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In Support of Which of the Following Does the Author Mentions “That an Overleveraged Corporate Sector that is in No Mood to Invest”: - Logical Reasoning

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MCQ

Read the following passage and answer the question that follows:

As infrastructure investments (as a proportion of GDP) have fallen sharply over the twelfth five year plan period (2013-17), attempts to revive the investment cycle are welcome. However, considering that infrastructure investment over the past six years adds up to Rs 51.2 lakh crore, doubling this over the next six years is a tall order. These are not normal times. The economy has slowed down considerably. The financial system remains choked. Add to that an overleveraged corporate sector that is in no mood to invest, and achieving these targets looks increasingly difficult. And a broad-based pick-up in growth is unlikely in the near term. Reviving the investment cycle requires more than just ambitious targets.

In support of which of the following does the author mentions “that an overleveraged corporate sector that is in no mood to invest”: 

Options

  • The corporate sector has been overly exploited by governments and the vested interests of the political circles.

  • Investment by corporates can have a positive impact on providing the much needed succor to the financial system.

  • Investment by corporates is the only way to improve the economy of a country.

  • The corporate sector has been completely sidelined by the government and so, the economy has been affected.

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Solution

Investment by corporates can have a positive impact on providing the much-needed succor to the financial system.

Explanation:

Investment by corporates can have a positive impact on providing the much-needed succor to the financial system mentions exactly the same thing as the quoted sentence in the given question. We don’t know whether investment by corporates is the only way to improve the economy. There can be other ways too.

Hence, Investment by corporates is the only way to improve the economy of a country is wrong.

The corporate sector has been completely sidelined by the government and so, the economy has been affected is wrong because the passage does not mention whether the corporate sector has been completely sidelined by the government.

The corporate sector has been overly exploited by governments and the vested interests of the political circles are again out of scope and cannot be inferred in the light of the passage.

Concept: Statement and Assumption (Entrance Exam)
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