A Complete Guide on Reasoning Ability for Banking Examinations

(5) A statement is uncertain, if its truth or falsity cannot be ascertained to any degree from the given data. A
statement is uncertain or ‘data inadequate’ if the given data is not sufficient to evaluate the definiteness or
probability of the inference. Taking the probability example from the previous explanation, the data is
uncertain when the probability of its truth or falsity is 50%.

Points to Remember:
Inference is a conclusion/deduction/proposition drawn from the given passage with the help of facts and justifiable assumption
Inference must be from "the point of view" of the passage and not your personal point of view.
Analyze the "scope" of passage. Inference must be with in the scope of passage.
First look for definitely true and definitely false inferences. Then use ellinination method to determine "Probably true" and "
"Assumption" should be relevant, logical and universally acceptable.

Directions (1-40) 1. The best port in the world is located in the United
In each question below is given a passage followed by States of America.

several inferences. You have to examine each inference
separately in the context of the passage and decide
upon its degree of truth or falsity.
Mark your answer as:
(a) If the inference is ‘definitely true’ i.e., it directly
follows from the facts given in the passage;
(b) If the inference is ‘probably true’ though not
definitely true in the light of the facts given;
(c) If you think the data are inadequate i.e., from the
facts given you cannot say whether the inference is
likely to be true or false;
(d) If you think the inference is ‘probably false’ though
not definitely false in the light of facts given; and
(e) If you think the inference is ‘definitely false’ i.e., it
contradicts the given facts.
India needs higher investment in the port sector and still
lags far behind international ports in container traffic,
though there has been considerable growth in this
segment over the past few years. There is a need to
continually benchmark Indian ports against the best
ports worldwide and continue to engage in policy
efforts so as to attain prices per container of port services
which are the lowest in the world. The average turn-
around time for ships docking at most of the ports in
India has been falling for the past three years.
However, pre- berthing time has been marginally
increasing over the years.
2. Indian ports have not been graded so far on the
international standard.
3. India ports need considerable development to match
with the best ports in the world.
4. Pre-berthing time is gradually decreasing over the
years.
5. Indian ports offer the lowest price per container as
service charges.
Directions (6-10)
Cotton Acreage in India during the current year has
fallen by 10% as cotton growers had moved on
cultivation of other cash crops. This is the result of cotton
glut in the world markets in post-September 11 and the
consequent slowdown in the world economy. But this
scenario brought with it benefits to one segment of the
industry – yarn manufacturers, as they get higher prices
for their produce. Some yarn manufacturers too had
stocked up on low priced cotton last year. The combined
effect of all this evident in the rise in net profits and net
margins of yarn manufacturers.
6. Land used for growing cotton in India is conducive
to grow other cash crops.
7. The farmers will again grow cotton next year due to
increased price of cotton yarn.
8. There has been shortage of cotton in the world
market last year.
9. There has been a huge drop in the supply of cotton
during the current year.
10. World economy witnessed an upward trend during
pre-September 11 period.

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Directions (11-15) factories employing less than 10 workers.
Pollution amounts to slow murder. Regular exposure to
industrial and vehicular pollution leads to life
threatening diseases like asthma, heart problems, cancer
and various other disorders. Therefore, nobody has the
right to pollute, rich or poor. Industrial and vehicular
pollution are growing rapidly across the country. It is not
just metropolitan centres that are heavily polluted
today but also small and medium towns. Pollution is
growing faster than the economy. This is because the
western technological model, built on heavy use of
energy and materials, is an inherently highly toxic
model. It produces huge amounts of toxic pollutants,
which can be controlled if there is careful choice of
technology and there is considerable discipline in its
use.
11. The industries which use higher level of energy
create more pollution.
12. The spread of pollution has gathered momentum in
the recent past.
13. The smaller industrial units contribute
proportionately higher pollution.
14. The pollution level in the western world is
considerably more than in India.
15. Proper planning in use of modern technology leads
to less pollution in the environment.
Directions (16-20)
In India, the asbestos industry is growing and employs
more than 15,000 people in 75 units which are spread
over several states like Gujarat, Madhya Pradesh,
Maharashtra, Andhra Pradesh etc. Surprisingly,
advanced countries are banning cancer causing
asbestos products, multinational companies from those
countries which are setting up units in developing
countries like India, one reason being lack of awareness
in the society and indifference of the government
machinery of these countries. Prolonged exposure to
asbestos dust and fibers can cause lung cancer but
most workers in India are too afraid to protest for fear
of losing jobs. Some of these factories are operating in
Mumbai. Quite a few of the factories in India are not
known to take adequate precautions to protect
workers from asbestos dust.
The Government is taking several steps to provide
medical inspection of workers. In fact it has amended
Factories Act to extend the provision to even those

