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Characteristics of Money

I: The Reserv...

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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 banks in the public sector.

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 B Statement II is the cause and statement I is its effect.
As, the small banks in the private and co-operation sector in India are not in a position to withstand the competitions of the bigger banks in the public sector, therefore, the Reserve Bank of India has recently put restrictions on few small banks in the country.

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