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The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: The domestic equity market has become supervolatile  and converted the psychology of every market participant into fear. Greed and fear continue to alternate in the market, like the two sides of a coin. To a seasoned player, there seems to be nothing new as such instances of panic-selling often occur time and again. Why? Arguments: I. Since demonetisation, herd mentality had jacked up financials, banks and NBFC stocks to great heights on the pretext of financial inclusion and formalisation of the economy. This caused the financials gain disproportionate share in Nifty50 at 35 per cent of the free float market capitalisation, which was unheard of in the past.  II. The domestic market seems to be deeply oversold and can rebound on any good news. The Nifty50 has taken long-term support at the three-year trend line, which makes a case for the correction to near its end. III. Investors, therefore, should not panic and sell off shares. Instead they should do the reverse and gather the courage to pump in more money into the market by picking quality stocks or investing in ETFs for more stable returns. 

The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: The domestic equity market has become supervolatile  and converted the psychology of every market participant into fear. Greed and fear continue to alternate in the market, like the two sides of a coin. To a seasoned player, there seems to be nothing new as such instances of panic-selling often occur time and again. Why? Arguments: I. Since demonetisation, herd mentality had jacked up financials, banks and NBFC stocks to great heights on the pretext of financial inclusion and formalisation of the economy. This caused the financials gain disproportionate share in Nifty50 at 35 per cent of the free float market capitalisation, which was unheard of in the past.  II. The domestic market seems to be deeply oversold and can rebound on any good news. The Nifty50 has taken long-term support at the three-year trend line, which makes a case for the correction to near its end. III. Investors, therefore, should not panic and sell off shares. Instead they should do the reverse and gather the courage to pump in more money into the market by picking quality stocks or investing in ETFs for more stable returns.  Correct Answer Only I is strong.

We first make sure to read the statement carefully and then see what immediate inferences can be drawn based on our first reading. The next step is to look at the arguments given in the options, analyze them and see if they seem relevant with respect to the information/data provided to us. Finally, it is very important to study the question closely.

Following the aforementioned steps we must analyze the given statement and the corresponding question closely.

The given statement is about the equity markets which are constantly changing because of greed and fear among the investors.

Argument (I) brings out the idea that such a change is not new, this has happened in the past also and thereby satisfies the fact that for someone who has experienced all this in the past this change won’t be something new.

Arguments (II) and (III) deal with the condition becoming stable in the future and the ways by which the condition can be improved. But these does not bring out the idea that these happenings have been occurred in the past also and for a seasoned player (an experienced player) this is not something new. Thus, both II and III can be rejected.

Thus, option 4 captures the correct arguments that support the statement in the best possible manner and is our answer choice. Hence, rest of the options can be rejected.

