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In each of these questions, two Statements I and II are given. These may have a cause and effect relationship or may have independent causes or be the effects of independent causes.

Question 141

Statements
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 A large number of credit society members have withdrawn major parts of their deposits from the credit society.

Solution

Since most of the deposits are withdrawn by members of the society , there will be shortage of cash deposits , which is why credit society has decided to stop giving loans to farmers with immediate effect.
So, the answer would be option b)if Statement II is the cause and Statement I is its effect.

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