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Household Income

I: The govern...

Question

I: The government has decided to give tax benefits for small savings for investments and benefit accruals. However, all withdrawals of such savings are to be taxed.
II: People have been investing more in small savings than in equity market to avail maximum tax benefits.

A

Statement I is the cause and statement II is its effect.

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B

Statement II is the cause and statement I is its effect.

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C

Both the statements I and II are independent causes.

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D

Both the statements I and II are effects of independent causes.

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E

Both the statements I and II are effects of some common cause.

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Solution

The correct option is D Both the statements I and II are independent causes.
In first statement, benefits of small saving is given which is accurals.
In second statement, the reason is different.
Thus, both are effect of independent causes.
Hence, Option C is correct.

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