REASONING
3
Chapter
INTRODUCTION
Cause : Anything which happens has a reason for it,
this reason is known as cause. In exam, we
have asked to find out probable cause.
Probable cause is the cause which have highest pos-
sibility of occurance.
Ex. 1) There is excessive crowd gathered on road near
the square.
What is most probable cause of gathering public on
a busy roads?
Options:-
1) Distribution of money
2) Distribution of food
3) Arrival of Actor
4) Sudden Accident on road.
5) All of the above.
Answer 4:
4) Sudden Accidental on the road. This is because
there is highest possibility of occurrence of accident
on road then any other thing. But if we are asked only
to find out the probable cause then all options are
probable to happen so answer would become 5th i.e.
all of the above.
Effect: Whatever which happens that we can pre-
dict to happen due to something is known as
effect.
OR
Whatever which happens due to anything
can be considered as effect.
· What happed exactly is not effect but what may hap-
pens due to this [or particular situation] is simply
considered as probable effect.
· We cannot perfectly guess the effect so, any
effect which ‘perfectly stated’ is considered as wrong.
The effect stated in generalised way can be taken as
correct one.
· In exam we are always asked, what is prob-
able effect. Probable effect is the effect which may
occur, it is not necessary that it would happen. But it
is highest possibility of happening.
· Effect always comes chronologically after cause.
Directions (1-10): In each of the following ques-
tions, two statements numbered I and II are given.
There may be cause and effect relationship between
the two statements. These two statements may be the
effect of the same cause or independent causes.
These statements may be independent causes with-
CAUSE AND EFFECT
out having any relationship. Read both the state-
ments in each questions and mark your answer as
1) If statements I is the cause and statement II is its
effect .
2) If statement II is the cause and statement I is its
effect.
3) If both the statements I and II are independent
causes.
4) If both the statements I and II are effects of inde
pendent causes.
5) If both the statements I and II are effects of some
common cause.
Q.1. I. The private medical colleges have increased the
tuition fees in the current year by 200 per cent
over the last year’s fees to meet the expenses.
II. The Government medical colleges have not in
creased their fees in spite of price escalation.
Q.2. I. There is increase in water level of all the water
tanks supplying drinking water to the city during
the last fortnight.
II. Most of the trains were cancelled last week due to
water-logging on the tracks.
Q.3. I The Government has imported large quantities of
sugar as per trade agreement with other countries.
II. The prices of sugar in the domestic market have
fallen sharply in the recent months.
Q.4. I. The life today is too fast, demanding and full of
variety in all aspects which at times
leads to stressful situations.
II. Number of suicide cases among teenagers is on
increase.
Q.5. I. There is unprecedented increase in the number of
young unemployed in comparison to the previ
ous year.
II. A large number of candidates submitted applica-
tions against an advertisement for the post of man
ger issued by a bank.
Q.6. I. All the schools in the area has to be kept closed
for most part of the week.
II. Many parents have withdrawn their children from
the local schools.
Q.7. I. There has been a high increase in the incidents of
atrocities against women in the city during the
past few months.
II. The police authority has been unable to nab the
culprits who are committing crime against women.
Q.8. I. The prices of petrol and diesel in the domestic
market have remained unchanged for the past few
months.
II. The crude oil prices in the international market
have gone up substantially in the last few months.
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Q.9. I. The farmers have decided against selling their
kharif crops to the Government agencies.
II. The Government has reduced the procurement
price of kharif crops starting from last month to
the next six months.
Q.10. I. The school authority has asked the X Std. students
to attend special classes to be conducted on Sun
days.
II. The Parents of The X Std. students have withdrawn
their wards from attending private tuitions con
ducted on Sundays.
Answers:-
1. (3) The increase on the fees of the private col-
leges and their being no increase in the same in
government colleges seen to be policy matters un
dertaken by the individual decisive boards at the
two levels.
2. (5) The problem discussed in both the statements
are clearly the result of heavy downpour in the
area.
3. (1) The increase in supply always triggers a re
duction in the prices.
4. (1) Stress in everyday life is a major cause of frus
tration among the youth and is bound to lead them
to take harsh steps as suicide.
5. (1) An increase in the number of unemployed
youth is bound to draw in huge crowds for a single
vacancy.
