I. The banks have decided to give advances to the priority sector at the rate of interest at par with the corporate sector.
II. The percentage of bad loans given by the banks to the priority sector is very low compared to corporate sector.

Options

A. Mark answer(a):if statement Iis the cause and statement II is its effect.
B. Mark answer (b): if statement II is the cause and statement I is its effect.
C. Mark answer (c): if both the statements I and II are independent causes.
D. Mark answer (d): if both the statements I and II are effects of independent causes.

Answer

D

Explanation

From the given two statements I and II, it is clear that both statements are contradictory to each other. Statement II says that the priority sector is the better sector for the banks to invest in. Despite this, the banks have decided to increase the rate of interest on the advances to be given to the priority sector. Therefore, both the statements I and II are the effects of independent causes