Statements & Assumptions, Arguments Quiz for SBI PO 2017 - Set 1

Hello and welcome to exampundit. Here is a set of Statement & Assumptions & Arguments and Cause and Effect on Logical Reasoning.

1. Player X, one of the best tennis doubles players of all time and certainly India’s best alongside Player Y, has been dropped for the tie against Chinese Taipei.

Which of the following may be a probable cause for taking the above step?
1) He has fallen victim to a battle with the establishment.
2) Player Y is not available for selection.
3) There is lack of transparency and accountability in selection.
4) The form of Player Y has of late been on the wane.
5) None of these

2. The rupee has been under considerable stress.

Which of the following can be a possible effect of the above cause?

1) The rupee has been depreciated.
 2) The RBI has decided to release cash into the market.
3) The RBI has clamped down on rupee forward contract transactions.
4) There will be lesser shocks from the overseas market.
5) None of these

3. Prime Minister Narendra Modi may slash the Cabinet Committee on Investment’s (CCI) threshold limit by half to Rs. 500 crore to get more stalled projects moving again as the government’s term nears its end.

Which of the following is not in line with the Prime Minister’s statement?

1) A committee was set up in January 2015 to revive projects that have got stuck due to various reasons.
2) Industrial growth slumped to a negative 0.2% in the first eight months of 2015-16.
3) The PM is committed to reviving India’s growth impulses till his last day in office.
4) As of now, CCI’s mandate allows it to push for timebound clearances to investments of Rs. 1,000 crore or more.
5) None of these

4. Beverage and snacks maker PepsiCo India is pushing to become more aggressive in the market as it battles Coca-Cola in soft drinks and ITC and Parle in foods.

Which of the following can be a part of possible fallout of the above situation?

1) The company is battling growth slowing across foods and beverages, fluctuating weather conditions that make market behaviour unpredictable and consumers turning to healthier foods and drinks.
2) The foods business is getting increasingly fragmented.
3) The company has made sweeping changes in its senior leadership structure.
4) Its top eight brands generate a business of about Rs. 1,000 crore each.
5) None of these

5. In its mid-quarter policy review on 18 December, RBI kept its policy rate unchanged at 7.75%, hoping for a drop in the inflation rate because of an expected fall in food prices.

Which of the following statements substantiates the views expressed in the above statement?

1) The Consumer Price Index (CPI)-based inflation has come down just because of the softening of vegetable prices while prices of many other components of food inflation are still hardening.
2) Factory output contracted for a second straight month in November, by 2.1%, because of a sharp decline in production of consumer durables.
3) Since he took charge in September, RBI governor Raghuram Rajan has raised the key policy rate twice, from 7.25% to 7.75%.
4) State governments have done away with middlemen in the sale of fruits and vegetables by amending the Agricultural Produce Market Committee Act.
5) None of these


6. Gold investors lost heavily in 2013.

Which of the following inferences cannot be drawn from the above statement? (An inference is something which is not directly stated but can be inferred from the given facts.)

1) Great myths had been woven around gold.
2) Exchange-traded funds made investment in gold too easy.
3) The investors forgot that what goes up must come down.
4) People put only their hard-earned money into the metal.
5) None of these

7. The home branch concept has become irrelevant in banking.

Which of the following can be a probable cause(s) of the above phenomenon?

(A) The customers of the bank have become too busy, hopping from one city to another. 
(B) Banks are now planning to introduce account portability.
(C) Most bank branches are now on core banking solutions, through which all account holder information is maintained in a centralised database.
1) Only C
2) Only B and C
3) Only B
4) All the three
5) Only A and C

8. Car X failed to enthuse consumers. One common explanation is that the car was promoted for its low price rather than its features
Which of the following can be a course(s) of action to tackle the situation?

(A) A revamped version of the car should be launched.
(B) A fuel-efficient version of the car should be launched.
(C) A variant of the car should be launched with a power steering.

1) Only B
2) Only A
3) Only A and B
4) Only B and C
5) All the three

9. Party X lost the election due to anti-incumbency.

Which of the following substantially weakens the argument given in the above statement?

1) People were unhappy with the party in power.
2) There are instances of chief ministers enjoying power for as long as 15 years.
3) The default setting for governance involved bypassing substantive resolution of people’s issues in favour of calculated exercises in political expediency aimed at securing another innings in power. 
4) It is difficult to honour everyone’s wishes once you are in power. 
5) None of these

10. “Just as at present, I will take up whatever responsibility is given to me by my party in the future and do it diligently to the best of my abilities.” — Mr X, a politician

Which of the following assumptions is implicit in the above statement? (An assumption is something supposed or taken for granted.)

1) Mr X is the PM nominee for the next elections.
2) Mr X may become the prime minister of the country.
3) Mr X may not become the prime minister of the country.
4) Either 2) or 3)
5) Mr X is the prime minister of the country.

Answers & Explanations:

1. 1; Such battles are nothing new in the arena of sports and have ruined many a career.

2. 3; Forward trading is a known culprit in bringing imbalance in the markets.

3. 5; Choice 1 is in line with the statement because it seems to be a reference to the CCI mentioned in the statement. 2 is a likely outcome of projects getting stalled. 3 is implied by the decision taken even as “the government’s term nears its end”. 4 is in line on the basis of simple calculation.

4. 3; Change in leadership structure may be a part of the aggressive strategy.

5. 4; Doing away with middlemen reduces costs and is expected to bring inflation down.

6. 4; If “only hard-earned money” had gone into the purchase of gold, the market would have brought steady gains. Generally, it is speculative money that leads to bubbles and their subsequent busting.

7. 1; “Centralised databanks” have led to anywhere banking, thus making the concept of home branch redundant.

8. 5; All the three highlight its features and are therefore proper corrective actions.

9. 2; If people can stay in the saddle for 15 long years, it is proof that they have been elected on a pro-incumbency plank.

10. 2; Since Mr X will “take up whatever responsibility is given” to him, he assumes that he may become the prime minister of the country.



Team ExamPundit