Inference From Passage
It is generally accepted that if the monsoon is poor in any given year, it will have a significantly negative impact on the lives of millions. Some lives, such as those of the farmers, are affected directly because of poor crop yield; others are affected indirectly as the economic growth slows down. Similarly, the years with good monsoon bring smile and prosperity to the lives of many. For instance, India recorded a sharp jump in its rate of growth after years of good performance in the recent years. This unfortunate cycle affects the lives of millions of poor and hapless. But it need not be this way. In the jargon of financial economics, monsoon risk is a diversifiable risk. In other words, it is an insurance risk. Though one might wonder who will provide the insurance against poor monsoons if everyone is adversely affected by poor monsoon? The answer is – the international investor.
All over the world diversifiable risks are always covered by the insurance companies.
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.