6. (4) Closing the schools for a weak and the parents
withdrawing their wards from the local school are
independent issues, which must have been trig
gered by different individual causes.
7. (3) An increase in the cases of atrocities on women
and the police being unable to nab the culprits in
volved in the same are independent happenings in
themselves.
8. (4) The prices of patrol and diesel being stagnant
in the domestic market and the increase in the same
in the international market must be backed by in
dependent cause.
9. (2) The reduction in procurement price of crops
must have instigated the armers not to sell their
produce to Government agencies.
10. (1) It seems quite evident that the parents have
instructed their wards to abstain from private tu
itions on Sundays and attend special classes orga-
nized by the school
************
Cause & Effect
EXERCISE (Cause)
Q.1. Statement : - State-owned Coal India reported 16.2 %
drop in its consolidated net profit at ‘ 3262.49 crore
for the quarter to December.
Which of the following can be a probable cause of
the drop in the profit?
1) Drop in the coal output from the coal mines
2) Higher overhead expenses
3) Strikes by the unions of Coal India
4) Lack of human resource.
5) All of these
Q.2. Statement : India’s tiger count has gone up by more
than 30 per cent in the past four years, according to
the latest study on tiger population .
Which of the following may be a probable cause/
causes of the above statement?
1) Pro-tiger initiatives taken by the previous government
2) Government conservation efforts and the crack
down on rampant poaching and dwindling habitats
3) Increase in the number of forest reserves
4) All the above
5) Only 1 and 3
Q.3. Statement : Directly stepping into the cyber world ,
India Post in going to launch its own e-commerce
portal in the shape of those like Amazon or eBay soon.
Which of the following may be the most probable rea-
son India post for making such an announcement?
1) India post is losing its profits day by day.
2) India post is losing its customers hold in the mar-
ket.
3) India post wants to expend its business in the in
ternational market.
4) Wide and fast growing coverage of internet
through computer and mobile phones is bringing
more and more people from even remote corner to
the doorsteps of e-commerce.
5) All the above
Q.4. Statement : The central government agencies SFAC
and Nafed have decided to sell Nashik onion in Delhi.
Which of the following may be the main reason for
the above statement?
1) TO control the rising prices
2) To ease inflation
3) To benefit the traders
4) To curb black marketing
5) None of these
Q.5. Statement : Over one-third of the Indian population
living in rural areas is illiterate even after 68 years of
independence, according to the Socio Economic and
caste Census (SECC) 2011.
Which of the following may not be a probable rea-
205

son for the illiteracy in India?
1) Lack of primary and secondary school
2) Availability of good teachers in private and gov
ernment schools
3) Lack of awareness and importance of study as
compared to income sources
4) Good vocational training in schools and colleges
5) Only 2 and 4
Q.6. Statement : India will overtake China, the world’s most
populous nation, by 2022, according to the new UN
report, which revises its previous estimates, which
put the date around 2028.
Which of the following may not be a probable rea-
son for the rise in India’s population?
1) Illiteracy in the country
2) Rise of young people in the reproductive age
3) Decrease in mortality rate
4) Increase in average life expectancy
5) Decline in employment opportunity
Q.7. Statement : A fundamental faux in the admission of
elite Indian engineering colleges has resulted in 3200
spots lying vacant add the end of the admission pro-
cess.
Which of the following may be a probable reason
for the seat lying vacant in the college?
1) A set of rules framed by the joint seat allocation
authority
2) Seat once reserved, not allowed to be withdrawn
by the candidates after the counseling
3) Students only looking for admission to talk IIT’s
4) Less job opportunity in the market with courses
offered by the premier institutes
5) Ragging by the seniors during the first year of the
course
Q.8. Statement: The premier Indian Institute of Technol-
ogy (IITs) and National Institute of Technology (NIT)
are dream destination for most undergraduate stu-
dent in the country but of survey conducted by a gov-
ernment agency has founded that over 4400 students
dropped out of IITs and NITs in the last three years.
Which of the following may not be a probable rea-
son for the dropped out of students?
1) Inability to cope with academic stress
2) No attention on study after cracking the entrance
exam
3) No certainty of jobs after finishing the course
4) Allowing parents to stay with the student in the
first year of the course
5) Only 1 and 2
Q.9. Statement: London, New york, Hong kong and
Singapore are global financial centers.
