Direction : Two statements I and II are given. These statement may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statements. Read both the statements and decide which of the following answer choice correctly depicts the relationship between these two statements. Mark answer :

I. The local co-operative credit society has decided to stop giving loans to farmers with immediate effect.
II. A large number of credit society members have withdrawn major part of their deposits from the credit society.

  • 1Statement I is the cause and statement II is its effect
  • 2Statement II is the cause and statement I is its effect
  • 3Both the statements I and II are independent causes
  • 4Both the statements I and II are effects of independent causes
Answer:- 1
Explanation:-

Solution:
Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.

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