Question

Given below is a pair of events I and II. You have to decide their nature of relationship. Assume that the given information is correct and final.

I. Inflation rate in India has come down.

II. Reserve Bank of India has increased interest rate.

विकल्प

• I is the main cause and II is the main effect

• I is effect but II is not the main cause

• II is the main cause and I is the main effect

• II is an effect but I is not the main cause

Answer 1

II is the main cause and I is the main effect

Explanation:

Reserve Bank of India changes the interest rates to cater to the rise and fall of inflation rate in the country. Thus, decrease in inflation rate I is a result of increase in interest rates II by the government. Hence II is the main cause and I is the main effect. Option (c) is the correct choice.