Question

Statement: Shalini made an application to the bank for a loan of $Rs.1,80,000$ by mortgaging her house to the bank and promised to repay it within five years.
Assumptions:
I. The bank has a practice of granting loans for $Rs.1,00,000$ and above.
II. The bank accepts house as a collateral security against such loans.

• A. Only assumption I is implicit
• B. Only assumption II is implicit
• C. Either I or II is implicit
• D. Neither I nor II is impicit
• E. Both I and II are implicit

Answer 1

The correct option is E Both I and II are implicit

The fact that Shalini has applied for a loan of $Rs.1,80,000$ implies that the bank can grant a loan above $Rs.1,00,000$. So, I is implicit. II also follows directly from the statement and so is implicit.