Multiple Choice Questions on I Inflation rate in India has come down II Reserve Bank of India has increased interest rate ........ for Study NOtes Preparation

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Multiple Choice Questions

I Inflation rate in India has come down II Reserve Bank of India has increased interest rate ........

Logial Reasoning (CLAT) Statement - Assumptions
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    I Inflation rate in India has come down

    II Reserve Bank of India has increased interest rate.

    I is the main cause and II is the main effect

    Incorrect Answer

    I is effect but II is not the main cause

    Incorrect Answer

    II is the main cause and I is the main effect

    Correct Answer

    II is an effect but I is not the main cause

    Incorrect Answer
    Explanation:

    If the inflation rate goes down then there would undersupply of the money,
    which could the effect ofincrease in the increase rates,
    in the market which would lead to decrease in the rate of inflation.
    Hence, option 3 is the correct answer.

    By: Amit Kumar
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