Question

Statements:
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 in the public sector.

• A. Statement I is the cause and statement II is its effect
• B. Statement II is the cause and statement I is its effect
• C. Both the statements I and II are independent causes
• D. Both the statements I and II are effects of independent causes
• E. Both the statements I and II are effects of some common cause

Answer 1

Answer: (B)

Statement II is the cause and statement I is its effect

The inability of the small banks to compete with the bigger ones shall not ensure security and good service to the customers, which is an essential concomitant that has to be looked into by the Reserve Bank. I seems to be a remedial step for the same.