A statement is given, followed by two assumptions numbered I and II. Decide which of the assumptions is/are implicit in the statement.
Statement: The government has advised all public sector banks to reduce the rate of interest on home loans of up to Rs 25 lakh.
Assumptions:
I. The public sector banks may reduce the interest on all home loans of up to Rs 25 lakh.
II. People may take undue advantage of the government’s decision.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Only assumption I is implicit
An assumption is implicit when the statement takes it for granted: the statement would not make sense without it.
I. The public sector banks may reduce the interest on all home loans of up to Rs 25 lakh. Implicit. The government gives such advice only because it expects the banks to act on it; advice that nobody is expected to follow would be pointless.
II. People may take undue advantage of the government’s decision. Not implicit. The statement says nothing about misuse of cheaper loans, and the advice does not depend on any such expectation.