Which of the following may not be a probable rea-
son for the above phenomenon?
1) The climate of these cities is among the best in the
Cause & Effect
world.
2) Financial institutions bested there can move capi
tal across the world easily.
3) There physical infrastructure is among the best in
the world.
4) There regulatory and tax structures are stable.
5) These cities give you the freedom to innovate
Q.10. Statement: Reserve bank of India governor has kept
interest rates unchanged in the new monetary policy.
Which of the following may be a probable cause for
taking the above step?
1) The inflation the demon needs to be slayed once
and for all.
2) Inflation is under control.
3) The Indian economy is on its course to revive.
4) Can’t be determined
5) None of these
Q.11. Statement: Company X, one of the top three Indian
IT firms, cut its full-year revenue growth forecast 2.5
%.
Which of the following can be the best possible rea-
son for the modification in the forecast?
1) The companies revenue will now be at least $220
million less than earlier projections.
2) There has been continued weakness in best per
forming sectors, including manufacturing, retail
and healthcare.
3) Slowness in revenue growth will hopefully get
people out of their comfort zones.
4) Its position as the fastest-growing IT services com
pany has now become a drag.
5) None of these
Q.12. Statement: Exim Bank has asked for a 50 per cent in-
crease in the borrowing limit.
Which of the following may be a probable cause for
the above demand by the Exim Bank?
1) The commerce secretary has asked for its differ
ential treatment from commercial banks.
2) It is in demand in many neighbouring countries as
well as some developing countries in Africa.
3) Unlike commercial banks, it does not depends on
public deposits for its lending.
4) Currently it cannot lend to large value projects,
especially in railways, roads and power sectors.
5) None of these.
Q.13. Statement: RBI has changed the repo rate and re-
verse repo rate last week.
Which of the following may be a probable cause for
the above demand by the Exim Bank?
1) The commerce secretary has asked for its differ
ential treatment from commercial banks.
2) It is in demand in many neighboring countries as
well as some developing countries in Africa.
3) Unlike commercial banks, it does not depend on
206

public deposits for its lending.
4) Currently it cannot lend to large value projects,
especially in railways, roads and power sectors.
5) None of these.
Q.14. Statement: The underground water level below the
ground has gone below the minimum water level last
attended in fifteen years this summer in the west part
of the state Maharashtra.
Which of the following would be a probable cause of
the statement?
1) More water being used for irrigation purpose
2) Deforestation in the western part of the state last
year.
3) Less rainfall recorded in the monsoon this season
4) Less rainfall in the Maharashtra last year.
5) More water wasted by city and industries in thecity.
Q.15. Statement: IMF declared that the position of railways
in India despite of being one of very old system of
locomotive running in the world, has not shown very
much progress in the technology as compared to the
system of new developing countries who have hi
speed locomotive, as a matter when a case of world
bank loan arise.
Which of the following would be a probable cause of
the statement?
1) Being developing country, more focus on other
system was the primary concern.
2) Rails available in India are capable to run hi speed
trains safely.
3) Having the system of locomotive with large num
bers of travelers to travel in cheaper rate
4) Absence of proper locomotive pilots that can drive
the locomotive at faster speed
5) only 2 and 3
Q.16. Statement: Growth rate in eight core industries
showed 1.8 per cent in the last month, the lowest in
13 months.
Which of the following can be a probable cause of
the above statement?
1) Contraction in the production of crude and natural
gas production
2) Slow growth in cement and electricity industry
3) High rate of interest for corporate loans
4) Growth in the output of steel, cement and electric
ity industry
5) Only 1) and 2)
Q.17. Statements: Government allowed 100 per cent FDI for
White Label ATMs under the Automatic Route.
Which of the following way to the reason for such
step?
1) It was done to improve the trade relations with
some countries.
2) This was the only way to facilitate banking conve
Cause & Effect
nience to the rural people.
3) It was done to boost financial inclusion in the coun
try.
4) It was necessary as these banks were not function
ing properly.
5) All except.
Q.18. Statement: India’s tiger count has gone up by more
than 30 per cent in the past four years, according to a
latest study on tiger population.
Which of the following may be a probable cause of
the above statement?
1) Pro-tiger initiatives taken by the NDA government.
