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Direction Two statements I and II are given These statement may...

This question belongs to Competitive Reasoning Cause And Effect Test
Cause and Effect Test
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Direction : Two statements I and II are given. These statement 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 answer choice correctly depicts the relationship between these two statements. Mark answer :

I. The local co-operative credit society has decided to stop giving loans to farmers with immediate effect.
II. A large number of credit society members have withdrawn major part of their deposits from the credit society.

Answer & Solution
Correct Answer: Option B
Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.
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