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Reasoning

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Statement and Assumptions

Question
11 out of 30
 

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 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.

Ans. E

(i) VALID: Desired outcome. The government would have decided to disinvest the equity with a desire of generating enough amount which would manage the fiscal deficit.

(ii) VALID: Root Cause. The government would have decided to make the shares available in the market with an assumption that there would be enough demand for them in the market.

Statement and Assumptions Flashcard List

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