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    Question

    In the question given below, a passage is given

    followed by statements which may or may not be inferred from the passage. Select the correct combination of statements that can be inferred. Passage: Many small businesses are struggling to survive after the economic slowdown. While the government has introduced several loan schemes to support them, business owners complain that the application procedures are complicated and time-consuming. As a result, many eligible enterprises are unable to access the financial assistance they need. Economists argue that simplifying the process could help revive a significant portion of the sector. Statements: 1. The current loan application procedures discourage some small businesses from applying. 2. Simplifying loan procedures could help small enterprises recover. 3. The government intends to complicate the application process so that fewer businesses can obtain loans.
    A Only 1 Correct Answer Incorrect Answer
    B Only 1 and 2 Correct Answer Incorrect Answer
    C Only 2 and 3 Correct Answer Incorrect Answer
    D All 1, 2 and 3 Correct Answer Incorrect Answer

    Solution

    Statement 1 follows: The passage says that procedures are complicated and many eligible enterprises are unable to access assistance, which clearly implies discouragement. Statement 2 follows: Economists argue that simplifying the process could help revive the sector → this is directly inferable. Statement 3 does NOT follow: Nowhere does the passage suggest that the government intends to complicate the process; this is an assumption beyond the given text. Thus, only statements 1 and 2 can be inferred.

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