| Direction: In each question below is given a statement followed by two or three courses of action numbered I, II and III. You have to assume everything in the statement to be true and on the basis of the information given in the statement decide which of the suggested courses of action logically follow(s) for pursuing. |
| Statement: |
| It is necessary to adopt suitable measures to prevent repetition of bad debts by learning from the past experiences of mounting non-performing assets of banks. |
| Courses of action: |
| I. Before granting loan to customers their eligibility for loan should be evaluated strictly. |
| II. To ensure the payment of instalments of loan, the work, for which loan was granted, should be supervised minutely on regular basis. |
A) None follow
B) Both follow
C) Only I follows
D) Only II follows
E) Either I or II follows
Correct Answer: B
Solution :
Explanation Option [b] is correct. To ensure that debts taken are repaid promptly, the customers requirements and future prospects ought to be studied and their work constantly checked. Thus, both the courses follow.
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