Question

Statement: The Reserve Bank of India has directed the banks to refuse fresh loans to major defaulters.
Assumptions:
I. The banks may still give loans to the defaulters.
II. The defaulters may repay the earlier loan to get fresh loan.
III. The banks may recover the bad loans through such harsh measures.

• A. None is implicit
• B. Only I and II are implicit
• C. All are implicit
• D. Only II and III implicit
• E. None of these

Answer 1

The correct option is C All are implicit

Clearly, loans to only major defaulters is being refused. So, the banks may still give loans to some defaulters. Thus, I is implicit. Also, the RBI's decision is a measure to recover the previous loans, since one would have to clear the old debts so as to get a fresh loan. So, both II and III are also implicit.