2) Government conservation efforts and the crack-
down on rampant poaching and dwindling habitats.
3) Increase in the number of forest reserves.
4) All of the above
5) Only 2) and 3)
Q.19. Statement: Directly stepping into the Cyberworld,
India post is going to launch its own e-commerce
portal in the shape of those like Amazon or flip kart.
Which of the following may be a probable reason
for the post office for making such announcement?
1) Indian Post is losing its profits day by day.
2) Indian Post is losing its customer hold in the mar-
ket.
3) Indian Post wants to expand its business in the
International market.
4) Wide and fast growing coverage of internet
through computer and mobile phones are bring-
ing more and more people from even remote cor-
ners to the door steps of e-commerce.
5) All of these
Q.20. Statement: Online retailer Flipkart, which took quite a
few knocks during its big discounted sale day last
October, has started preparing for another such event
at the end of this year that will be “many times big-
ger” and is working to improve its ability to antici-
pate demand, deliver goods faster and eliminate sub-
standard and fake products. Which of the following
can be a probable cause for the discounted sale by
the Flip Kart?
1) Flipkart plans to work closely with the sellers on
its site to improve its ability to predict demand and
invest more in automating its supply chain to speed
up delivery.
2) Almost 1.5 million shoppers bought goods such as
phones, clothes and accessories worth over $100
million from Flipkart on the last year big day sale.
3) Flip Kart aim to have at least 10,000 sellers be
come millionaires this year through the mega sales
generated on the platform.
4) E-commerce business will aim to double the
strength of its technology team in the next 12-18
months.
5) Other than given options
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Q.21. Statements :- On the occasion of Teacher’s Day, Mr.
Sharma, state awardees and a retired Principal, had
questioned the celebration of Teacher’s day in today’s
materialistic word.
Which of the following may be a reason behind the
above statement?
I. The expenditure of Teacher’s Day celebration is
done by only students.
II. More funds are allocated for the celebration of
Teacher’s day.
III.The role and responsibility of Teachers has been
changed in today’s perspective.
1) All I, II and III are valid 2) Only II and III
3) Either I or II 4) Only III
5) Other than given option
Q.22. Statement: Most of the developing countries of the
world including India while making the annual bud-
get keep one thing in mind to make the budget a defi-
cit budget although they can also make the balance
budget like the most developed countries of the world
do.
What could be the possible reason behind making
the deficit budget.
I. The deficit budget helps in the economic develop
ment of the India.
II. Deficit in the budget motivates people to work
more hard to fulfil the deficit.
III. Balance budget will put more burden of tax on
the people.
IV. Deficit helps them to take the loan from the World
Bank and IMF.
1) Only I 2) Only I and II 3) Only II
4) Only III 5) Only III and IV
Q.23. Statements: India’s external debt increased by $ 8.5
billion in the April–June period to $ 482.9 billion at
June–end 2015.
Which of the following may be the cause for such
increment in debt?
1) Higher commercial borrowings
2) A sharp increase in NRI–deposits
3) Both 1) and 2) 4) Short term trade credit
5) All 1), 2) and 4)
Q.24. Statement: A fatal disease has spread across the ‘Spat-
ter’ village of state X. even though the prescribed
medicine is abundantly available in one of the cities
near ‘Spatter’ which can cause the disease, the Medi-
cal Association of the state has decided not to allow
the medicine to be transported to’ Spatter’ and is call-
ing the infected people to the city to be injected with
the medicine.
Which of the following can be a reason behind the
decision of the Medical Association?
1) The association may not be able to earn high prof
its from selling the medicine to ‘Spatter’
Cause & Effect
2) Many of the villages may not be able to afford the
medicine as it is highly priced.
3) The disease has started to spread in other villages
also, making it challenging for the association to
provide the medicine everywhere.
4) Reportedly, many of the villagers are trying home
remedies to reduce the effect of the disease and
hence they may not require the medicine.
5) If the medicine is not injected under the prescribed
controlled environments, it may have adverse effects.
[IBPS Regional Rural Bank PO (Officer Scale – I, II,
III]
Q.25. Statement: Some pre-school in city Y have recently
discontinued the physical safety training for toddlers
which was compulsorily provided to staff members
for three months after joining.
Which of the following may be a reason for the deci-
sion taken by some of the school in city?
