Cause and Effect

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In each of the following questions, there are two given statements I and II. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following choice correctly depicts the relationship between these two statements.

1.	Statements: I. The Reserve Bank of India (RBI) has put restrictions on few small scale banks in India recently. II. The small scale banks in the private and co-operative sector in India are not in a position to to compete with large scale banks in the public sector.
	A.	Statement I is a cause and statement II is an effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statements I and II are independent causes.
	D.	Both the statements I and II are effects of independent causes.
	E.	Both the statements I and II are effects of some common cause.

		View Answer Though small scale banks are unable to compete with large scale banks yet big banks do not not ensure security and good service to the customers, which is an essential part that is looked by the RBI. It seems to be a remedial step for the same. Hence, option (B) is the correct answer.

2.	Statements: I. After demonetization in India cash is not acceptable at many places. II. Many online sales companies are tying up with banks so that people go cashless.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Statement (I) is the cause and statement (II) is the effect. Although India’s current move to bring cashless economy in function has led to both the statements the direct cause of the II statement is the I statement. Hence, option (A) is the correct answer.

3.	Statements: I. Increase in Foreign Direct Investments(FDI's) is increasing the value of Indian Rupee. II. Foreign banks are setting up their branches and developing best investment plans in South Asia especially in India.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Answer – 2) Statement II is the cause and statement I is its effect. Explanation: Statement I states that due to some Foreign Direct Investments the value of rupee is increasing. And statement II clearly mentions that foreign banks are investing in India (South Asia). The reason that foreign banks are establishing branches is insignificant. Thus, clearly the cause of increasing value of rupee is in statement II.

4.	Statements: I. There is a possibility of snowfall in J&K next month. II. The woollen industry in J&K has increased production by 50%.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Answer – 1) Statement I is the cause and statement II is its effect. Solution: The woollen industry increasing their production is an effect of the upcoming snowfall for next three months. Hence, the possibility of snowfall is the cause due to which the effect of increased production in woollen industry can be observed.

5.	Statements: I. Most of the students passed in Maths in the final examination. II. Most of the students failed in Chemistry in the final examination.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Answer – 4) Both the statement I and II are effects of independent causes. Solution: We can see clearly that both the statements they are talking about different subjects in which students are passed or failed. So, both the statements are effects of independent causes.

6.	Statements: I. The State Transport Corporation (STC) in Delhi has increased numbers of buses between Delhi and Gurgaon. II. The State Transport Corporation (STC) has allowed private bus owners to operate between Delhi and Gurgaon.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Answer – 5) Both the statement I and II are effects of some common causes. Solution: It is clear that in both the statements the STC increased the number of buses between Delhi and Gurgaon so both the statements are effects of some common cause.

7.	Statements: I. Industries and vehicles of some countries are spreading chemicals of more than two billion pounds in the air everyday. II. It is expected to put penalty by International pollution control organisation on countries which cross the maximum emission limits.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Answer – 1) Statement I is the cause and statement II is its effect. Solution: Statement I is the cause as it refers to the level of pollution released by industries and vehicles in the air every day. Statement II is its effect as International pollution control organisation is imposing penalty on the countries which cross the maximum emission limits.

8.	Statements: I. Gurgaon in India is very prone to earthquakes. II. As per suggestion of seismologists, there is a lot of tectonic activity going on in the belt below Aravali mountain range in Gurgaon.
	A.	Statement I is the cause and statement II is its effect.
	B.	Statement II is the cause and statement I is its effect.
	C.	Both the statement I and II are independent causes.
	D.	Both the statement I and II are effects of independent causes.
	E.	Both the statement I and II are effects of some common causes.

		View Answer Answer – 2) Statement II is the cause and statement I is its effect. Solution: Statement II is the cause as according to a report there is a lot of activity is going on at the earth’s crust below Aravali range in Gurgaon. Hence, statement I is its effect as because of the activity Gurgaon is prone to earthquakes.

9.	Statements: I. The petrol and diesel prices in India have remained unchanged for the past few months. II. The prices of crude oil in international market have gone up in the last few months.
	A.	Statement I is the cause and statement II is its effect
	B.	Statement II is the cause and statement I is its effect
	C.	Both the statements I and II are independent causes
	D.	Both the statements I and II are effects of independent causes
	E.	Both the statements I and II are effects of some common cause

		View Answer Answer: Option D Explanation: The stangnant prices of petrol and diesel in India and the high prices of petrol and diesel in the international market must have been due to independent causes.

10.	Statements: I. The Delhi government has recently fixed the fees of schools for professional courses offered by the unaided schools which are much lower than the fees charged last year. II. Last year, the parents of the aspiring students launched a strong protest against the high fees charged by the unaided schools.
	A.	Statement I is the cause and statement II is its effect
	B.	Statement II is the cause and statement I is its effect
	C.	Both the statements I and II are independent causes
	D.	Both the statements I and II are effects of independent causes
	E.	Both the statements I and II are effects of some common cause

		View Answer Answer: Option B Explanation: It is clear that the protest by parents of students against high fees charged by schools led Delhi government to interfere and set the fees at a more affordable level than high level.

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