Advertisement Remove all ads

Which One of the Following, If True, Casts the Most Serious Doubt on the Accuracy of the Industanian Politicians’ Justification for the Proposed Legislation? - Logical Reasoning

MCQ

Read the following short passages and choose the best answers to the questions following the passage.

Natural Gas Production Units in Hindustan have recently been acquired in substantial. numbers by investors from abroad. Industanian politicians are proposing legislative action to stop such investment, justifying the proposal by arguing that foreign investors, opportunistically exploiting a recent fall in the value of the Industanian currency, were able to buy Industanian assets at less than their true value.

Which one of the following, if true, casts the most serious doubt on the accuracy of the Industanian politicians’ justification for the proposed legislation?

Options

  • In Bangania, a country broadly similar to Industan, the share of Natural Gas Production Units that is foreign-controlled is 60 percent higher than it is in Industan.

  • The true value of investment is determined by the value of the profits from it, and the low value of the Industanian currency has depressed the value of any profits earned by foreign investors from Industanian assets.

  • The Industrial government originally welcomed the fall in the value of Industanian currency because the fall made Industanian exports more competitive in international markets.

  • Foreign investors who acquired Industanian production units generally did so with no intention of keeping and running those units over the long term.

Advertisement Remove all ads

Solution

The true value of investment is determined by the value of the profits from it, and the low value of the Industanian currency has depressed the value of any profits earned by foreign investors from Industanian assets.

Explanation:

The politicians argued that foreign investors were profiting from the devaluation of Indus titanian assets in the wake of fall in the industrial currency. So, if the true value of the investment is determined by the value of profits and the value of assets falls in the wake of the devaluation of the currency, it costs the most serious doubt on the Indus titanian politicians' argument.   

Concept: Critical Reasoning (Entrance Exam)
  Is there an error in this question or solution?
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×