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Directions (16-20) treat symptoms and
16. The asbestos industries in India are located in few
metropolitan pockets only.
17. The regular medical inspection and treatment of
asbestos workers has improved the health status
in advanced countries.
18. The advanced countries are concerned and careful to
protect health hazards of its people.
19. The asbestos industry is one of the largest industries
in India.
20. The demand of asbestos products appears to be
growing in India.
Directions (21-25)
Economic liberalization and globalization have put
pressures on India industry, particularly on the service
sector, to offer quality products and services at low
costs and with high speed. Organizations have to
compete with unequal partners from abroad. It is well
recognized that developing countries like India are
already behind other countries technologically, in may
areas, although some of them, particularly India, boast
of huge scientific and technical manpower. In addition
to this, if an entrepreneur or industrialist has to spend
a lot of his time, money and energy in dealing with
unpredictable services and in negotiating with the
local bureaucracy, it can have a significant dampening
effect on business.
21. Indian service industry was more comfortable before
economic liberalization.
22. India at present is to some extent at par with the
developed countries in terms of technological
development.
23. Foreign companies are more equipped than
domestic companies to provide quality service in
good time.
24. Official formalities are less cumbersome in almost
all
the countries except India.
25. No other developing country except India claims
that they have highly trained technical manpower.
Directions (26-30)
Self-medication has evolved rapidly over the years to
provide symptomatic relief for minor ailments. One
can safely define responsible self-medication, as the
informed and rational choice of consumers, to treat
themselves and their family members with
appropriate, affordable drugs of acceptable quality.
Responsible self- medication can help prevent and

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ailments that do not require medical consultation.
Moreover, it also reduces the increasing pressure on
medical services for the relief of minor ailments,
especially when financial and human resources are
limited. Worldwide, more and more governments are
accepting the self-medication concept. Self-medication is
a fact of life. With its broad use and social acceptance,
no health policy should ignore self-medication. Rather,
health policy should ask how its momentum can be
leveraged to help achieve its objective.
26. Self-medication can even cure severe and
complicated ailments.
27. The use of self-medication has not been accepted
widely by the Governments and society.
28. Self-medication reduces considerably pressure on
health care system of any country.
29. Only knowledge consumers should be encouraged
to practice self-medication.
30. Comparatively more people adopt self-medication
in the western countries.
Directions (31-35)
Laws governing the cooperative societies are uniform
in all states. These laws give the member of a housing
society the right to nomination during his life time. This
is quite unlike the rule in other property related cases
where nomination comes into force after the demise of
the member. The question then arises that, can the
nominee get full proprietarily rights over a flat merely
because he has been nominated by a deceased member
of the society. Many people are under the wrong
impression that once a nomination form has been filled,
their responsibility is over and that the nominee would
have no problem acquiring the property. And, that the
legal heirs of the member will pose no problem for the
nominee.
31. The law that considers whether a person is a legal
heir or not has some lacunae.
Directions (1-40): Given below is a passage followed
by several inferences. Examine the inferences
separately in the context of the passage, and determine
whether they are true or false. Mark
(a) If the inference is definitely true, i.e. it directly
follows from the statement of facts given.
(b) If the inference is probably true, though not
directly true, in the light of the statement of facts
given.
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32. Nomination to property right need not be made to
legal heirs only.
33. There is a need to educate the people on all aspects
of laws governing the cooperative societies.
34. Cooperative movement had started with cooperative
housing societies.
35. Property related laws are more or less same in all the
states.
Directions (36-40)
India has signed two separate agreements with the USA
and the EC. This brings to a satisfactory conclusion the
Market Access Conciliations in textiles which had been
in progress for sometime. These discussions were held
with a view to facilitating trade in textile products
between India and the USA and EC countries. At
present, more than two-thirds of India’s total textile
exports go to these countries. These agreements which
came into force from 31st Dec, 1994, prior to the
establishment of the WTO, provide very significant
additional market access in these two major markets
(USA and EC) for Indian textile products. In particular,
the agreements are expected to provide a fillip to
handloom and power loom production and exports
which are of high priority because of their direct linkage
with employment generation.
36. India has been treated with bias in the two
agreements mentioned above.
37. Textile products are important constituents of
India’s exports.
38. The WTO was established on 1st Jan, 1995.
39. The agreements may help India in solving its
employment problem.
40. India will have to abide by certain quality
standards to continue getting export orders from
these countries.
(c) If the inference is uncertain, i.e. data is insufficient
to decided whether the inference is true or false.
(d) If the inference is probably false, though not
definitely false, in the light of the statement of facts
given.
(e) If the inference is definitely false, i.e. it cannot
possibly be inferred from the statement of facts
given.
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