Related Questions

The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments and which is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: Automatic teller machines (ATMs) remain a mainstay of India’s financial inclusion drive and need the central bank’s support to stay relevant amid the government’s push for digital payments. Digital payments haven’t kept pace with the requirement for financial services in far-flung areas and a lack of ATMs there could prove disastrous for the economy.Which among the following arguments support the above statement in the best possible manner? Arguments: I. There is still strong demand for cash and if banks do not invest in the ATM infrastructure, especially in rural areas, people might opt to hoard cash instead. II. To maintain a balance between the two modes of payment, there is a need to open up regulatory sandboxes for ATMs to allow manufacturers to collaborate with financial-technology startups. III. Demonetisation pulled out over 85% of the cash in circulation, forcing people to embrace digital payments. Since then, cash in circulation has reverted to its pre-demonetisation days but digital payments have come to stay. 
In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: Indian Finance Minister Arun Jaitley said on Monday that the government is ready to ensure credit is available to non-banking financial companies (NBFCs), just a day after the market regulator and the central bank sought to calm skittish investors. Jaitley's assurances followed panic selling in the equity market on Friday that pushed the benchmark Nifty Index more than three percent lower in less than 30 minutes. It later recovered to end the day down 0.81 percent.  Courses of action: I. The sell-off was sparked by news that a large fund manager sold short-term bonds issued by Indian NBFC Dewan Housing Finance Corp at a sharp discount, raising fears of wider liquidity problem among NBFCs.  II. Indian equity markets have hit record highs this year despite sell-offs in domestic bonds and weakness in the rupee that has made it Asia's worst-performing currency this year.  III. A sell-off in equity markets, which have been one of the few bright spots in the economy, could further dent Modi's popularity among some of the small business and trading community, a core base of BJP supporters, who were already stung by two of his largest reform moves - demonetization and a nationwide Goods and Services Tax (GST). 
The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: India's burgeoning shadow finance sector is likely to face a shake-up after defaults at one major lender battered the nation's financial markets in the past week and reinforced worries about credit risk. Industry officials and experts say they expect Indian regulators to cancel the licences of as many as 1,500 smaller non-banking finance companies because they don't have adequate capital, and to also make it more difficult for new applicants to get approval. Which of the following argument(s) stated support(s) the given fact? Arguments: I. Better capitalised and more conservatively run finance firms are likely to swallow up an increasing number of smaller rivals. That could make it difficult for many small borrowers to get loans, especially in the countryside where two-thirds of India's 1.3 billion people live and put the brakes on a surge in private consumption with a knock-on effect on growth.  II. The shadow banking sector now comprises more than 11,400 firms with a combined balance-sheet worth 22.1 trillion rupees ($304 billion) and is less strictly regulated than banks. It has been attracting new investors, particularly as the nation's banks have had to slow their lending as they seek to work through $150 billion of stressed assets.  III. Nearly 11,000 of India's NBFCs are small and medium-sized businesses with an asset base of less than 5 billion rupees. But the top 400, many of which are backed by banks and finance companies, control about 90 percent of the assets under management.
The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments, is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: Over the past five decades, term deposits in banks have emerged as the primary instrument of financial savings for the average Indian after former premier Indira Gandhi embarked on a mission to nationalise the lenders - 14 in the first tranche - on a rainy afternoon in July 1969. Coming with an unsaid sovereign guarantee of sorts, fixed deposits (FDs) seemingly offered investors liquidity - and safety - as nationalisation sought, in part, to arrest the 40-odd bank failures a year.  Now, however, deposits must burnish their allure to retain leadership status in an increasingly crowded financial marketplace that offers choice. Why? Arguments: I. If FDs are giving 7.5% and the effective tax rate is 10%, one gets close to 5-5.2% return. Similarly, in the case of FMP, if the rate is 7.5%, effective taxation comes to 10%, one gets 6.75%. It is higher than the effective returns on bank deposits.  II. People are becoming aware of more asset classes that offer better returns, and the quest for such assets became more pronounced after interest rates fell substantially over the past four years.  III. Savers are looking at mutual funds and provident funds for the higher return. 
Read the passage carefully and select the best answer to each question out of the given four alternatives. One should consciously engage in activities that will nourish your soul. Just as we nourish the body, we need to nurture the soul to connect to the creative power ofthe universe and to manifest joy in our lives. Often, we forget to address the soul, lost as we are in a jungle of material and sensual pleasures. But the more youembrace what feeds your soul, the happier you become. So if you want to enjoy the abundance of life, engage in what enriches your soul. Nurturing the soul is allabout finding calm amidst chaos. There are a number of practices that empower people towards this end including silent contemplation, various forms of meditation,yoga and tai chi However, the rigor and discipline involved in the pursuit of such practices often seems to discourage people. Add to this, the temptations of thematerial world that leave little time and motivation for anyone to pursue