A few tiny Indian banks have recently been subjected to Reserve Bank of India restrictions. In India, small private and cooperative banks are unable to compete with larger public sector banks.
A. The cause is stated in Statement I, and the result is stated in Statement II.
B. The cause is statement II, but the result is statement I.
C. Statements I and II are both causes in their own right.
D. Statements I and II are both the result of separate causes.
Answer:B
A few tiny Indian banks have recently been subjected to Reserve Bank of India restrictions. In India, small private and cooperative banks are unable to compete with larger public sector banks.
A. The cause is stated in Statement I, and the result is stated in Statement II. B. The cause is statement II, but the result is statement I. C. Statements I and II are both causes in their own right. D. Statements I and II are both the result of separate causes.
Explanation: Small banks' incapacity to compete with larger banks would not provide client security or adequate service, which is an important issue that the Reserve Bank should investigate. It appears to be a corrective action for the same.