Question

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

Answer 1

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.