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: Shalini made an application to the bank for a loan of Rs. 1,80,000 by mortgaging her house to the bank and promised to repay it within five years.
Assumptions: I. The bank has a practice of granting loans for Rs. 1,00,000 and above. II. The bank accepts house as collateral security against such loans.

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

Both are implicit . When someone apply for a loan, it is assumed that he knows the amount upto which bank grants loan and type of mortgage bank accepts