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Question

Since the last one year, after a 125 basis point reduction in repo rate by the Reserve Bank of India, banking institutions have been making a demand to reduce interest rates on small saving schemes. Finally, the government announced yesterday a reduction in interest rates on small saving schemes to bring them on par with fixed deposit interest rates.

Which one of the following statements can be inferred from the given passage?

The correct answer is
The government sometimes takes into consideration the demands of banking institutions before reducing the interest rates on small saving schemes

Inference from Small Savings Rate Passage

The passage describes a sequence of events: a reduction in the repo rate by the Reserve Bank of India (RBI), subsequent demands from banking institutions for lower interest rates on small saving schemes, and finally, the government's decision to reduce these rates to align them with fixed deposit rates.

Analyzing Option Statements

  • Option 1: This statement claims that *whenever* the RBI reduces the repo rate, small saving rates are reduced. The passage only provides one instance, not a consistent pattern. Therefore, this broad generalization cannot be inferred.
  • Option 2: This statement suggests small saving scheme interest rates are *always* maintained at par with fixed deposit rates. The passage states the government announced a reduction *to bring them on par*, implying they were not previously at par. The word "always" makes this inference incorrect.
  • Option 3: This statement posits that the government *sometimes* considers banking institutions' demands before reducing small saving scheme rates. The passage explicitly mentions that banking institutions made demands, and *finally*, the government made the reduction. This strongly suggests their demands were taken into account. The qualifier "sometimes" is appropriate as we are inferring from a single event.
  • Option 4: This statement asserts that a reduction in small saving rates follows *only after* a repo rate reduction. While the passage shows this sequence, it doesn't exclude other factors (like banking demands) or state that a repo rate cut is the *sole* prerequisite. The government's action appears influenced by multiple factors mentioned.

Conclusion on Inference

Based on the passage, the most logical inference is that the government takes banking institutions' demands into consideration, as evidenced by the sequence of events described. Therefore, Option 3 is the most accurate inference.

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Important Questions from Inference

  1. Relatedness Hypothesis is the idea that many similarities between languages indicate that they ______.
  2. A smart city integrates all modes of transport, uses clean energy and promotes sustainable use of resources. It also uses technology to ensure safety and security of the city, something which critics argue, will lead to a surveillance state.
    Which of the following can be logically inferred from the above paragraph?
    (i) All smart cities encourage the formation of surveillance states.
    (ii) Surveillance is an integral part of a smart city.
    (iii) Sustainability and surveillance go hand in hand in a smart city.
    (iv) There is a perception that smart cities promote surveillance. 

  3. Which of the following options is the closest in meaning to the sentence below? 

    "As a woman, I have no country."

  4. Thousands of years ago, some people began dairy farming. This coincided with a number of mutations in a particular gene that resulted in these people developing the ability to digest dairy milk. 
    Based on the given passage, which of the following can be inferred?

  5. Wanted Temporary, Part-time persons for the post of Field Interviewer to conduct personal interviews to collect and collate economic data. Requirements: High School-pass, must be available for Day, Evening and Saturday work. Transportation paid, expenses reimbursed. 

    Which one of the following is the best inference from the above advertisement?

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