Cause ndash Cement manufacturing companies have increased the price of cement by about fifteen perce...........

Logical Reasoning (RBI) Statement - Conclusions

Cause – Cement manufacturing companies have increased the price of cement by about fifteen percent with immediate effect.

Which of the following is / are possible effects(s) of the above cause?

1) Govt. will direct the cement manufacturing companies to reduce the price increase to five percent.

2) The prices of residential flats and commercial companies will see an upward trend.

3) The construction companies may stop all ongoing construction projects with immediate effect.

This questions was previously asked in

RBI Grade B (9 November 2019)

Only 2

Only 1

Only 3

Only 2 and 3

Either 2 or 3

- Option 1, Only 2:

- A 15% increase in cement prices can lead to higher construction costs.

- This increase can result in higher prices for residential flats and commercial properties.

- This is the correct answer.

- Option 2, Only 1:

- The government might intervene, but it is not guaranteed they will direct the price reduction to only 5%.

- Option 3, Only 3:

- It is unlikely that all construction projects would stop entirely due to the increase.

- Option 4, Only 2 and 3:

- While property prices might rise, it's improbable that all construction halts.

- Option 5, Either 2 or 3:

- Property prices rising is more certain than all construction stopping.

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