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Chapter
             Chapter
         13                                          Statement and







                                                         Assumptions










                                  Section                    Level                No. of Questions
                          Concept Applicatior               Very Easy                    20

                          Concept Builder                     Easy                       10
                          Concept Cracker                   Moderate                     15

                          Concept Deviator                   Difficult                   10
            THEORY


            EXAMPLES

            Directions: In each question below is given a statement followed by two assumptions numbered I and II. Consider the
            statement and decide which of the given assumptions is implicit.
            Give answer:
            (a)  if only assumption I is implicit;
            (b)  if only assumption II is implicit;

            (c)  if either I or II is implicit;
            (d)  if neither I nor II is implicit
            (e)  if both I and II are implicit.
            Ex. 1:
            Statement: Bank ‘A’ has announced reduction of half percentage on the interest rate on retail lending with immediate
            effect.

            Assumptions: I. Other banks may also reduce the retail lending rates to be in competition.
                          II. Bank ‘A’ may be able to attract more customers for availing retail loans.
            Solution: To draw the attaintions or attractions of customers Reducing interest rate on loans is surely a good step to
            draw. But the implications of such a policy on other banks cannot be ascertained, as interest rate is not the only criterion
            to lure customers. So, only II is implicit. Hence, the answer is (b).
            Ex. 2:
            Statement: “Use of cell phones and pagers is not allowed inside the auditorium. Please switch off such devices while
            you are inside the auditorium.” ------ A notice.
            Assumptions: I. All those who have such devices will switch them off before they take their seat in the auditorium.
            II.   Generally people do not bring such devices when they come to attend functions in the auditorium.
            Solution:  The notice has clearly mentioned the bringing such device can disturbance in the auditorium. So, I is
            implicit. Further, such notice has been issued keeping in mind that a lot of people come with such devices to the
            auditorium. So, II is not implicit. Hence, the answer is (a).
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