Question
In each question a statement is given, followed by two
assumptions, numbered I and II. An assumption is supposed or taken for granted. You have to consider the statement and assumptions and decide which of the assumptions is implicit in the statement. Statement: The city administration has decided to install additional air-quality monitoring stations to better track pollution levels across various regions. Assumptions: I. The existing air-quality monitoring system is insufficient to measure pollution accurately in all areas. II. Air pollution in the city has reached hazardous levels.Solution
The decision to install additional monitoring stations assumes that the current setup is inadequate to track pollution properly → Assumption I is implicit. The statement does not state or imply that pollution is hazardous; it only discusses monitoring, not severity → Assumption II is not implicit. Hence, only Assumption I follows.
The approximate percentage change in a bond’s price for a 1% change in yield to maturity is given by:
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