Given below is a statement followed by three conclusions I, II and III. Assuming the statement to be true, decide which of the conclusion logically follow(s)? Statement: The rise in inflation is likely to increase interest rates. Conclusions : (I) There will be decline in the number of borrowers. (II) There will be more deposits in bank. (III) The rate of unemployment will fall.
Statement Analysis
The core statement posits a direct relationship: an increase in inflation leads to an anticipated rise in interest rates.
Premise: Rising Inflation => Increased Interest Rates.
We need to determine the logical consequences of higher interest rates based on standard economic principles.
Conclusion I Analysis
Higher interest rates increase the cost of borrowing money. When borrowing becomes more expensive, individuals and businesses are less likely to take out loans.
Therefore, a decline in the number of borrowers logically follows from an increase in interest rates.
Conclusion (I) logically follows.
Conclusion II Analysis
Increased interest rates make saving money more attractive. Banks offer higher returns (interest) on deposits when overall interest rates are high.
This provides a greater incentive for people to save rather than spend, leading to an increase in the amount of money deposited in banks.
Conclusion (II) logically follows.
Conclusion III Analysis
Rising interest rates often serve to cool down an economy, potentially slowing down business investment and consumer spending. This slowdown can lead to reduced demand for labor.
Consequently, an increase in interest rates is more likely to lead to stable or potentially rising unemployment, not a fall. The relationship is complex, but a fall in unemployment is not a direct or typical consequence of rising interest rates aimed at controlling inflation.
Conclusion (III) does not logically follow.
Final Conclusion
Based on the analysis, Conclusions (I) and (II) logically follow from the given statement, while Conclusion (III) does not.
Important Questions from Cause and Effect
Direction: In the following question two statements numbered I and II are given. There may be cause and effect relationship between the two statements. These two statements may be effects of the same cause or independent causes. These statements may be independent causes without having any relationship. Give answer.
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 causes among teenagers is on increase.Direction: In the following question two statements numbered I and II are given. There may be cause and effect relationship between the two statements. These two statements may be effects of the same cause or independent causes. These statements may be independent causes without having any relationship. Give answer.
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 authorities have been unable to nab the culprits who are committing crimes against women.- Read the given statements and decide which of the conclusions given in the options logically follow from the statements.
Statements:
I. The police has increased vigilance during late night hours.
II. Incidents of petty crimes have reduced in the late night hours. - There are 20 people in a party. If every person shakes hand with every other person, then what will be the total number of handshakes?
- Select the combination of mathematical signs that when sequentially placed in the blanks of the given equation will balance the equation. $12 \_ 3 \_ 12 \_ 24$