the spiritual path. Poet Walt Whitman declared: “Whatever satisfies the soul is truth”. Thegood news is that simple, everyday activities can also nutrify the soul — like spending time in the midst of nature, dancing in the rain or just putting thoughts onpaper. Do whatever is calming and pleases you. Creative pursuits are particularly appealing as inside each one of us, there is an artist craving for release andawaiting an opportunity for expression. One of the ways to indulge the artist within is to get started with the practice of any one or more of the creative art formssuch as music, singing, dancing, acting, drawing, painting, sculpting, poetry, fiction or essay writing. When you engage in such soul nourishing activities, all thought and energy gets focused toward goal accomplishment. At this point, you will find that even unknownforces of the universe are conniving to assist you in your amateurish but sincere attempts. As you progress, you are motivated to do better. You touch and access afaculty, a part of you that you never knew existed. Your inner artist is unleashed, baring the beauty of your soul that has found a fond medium of expression. Forinstance, a sculptors soul is seen in his artwork; a musicians in his compositions; an actors in his acting, a painters in his paintings and so on. It is immaterialwhether your effort is an immaculate artwork or just a clumsy attempt by a layperson. The idea is to try, be inspired and to create giving free rein to the mind. AsMichelangelo remarked: “I saw the angel in the marble and carved until I set him free”! What can you infer from Michelangelos statement - "I saw the angel in the marble and carved until I set him free"?
Read the passage carefully and select the best answer to each question out of the given four alternatives. One should consciously engage in activities that will nourish your soul. Just as we nourish the body, we need to nurture the soul to connect to the creative power ofthe universe and to manifest joy in our lives. Often, we forget to address the soul, lost as we are in a jungle of material and sensual pleasures. But the more youembrace what feeds your soul, the happier you become. So if you want to enjoy the abundance of life, engage in what enriches your soul. Nurturing the soul is allabout finding calm amidst chaos. There are a number of practices that empower people towards this end including silent contemplation, various forms of meditation,yoga and tai chi However, the rigor and discipline involved in the pursuit of such practices often seems to discourage people. Add to this, the temptations of thematerial world that leave little time and motivation for anyone to pursue the spiritual path. Poet Walt Whitman declared: “Whatever satisfies the soul is truth”. Thegood news is that simple, everyday activities can also nutrify the soul — like spending time in the midst of nature, dancing in the rain or just putting thoughts onpaper. Do whatever is calming and pleases you. Creative pursuits are particularly appealing as inside each one of us, there is an artist craving for release andawaiting an opportunity for expression. One of the ways to indulge the artist within is to get started with the practice of any one or more of the creative art formssuch as music, singing, dancing, acting, drawing, painting, sculpting, poetry, fiction or essay writing. When you engage in such soul nourishing activities, all thought and energy gets focused toward goal accomplishment. At this point, you will find that even unknownforces of the universe are conniving to assist you in your amateurish but sincere attempts. As you progress, you are motivated to do better. You touch and access afaculty, a part of you that you never knew existed. Your inner artist is unleashed, baring the beauty of your soul that has found a fond medium of expression. Forinstance, a sculptors soul is seen in his artwork; a musicians in his compositions; an actors in his acting, a painters in his paintings and so on. It is immaterialwhether your effort is an immaculate artwork or just a clumsy attempt by a layperson. The idea is to try, be inspired and to create giving free rein to the mind. As Michelangelo remarked: “I saw the angel in the marble and carved until I set him free”! According to the passage, what makes us really happy?
The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments and which is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: A shortage of bank branches and ATMs across India’s hinterland is holding back Prime Minister Narendra Modi’s financial inclusion efforts and risks angering rural voters ahead of elections next year. After taking office in 2014, Modi set an ambitious target to open a bank account for every household to ensure welfare funds flow directly to India’s poor, while improving access to credit and insurance programs. He pushed policies that helped bring 310 million people into the formal banking system in just four years, according to the World Bank. Based on the arguments stated below and he information stated above, which of the following arguments state the reason for the problem, ‘But many of India’s villages still lack bank branches or ATMs to help service new customers, while the pace of building new financial infrastructure has actually slowed’.  Arguments: I. Because Modi’s government effectively forced poor citizens into the banking system by linking some welfare benefits to bank accounts, villagers have ended up stuck in long queues and struggling with ATMs that often run out of cash or break down.  II. With an election due next year, the mismatch between the government’s policies and the rural banking system is generating frustration among a key slice of India’s electorate. III. The banking system struggled to keep up, while some gains proved temporary. Nearly half of Indian bank accounts were inactive in 2017, meaning they weren’t used at all in the previous 12 months
