The following question comprise of one or more statement. Answer the question on the basis of the given statement(s). Accept the factual assumptions required by the question, even if you believe that the statement is false.
I. Financial Institutions are largely unregulated
II. Today, world is passing through a serious phase of economic crisis
Options
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
Solution
I is the main cause and II is the main effect
Explanation:
Due to the unregulated nature of the financial institutions (cause), the economy is getting affected. As a result, the world is passing through an economic crisis (effect). Thus, I is the main cause and II is the main effect.
