Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer : I. The Reserve bank of India has recently put restrictions on few small banks in the country. II. The small banks in the private and co-operative sector in India are not in a position to withstand the competitions of the bigger in the public sector.?

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  1. If statement I is the cause and statement II is its effect.
  2. If statement II is the cause and statement I is its effect.
  3. If both the statements I and II are independent causes.
  4. If both the statements I and II are effects of independent causes.
  5. If both the statement I and II are effects of some common cause.

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Answer: Option 2

The inability of the small banks to compete with the bigger ones shall not ensure security and good services to the customers, which is an essential concomitant that has to be looked into by the Reserve Bank.

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