Read the passage carefully and select the best answer to each question out of the given four alternatives. One should consciously engage in activities that will nourish your soul. Just as we nourish the body, we need to nurture the soul to connect to the creative power ofthe universe and to manifest joy in our lives. Often, we forget to address the soul, lost as we are in a jungle of material and sensual pleasures. But the more youembrace what feeds your soul, the happier you become. So if you want to enjoy the abundance of life, engage in what enriches your soul. Nurturing the soul is allabout finding calm amidst chaos. There are a number of practices that empower people towards this end including silent contemplation, various forms of meditation,yoga and tai chi However, the rigor and discipline involved in the pursuit of such practices often seems to discourage people. Add to this, the temptations of thematerial world that leave little time and motivation for anyone to pursue the spiritual path. Poet Walt Whitman declared: “Whatever satisfies the soul is truth”. Thegood news is that simple, everyday activities can also nutrify the soul — like spending time in the midst of nature, dancing in the rain or just putting thoughts onpaper. Do whatever is calming and pleases you. Creative pursuits are particularly appealing as inside each one of us, there is an artist craving for release andawaiting an opportunity for expression. One of the ways to indulge the artist within is to get started with the practice of any one or more of the creative art formssuch as music, singing, dancing, acting, drawing, painting, sculpting, poetry, fiction or essay writing. When you engage in such soul nourishing activities, all thought and energy gets focused toward goal accomplishment. At this point, you will find that even unknownforces of the universe are conniving to assist you in your amateurish but sincere attempts. As you progress, you are motivated to do better. You touch and access afaculty, a part of you that you never knew existed. Your inner artist is unleashed, baring the beauty of your soul that has found a fond medium of expression. Forinstance, a sculptors soul is seen in his artwork; a musicians in his compositions; an actors in his acting, a painters in his paintings and so on. It is immaterialwhether your effort is an immaculate artwork or just a clumsy attempt by a layperson. The idea is to try, be inspired and to create giving free rein to the mind. AsMichelangelo remarked: “I saw the angel in the marble and carved until I set him free”! According to the passage, why even our amateurish attempts motivate us?
Read the passage carefully and select the best answer to each question out of the given four alternatives. One should consciously engage in activities that will nourish your soul. Just as we nourish the body, we need to nurture the soul to connect to the creative power ofthe universe and to manifest joy in our lives. Often, we forget to address the soul, lost as we are in a jungle of material and sensual pleasures. But the more youembrace what feeds your soul, the happier you become. So if you want to enjoy the abundance of life, engage in what enriches your soul. Nurturing the soul is allabout finding calm amidst chaos. There are a number of practices that empower people towards this end including silent contemplation, various forms of meditation,yoga and tai chi However, the rigor and discipline involved in the pursuit of such practices often seems to discourage people. Add to this, the temptations of thematerial world that leave little time and motivation for anyone to pursue the spiritual path. Poet Walt Whitman declared: “Whatever satisfies the soul is truth”. Thegood news is that simple, everyday activities can also nutrify the soul — like spending time in the midst of nature, dancing in the rain or just putting thoughts onpaper. Do whatever is calming and pleases you. Creative pursuits are particularly appealing as inside each one of us, there is an artist craving for release andawaiting an opportunity for expression. One of the ways to indulge the artist within is to get started with the practice of any one or more of the creative art formssuch as music, singing, dancing, acting, drawing, painting, sculpting, poetry, fiction or essay writing. When you engage in such soul nourishing activities, all thought and energy gets focused toward goal accomplishment. At this point, you will find that even unknownforces of the universe are conniving to assist you in your amateurish but sincere attempts. As you progress, you are motivated to do better. You touch and access afaculty, a part of you that you never knew existed. Your inner artist is unleashed, baring the beauty of your soul that has found a fond medium of expression. Forinstance, a sculptors soul is seen in his artwork; a musicians in his compositions; an actors in his acting, a painters in his paintings and so on. It is immaterialwhether your effort is an immaculate artwork or just a clumsy attempt by a layperson. The idea is to try, be inspired and to create giving free rein to the mind. AsMichelangelo remarked: “I saw the angel in the marble and carved until I set him free”! Why do creative pursuits appeal us?
The question given below consists of a statement, followed by three arguments numbered I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments and which is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: State-run Energy Efficiency Services (EESL) has scrapped its second tender for procurement of 10,000 electric cars as the industry awaits clarification on specifications for chargers which will allow higher end, luxury automakers to come into the picture. This tender was floated in April and had been on hold after a preliminary pre-bid meeting. A similar tender was floated in August last year, and the rollout of 10,000 cars under the tender was expected to be completed by March 2019.  Why is EESL scraping the tender for procurement of 10,000 electric cars? Arguments: I. The share of luxury cars could go further up since it would be a good way of aggregating demand, Kumar said. This, however, strictly depends on the final order from DST. II. The tender had set aside 20% share of the total order for higher end and upgraded sedans category, which would allow foreign automakers like Nissan, Hyundai, Kia Motors to drive away with a fair share of the tender.  III. EESL said that the company has been awaiting clarification from the Department of Science & Technology (DST) to issue the standard norms for charging stations because of which the tender was first put on hold and now has been scrapped entirely.