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Discussion :: Statement and Assumption

  1. Statement: Shalini made an application to the bank for a loan of Rs. 1,80,000 by mortgaging her house to the bank and promised to repay it within five years.

    Assumptions:

    1. The bank has a practice of granting loans for Rs. 1,00,000 and above.
    2. The bank accepts house as collateral security against such loans.

  2. 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

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    Answer : Option E

    Explanation :

    The fact that Shalini has applied for a loan of Rs. 1,80,000 implies that the bank can grant a loan above Rs. 1,00,000. So, I is implicit. II also follows directly from the statement and so is implicit.


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