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.
Important Questions from Statements and Inferences
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:
National Expressway-A is the widest expressway and is used by few people. When people find an empty and wide road, people drive at high speed, which leads to accidents.
Inference:
I. All accidents happen due to over speeding.
II. High speed increases the risk of accident.
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.
In this question, two statements I and II have been given. These statements may be independent causes or effects of independent causes or a common cause. One of the statements may be the effect of the other statement. Read both statements and select the correct answer.
I. Country X reduced their crude oil import by 6% in the last 5 years.
II. The automobile industry in Country X has witnessed a sharp decline of 13% in its growth margin this year.
Read the given statements carefully and answer the question.
Knowledge and wisdom go hand in hand. The deeper the knowledge, the greater is the wisdom. Knowledge is awareness. Wisdom is required to tackle complications.
Which of the following is true according to the given statement?Read the given information and decide the appropriate course of action.
NEET examination has laid the following conditions to qualify for appearance in the NEET Exam.
1. Candidate should pass Grade 12 with a minimum of 50% marks in Biology, Physics and Chemistry group.
2. Candidate should have completed 17 years on 31-03-2018.
3. Candidate should have opted for Biology. Physics and Chemistry in Grade 12.
Candidate 1: Ram’s date of birth 14-05-2001, with 40% marks in Mathematics, Physics, Chemistry and Biology.
Candidate 2: Sham’s date of birth is 16-08-2000, with 60% marks in Biology, Physics and Chemistry.
Who is eligible to write the NEET Exam?
