rates.
II. There is competition in the market to attract customers.
From the above two assumptions, decide which of the assumptions is implicit in the statement?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Both I and II are implicit
An assumption is something the speaker takes for granted without saying it; if it were false, the statement would make no sense.
I. The different public sector banks offer different deposit rates. Implicit. The bank claims to pay more than the others; that claim is possible only if the rates of public sector banks are not all the same.
II. There is competition in the market to attract customers. Implicit. A bank advertises its higher rate only because it expects customers to compare banks and to move to the better offer.