1) Even after employing trained staff members and
providing further training to them, a few parents
in city Y do not send their children to preschools
as they are worried about the safety of their chil
dren.
2) A manual of safety is followed by all preschool of
city Y.
3) Some teachers, who have been associated with
these preschool for long, have suggested that
the training which was provided to the institute
was a little different as compared to the training
provide now .
4) All pre-school in city Y have recently started em
ploying only those people who have a certifica
tion in physical safety to toddlers and providing
additional training simply leads to duplication of
what they have already learnt.
5) There is no authority in city Y to regular whether
the staff members of school are provided train-
ing.
[IBPS CWE SO (IT Officer)14-02-2015]
Q.26. Statement: In spite of conducting several awareness
programmes and receiving monetary help from the
government, the women self-help groups are not very
successful in rural areas of state-B.
Which of the following statement cannot be a rea-
son for given problem?
1) Mobility is highly limited for women due to social
barriers in rural areas.
2) Women self-help groups are unable to complete
the orders on time due to manpower shortage.
3) Women in rural areas of state B hesitate in starting
their own ventures due to lack of practical knowl
edge
4) Only 55% of the women in rural areas of State B
have matriculation certificate.
5) Self-help groups in rural areas of State B lack an
organized structure to pump in enough money for
208

advertising their products.
[IBPS RRB Officer ( Scale – I&II) 13-09-2015) ]
Q.27. Statement: The temple at the religious site wears a
deserted look with the number of devotees trickling
down.
Which of the following can be a possible cause of the
above effect?
[IBPS SO (IT Officer) 17-03-2013]
1) A structural engineer had visited the temple a
month back and had declared the structure unsafe.
2) The temple is facing a drastic depletion for its funds
which had accumulated over the years due to of
fering made by devotees
3) The local corporation decided to donate a huge
amount of money to the temple for its renovation.
4) The village housing in the religious site has quali
fied priests to perform religious ceremonies.
5) A famous actor recently visited the temple and paid
his respects to the deity.
Q.28. Statement: as a step to regular privates hospitals, the
state health department is framing rules to ensure all
such hospitals are registered with it.
Which of the following can be a possible cause of
the above statement?
1) The department realized the private hospitals
charge much less for treatment as compared to
gov ernment hospitals.
2) Government run hospitals do not maintain the
same standards as private hospitals.
3) The department realized that several hospitals
were rejecting cases stating lack of infrastruc-
ture.
4) Apart from the number of doctors, nurses and
beds, the kind of procedure a hospital can carry
out based on its infrastructure will also be regis-
tered and de tailed.
5) Private hospitals not registering with the depart
ment shall be forced to do so and will have to pay
hefty penalties.
[IBPS SO (IT Officer) 17-03-2013]
Q.29. Statement: After the government announced a com-
pensatory policy for farmers in return for the acqui-
sition of their land, the farmers demanded a written
proof if the policy.
Which of the following could possibly be a cause for
demanding the written proof?
1) The farmers were unable to contest the inadequate
compensation for their land in earlier such policies.
2) The compensation promised in the policy was
grossly inadequate.
3) The farmers were unwilling to surrender their lands
to the government .
4) The farmers demand a certain percentage of share
Cause & Effect
out of the revenue generated by the government
of their lands.
5) The only option to enforce the government offi
cials to frame a compensatory policy for the farm
ers was to demand a proof.
[IBPS SO(IT Officer) 17-03-2013]
Q.30. Statement: The number of cases concerning a non-
contagious chemical poisoning is on the rise among
local villagers.
Which of the following could possibly be a cause of
the statement given above?
1) The government has ordered an immediate enquiry
into the matter.
2) Unless timely treatment is provided to the patients,
the poisoning can prove to be fatal.
3) Many factories surrounding the village do not dis
pose off their wasters appropriately.
4) The only hospital in the area is not equipped to
treat chemical poisoning related ailments.
5) A study done a couple of years ago had reported
that a large number of farmers had stopped using
chemical fertilizers owing to their ill-effects on
health.
[IBPS SO( IT Officer) 17-03-2013]
EXERCISE (Effect)
Q.1. Statement: India will set up a bank which will facili-
tate the funding for the small entrepreneurs that will
boost up the backbone of the country’s economy
Which of the following can be a possible effect of the
above statement?
