• Reasoning Ability - Verbal & Critical Reasoning
Question

Statement: The Government has decided to levy 2 percent on the tax amount payable for funding drought relief programmes.

Assumptions:

I. The Government does not have sufficient money to fund drought relief programmes.

II. The amount collected by way of surcharge may be adequate to fund these drought relief programmes.

  • 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
Solution

Answer: Option E

Explanation:

Since a surcharge has been levied to fund drought relief programmes, it follows that the Government does not have sufficient money for the same. So, I is implicit. Besides, the percentage of surcharge must have been decided after studying the expected inflow in relation to amount of funds required. So, II is also implicit.

Answer: Option E

Explanation:

Since a surcharge has been levied to fund drought relief programmes, it follows that the Government does not have sufficient money for the same. So, I is implicit. Besides, the percentage of surcharge must have been decided after studying the expected inflow in relation to amount of funds required. So, II is also implicit.
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