Statement: The interest rates on fixed deposits have been lowered.
Inferences:
I. Investors may shift to alternative investment options.
II. Fixed deposits are no longer considered safe.
Statement Analysis
The given statement is: "The interest rates on fixed deposits have been lowered." This indicates a decrease in the returns offered by fixed deposits.
Inference Analysis
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Inference I: Investors may shift to alternative investment options.
When interest rates on fixed deposits fall, the returns become less attractive compared to other potential investments. This situation logically prompts investors to explore alternative avenues like stocks, mutual funds, or other debt instruments that might offer better yields. Therefore, this inference logically follows.
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Inference II: Fixed deposits are no longer considered safe.
A reduction in interest rates affects the *return* on investment, not the fundamental *safety* of the principal amount invested in fixed deposits. Fixed deposits are generally considered low-risk investments regardless of interest rate fluctuations. Lower rates do not inherently make them unsafe. Therefore, this inference does not logically follow from the statement.
Conclusion
Based on the analysis, only the first inference (I) is a logical consequence of the decrease in fixed deposit interest rates. Investors are likely to seek higher returns elsewhere.
The correct option is the one stating that only Inference I follows.
Similar Questions
- Consider the following statement and choose the option that follows.
Statement: The company has decided to switch to renewable energy sources for its operations.
Inferences:
I. The company aims to reduce its carbon footprint.
II. The company's current energy sources are expensive. In the following question, one statement is given followed by certain inferences. Consider the statement to be true even if it seems to contradict commonly known facts. Read the inferences carefully and decide which of them logically follow(s) from the given statement:
Statement:
Humans cannot match the data processing speed of supercomputers, which perform billions of calculations per second.
Inferences:
I. Humans are less efficient then supercomputers in data processing.
II. Humans and supercomputers differ in their capabilities.
Important Questions from Statements and Inferences
“India is a country of rich heritage and cultural diversity.”
Which one of the following facts best supports the claim made in the above sentence?
Yoga has become a very popular exercise today. But before one joins a yoga class, he/she needs to examine the kind of fitness routine that he/she expects. If one is looking for a high energy, fast-paced aerobic workout, a yoga class might not be the best choice. The statement that best supports this paragraph is
An honest king decided to give death penalty to his minister for some mistake. But he gave him two options: "If you tell correctly what I am thinking now, you will be hanged. But if your guess is wrong, you will be killed by throwing to crocodiles". The clever minister made a statement such that the king could not kill him. The statement made by the minister is
Sita is a twelve year old girl. For many years, she has been asking her parents for a pet dog. Her parents told her that a dog would not be happy in an apartment, but they have given her permission to have a bird. Sita has not yet decided what kind of bird she would like to have. The statement that best supports this paragraph is
Directions: A statement is given followed by two inferences I and II. You have to consider the statement to be true even if it seems to be at variance with commonly known facts. You have to decide which of the given inferences, if any, follow from the given statement.
Statement:
Extensive use of pesticides in agricultural production contaminates soil and water, remain in the crops and finally enter food chain, thereby posing threat to the human beings.
Inference:
I. Excessive use of pesticides in agricultural production is not good for people.
II. Excessive use of pesticides in agricultural production can have a bad effect on water.