1) It will help curb the bribes in Public Sector Banks.
2) It will give a boost to upcoming entrepreneurs.
3) More jobs will be created in the banking sector.
4) Small scale Industries (SSI) will be boost up.
5) Only 2) and 4)
Q.2. Statement: Rains have a set in.
Which of the following can be a possible effect of the
above cause?
1) Air – conditioner will be used less.
2) There will be more cases of chickenpox.
3) Rise in number of accidents
4) All the above
5) None of the above
Q.3. Statement:Indian government is planning to set a goal
of 50 crore internet connection by the end of 2018.
Which of the following may be a effect for the above
mentioned planning?
1) India will become superpower in internet
2) All the 2.5 lacs gram panchayat will get connected
to internet
3) Number of subscribers will touch a figure of 50
crore
4) The government offices will get connected to hi
speed broadband.
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5) None of these
Q.4. Statement: Ministry of telecom has decided to set up
450 new towers along the border areas of Bangladesh
Bhutan and Nepal borders.
Which of the following may not be a effect for the
above decision?
1) Mobile connectivity will be boosted up in the bor
ders areas.
2) Call drop problem will be minimized.
3) Number of customers will get increased in the new
base.
4) Maximum number of customers will be connected
to roaming in the new base.
5) People from the new base along the borders will
be connected to all over country.
Q.5. Statement: IIM Bangalores final placement process
has seen a spurt in hiring by overseas firm and a 15-
20 per cent increase in average salary offer.
Which of the following can be a possible effects of
the above cause?
1) The hiring companies have come back on campus
2) In the telecom sector, Vodafone was one of the
biggest recruiters with 10-12 offers..
3) There has been a rush to management institutes
for MBA programmes.
4) There has been a queue for H-1B visas.
5) None of these.
Q.6. Statement: RBI has changed the repo rate and re-
verse repo rate last week.
Which of the following can be possible effects of the
above cause?
1) The private insurance companies will increases
ULIP policies benefits
2) CRR limits for scheduled banks will change ap
propriately.
3) Banks will increase the interest rate for all the loan
customers applying for.
4) There will be decrease in the interest rate for loans.
5) None of these.
Q.7. Statement: Lakhs of banking employees are on strike
protesting the merger of the subsidiary bank of SBI in
SBI.
Which of the following may be the effect of that
strike?
1) Customers are unable to deposit or withdraw cash
in branches.
2) Cheques worth crores could not be cleared.
3) Public will start protest against the employees.
4) All of the above
5) Only 1 and 2
Q.8. Directions (1 to 4): Study the following information
carefully and answer the question given below:
Statements: Bihar government has decided to ban
totally on sale and consumption of liquor in the state,
trying to fulfill the election promise.
1. Which of the following may be the effect of such step?
Cause & Effect
1) The black marketing of liquor will become rampant.
2) Government will have to incur a huge revenue loss.
3) Health problems related to liquor will decrease
4) This will end the major source of income
5) All of the abov
2. Statement: Reserve Bank of India governor Raghuram
Rajan brought down its key policy rate by 25 basis
points to 7.5 per cent in its second move this years
outside official policy meetings.
Which of the following can be an effect of the state-
ment given above?
1) EMI for loan products will come down.
2) Bank shares will gain as the value of their bond
portfolio will rise.
3) Corporate loans will become cheaper.
4) The economy will grow at a faster pace.
5) All of these
3. Statement: State oil marketing companies are selling
mini cooking gas cylinders of 5kg across the country
at subsidised rates of ‘150 each to over 2.75 lakh con-
sumers.
Which of the following can be effect of the above
statement?
1) Up to 34 cylinders of 5kg capacity are given at
subsidised rate to a customer in a year and con
sumption beyond 34 cylinders in a year at non–
subsidised rate.
2) The 5kg cylinders will not be used in taxis, restau
rants or in catering units.
3) Only registered consumers will get subsidy on
small cylinders.
4) the 5kg cylinders are popular in far-flung areas,
villages and small towns.
5) These cylinders will be boon to the poor and needy
people.
4. Statement: The highways sector could see a near
doubling of allocation to ‘ 45,000 crore as part of the
government’s push to infrastructure in the coming
budget owing to confidence among planners that
quick results can be achieved in this sector if funds
are made available.
