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Doctors Medicines MCQs Q&A

After GST and demonetisation, rising interest rates are set to hurt SMEs. Interest rates for loans against property (LAP) extended to small and medium sized enterprises (SMEs) are set to rise in the coming months of 2018 ‘ Rising interest rates, in addition to the muted operating environment for small businesses in India, will lead to an increase in delinquencies on LAP extended to SMEs’. The introduction of the goods and services tax (GST) in July 2017 and the government's demonetization policy have placed stress on the SME sector, which rising interest rates will exacerbate. Which of the following can be logically inferred from the statement above?

After GST and demonetisation, rising interest rates are set to hurt SMEs. Interest rates for loans against property (LAP) extended to small and medium sized enterprises (SMEs) are set to rise in the coming months of 2018 ‘ Rising interest rates, in addition to the muted operating environment for small businesses in India, will lead to an increase in delinquencies on LAP extended to SMEs’. The introduction of the goods and services tax (GST) in July 2017 and the government's demonetization policy have placed stress on the SME sector, which rising interest rates will exacerbate. Which of the following can be logically inferred from the statement above? Correct Answer In addition to rising delinquencies over the last few years would force lenders to be more cautious while underwriting loans. This would limit refinancing options, adversely affecting existing borrowers.

The correct answer is option 1, i.e. In addition to rising delinquencies over the last few years would force lenders to be more cautious while underwriting loans. This would limit refinancing options, adversely affecting existing borrowers.

Option 1 is the most appropriate inference that that be made based on the information provided. It captures all the important points like ‘rising delinquencies’, ‘effect of limit on the refinancing options thereby, affecting the customers’ are evident both from the given statement and the option choice.

Rest of the arguments can be rejected. Option (2) is very unpredictable and it cannot be said with surety about the loss limitation. Both options (3) and (4) can also be rejected as no idea of ABS (asset backed securities) is evident from the information provided in the given statement.

Thus, the most appropriate answer is option 1.

Related Questions

Goods and Services Tax (GST) was introduced as a part of indirect tax reforms in India. Which of the following are the salient features of the GST? 1. GST is applicable on the manufacture of goods or on sale of goods or on the provision of services. 2. GST is applicable to the supply of goods or services. 3. GST is based on the principle of destination-based consumption taxation. 4. GST is levied at rates decided by GST Council. Select the correct answer using the code given below:
Goods and Services Tax (GST) is an indirect tax introduced in India in 2017 that is imposed on the supply of goods and services, and it subsumes all indirect taxes except few. It is a destination-based tax imposed on goods and services used, and it is not imposed at the point of origin from where goods come. GST also has a few components specific to state governments, central government and Union Territories (UTs). Which one of the following statements can be inferred from the given passage?
The following sentences form a paragraph. They are numbered a P, Q, R and S. These four parts are not given in their proper order. Read the sentences and choose the alternative that arranges them in a correct order. P. Also, the customers will have funds to spend because of lower tax rates.  Q. The Goods and Services Tax (GST) is an indirect tax which entails that the tax is approved till the last stage where it is the purchaser of the goods and services who bears the tax. R. It will substitute most other indirect taxes and synchronize the differential tax rates on mass-produced goods and services. S. The government of India claims that GST will enhance Indian GDP by 2%.
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The sum of the IQ score of Quant team having 4 SMEs and Average IQ score of Gate team having 3 SMEs were 600 and 170 respectively. Recently, one SME of the Quant team switched to the Gate team and two new SME join the Quant team due to which the average IQ score of Quant team increased by 40% and average IQ score of both the teams becomes equal. Find the IQ score of the SME who switched to the Gate team.