In each questions given below. a statement followed by two assumptions numbered I and II. An assumption is something supposed or taken for granted. You have to consider the statement and the following assumptions, and decide which of the assumptions is implicit in the statement?
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.

Options

A. if only assumption I is implicit.
B. if only assumption II is implicit.
C. if either assumption I or II is implicit.
D. if both assumption I and II are implicit

Answer

D

Explanation

I. Implicit: 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. Implicit: 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.