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Statement: Let us increase the taxes to cover the deficit.
Assumptions:
The present taxes are very low.
Deficit in a budget is not desirable.
If the taxes are not increased, the deficit cannot be met.

Only I and II are implicit
Only II and III are implicit
Only I and III are implicit
All are implicit
Explanation:

Answer: Option B
Explanation:
Clearly, the statement shows that the present taxes are not sufficient to meet the deficit but they may still be high. So, I is not implicit. Since the statement talks of covering the deficit, so II is implicit. Also, the taxes are increased to meet the deficit. So, III is also implicit.
Additional Questions

Statement: "We must introduce objective type tests to improve our examinations for admission to MBA." - The Chairman of the Admission Committee tells the Committee.
Assumptions:
The admission at present is directly through the interview.
The Admission Committee is desirous of improving the admission examinations.
The Chairman himself is an MBA.

Answer

Statement: Use X brand shoes. These are durable and available in all sizes. - An advertisement in the newspaper A.
Assumptions:
Normally people like durable shoes.
Very few people read advertisement in a newspaper.
Very few people read the newspaper A.

Answer

Statement: The State Government has unilaterally increased by five percent octroi on all commodities entering into the state without seeking approval of the Central Government.
Assumptions:
The State Government may be able to implement its decision.
The Central Government may agree to support the State Governments decision.
The State Government may be able to earn considerable amount through the additional octroi.

Answer

Statement: In the recently held All India Commerce Conference the session on Management of Service Sector in India surprisingly attracted large number of participants and also received a very good media coverage in the leading newspapers.
Assumptions:
People were not expecting such an encouraging response for service sector.
Service sector is not managed properly in India.
Media is always very positive towards service sector.

Answer

Statement: "If you are intelligent, we are the right people for improving your performance." - An advertisement of a coaching institute.
Assumptions:
Brilliant students prefer to join coaching classes.
Coaching classes help the students to improve their performance.
No other institute provides such coaching.

Answer

Statement: The Reserve Bank of India has directed the banks to refuse fresh loans to major defaulters.
Assumptions:
The banks may still give loans to the defaulters.
The defaulters may repay the earlier loan to get fresh loan.
The banks may recover the bad loans through such harsh measures.

Answer

Statement: We must be prepared to face any eventuality and all the assignments must be completed as per their schedule - Director tells the Faculty members.
Assumptions:
There is possibility of any serious eventuality.
Dates are fixed for all the assignments.
Faculty members are supposed to complete all the assignments.

Answer

Statement: An advertisement of Bank X - "Want to open a bank account! Just dial our home service and we will come at your doorsteps."
Assumptions:
No other bank makes available service at the doorstep of the customer.
People may choose Bank X for their financial transactions.
Nowadays banking has become very competitive.

Answer

Statement: "Do not lean out of the moving train." - A warning in the railway compartment.
Assumptions:
Such warnings will have some effect.
Leaning out of a moving train is dangerous.
It is the duty of railway authorities to take care of passengers safety.

Answer

Statement: Tender specification will not be issued to the firms where there is 25% or more default in supplies against earlier purchase orders placed on them - Condition of a Company X inviting tenders for the purchase of material.
Assumptions:
The Company X will be watching the quality of performance of its suppliers.
This time the firms should keep the percentage of default as less as possible.
The Company X expects quality and professional approach from its suppliers.

Answer
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