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Question

Statement : The government has decided to disinvest large chunk of its equity in select public sector undertakings for a better fiscal management.
Assumptions:
I. The amount generated out of the disinvestment process may reduce substantially the mounting fiscal deficits.
II. There will be enough demand in the market for the shares of these undertakings.

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

The correct option is A Only assumption I is implicit
The fact given in I directly follows from the phrase '..... for a better fiscal management' in the statement. So, I is implicit. However, the public response to the new policy cannot be ascertained. So, II is not implicit.

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