Which of the following can be possible the effect of
the decision taken by the government?
1) It will help the government in awarding a contract
of about several kilometres of roads in the
current fiscal.
2) National Highway Development Project (NHDP)
will achieve the National Highway construction
target.
3) Infrastructure growth will boost up.
4) Only 1 and 2
5) All of these
Q.9. Statement: IS is recruiting more jihadis to attack more
places, kill innocent people and loot the resources
needed for its organisation.
Which of the following will be a strong effect of the
above statement?
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1) More employment will be generated.
2) Terror will prevail at nearby states.
3) This activity will rupture civil right and peace.
4) IS will be more powerful economically and by
manpower.
5) None of these
Q.10. Statements: Government of India has launched Gold
Bond, Gold Monetisation schemes
Which of the following may be the effect of such
schemes on the overall economy of India?
1) This would boost domestic supply.
2) Relying on imports of gold will decrease automatically.
3) People would buy this precious metal as an invest-
ment.
4) All 1), 2) and 3)
5) Only 1) and 2)
Q.11. Statement: The United Nations Framework conven-
tion on climate change (UNFCCC) is worried of the
increasing global warming on the earth due to which
the climate on the earth is constantly changing.
What could be the possible ill effects of the increas-
ing global warming on the earth?
I. The Mangrove forest will get submerged under the
water.
II. The low line areas of the world will vanished very
soon.
III. The glaciers present in the arctic areas will melt.
IV. The Sea level will rise very fast.
1) Only I 2) Only I and II
3) Only I and III 4) Only III and IV
5) All of the above
Q.12. Statement: Now companies have a great platform to
sell their products and that platform is Internet.
Which of the following is/are the effect of this pat-
tern of marketing?
1) Now people have more choices comparatively at
lower prices.
2) Offline marketing is being adversely affected.
3) Both 1) and 2)
4) Number of companies which are doing online mar
keting is increasing day by day.
5) All 1), 2) and 4)
Q.13. Statement: Government has recently announced a hike
in gold import duty from 6% to 8%.
Which of the following will be best possible effect of
the above cause?
1) The gold traders will be encouraged to raise the
price of gold by 10%
2) There will be a decrease in gold imports duty.
3) The gold traders will stop purchasing gold from
the market.
4) The imports of gold will be completely stopped.
5) Other than given options
Q.14. Statements: the Income Tax authorities carried out
raids at three different business houses in the city
last week.
Which of the following can be a possible effect of
Cause & Effect
the above statement?
1) The three business houses are regular defaulters
in payment of their income tax.
2) The income Tax department have received a tip
off about the illegal activities going on in the three
business house.
3) The government decided to look into the matter
and has appointed in inquiry committee.
4) Other business house took immediate action to
clear off all their income tax dues in order to avoid
a raid on their establishments.
5) The authorities intend to conduct raids in several
other business house in the vicinity.
[IBPS SO (IT Officer) 17-03-2013]
Q.15. Statement: the college has finally received accredita-
tion and has gained the status of a deemed univer-
sity.
Which of the following can be a possible effect of the
above statement?
1) The principle of the college will now have to be a
retired government official
2) Number of students seeking admission to this col
lege in the next academic year would drop signifi
cantly.
3) The college will charge lesser fees from all its stu
dents despite not getting a grant from the govern
ment.
4) The college will reduce the number of course that
it runs by a significant margin.
5) The reputation of the college amongst the student
population in general has improved.
[IBPS SO (IT Officer) 17-03-2013]
Q.16. Statement: Small grocery shop owners have gone on
a day’s strike in order to protest against the entry of
a foreign retail store chain in the city.
Which of the following statements can be an Effect
of the statements given above?
1) The small grocery shop owners perceive the big
retail giants as sharks, trying to dominate the avail
able market space.
2) Foreign investment in retail has shown a tremen
dous growth in India since a couple of years.
3) There have been several countries in which retail
chain giants have totally wiped out small scale gro
cery shops.
4) The government agreed to take all political steps
required to safeguard the interests of small scale
retailers.
5) A recent survey indicated that a large number of
people prefer to buy their daily grocery items from
the nearby, grocery stores than big retail chain
stores.
[IBPS SO(IT Officer) 17-03-2013]
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