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

Answer 1

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.