The government has decided to disinvest large chunk of its equity in select public sector undertakings for a better fiscal management.

by AdminX

Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer :

Statement : The government has decided to disinvest large chunk of its equity in select public sector undertakings for a better fiscal management.

Assumptions :
I. The amount generated out of the disinvestment process may reduce substantially the mounting fiscal deficits.
II. There will be enough demand in the market for the shares of these undertakings.

A. Only assumption I is implicit
B. Only assumption II is implicit
C. Either I or II is implicit
D. Neither I nor II is implicit
E. Both I and II are implicit

Answer & Solution

Answer: Option A
Solution:

The fact given in I directly follows from the phrase ‘….. for a better fiscal management’ in the statement. So, I is implicit. However, the public response to the new policy cannot be ascertained. So, II is not implicit.

The government has decided to disinvest large chunk of its equity in select public sector undertakings for a better fiscal management.

Also Read:

 

You may also like

Leave a Comment