Inference From Passage
The interest rates in the institutional market have come down significantly and at present are in the range of 5.25 to 5.75 percent per annum. However, interest rates on small savings schemes such as the Post Office Saving Schemes, RBI Relief Bonds, Provident Fund and PPF continue to be administered at high levels in relation to market rates. These schemes also have a variety of tax incentives, which result in much higher post-tax returns and on the flip side more liability for the government. It is ironic that it is predominantly the urban population (and more often people in the high tax bracket), which is benefiting from high rates and tax benefits. The size of small savings has assumed a significant proportion of financial savings in the country. This has also increased dramatically the debt service burden of both Central and State Governments.
The Government administered savings schemes in the long run drain out exchequer’s money.
A If you think the inference is ‘definitely true’;
B If you think the inference is ‘probably true’ though not definitely true in the light of the facts given;
C If the data given is inadequate i.e., from the fact given you cannot say whether the inference is likely to be true or false;
D If you think the inference is ‘probably false’ though not definitely false in the light of facts given; and
E If the inference is ‘definitely false’ i.e., it contradicts the given facts.