Question

    In each of the questions below are given three

    statements followed by two conclusions numbered I and  II. You have to take the given statements to be true even if they seem to be at variance with commonly known facts. Read all the conclusions and then decide which of given conclusions logically follows from the given  statements disregarding commonly known facts. Statements :      Some savings are expenditures All expenditures are incomes. All incomes are assets. Conclusions:                       I. Some savings are incomes. II. Some savings are assets.
    A If only conclusion I follows. Correct Answer Incorrect Answer
    B If only conclusion II follows. Correct Answer Incorrect Answer
    C If either conclusion I or II follows. Correct Answer Incorrect Answer
    D If both conclusion I and II follows. Correct Answer Incorrect Answer

    Solution

    Some savings are expenditures (I) + All expenditures are incomes( A) ⇒ Some savings are incomes(I). Hence, conclusion I follows. Some savings are expenditures (I) + All expenditures are incomes (A) ⇒ Some savings are incomes (I) + All incomes are assets(A) ⇒ Some savings are assets(I). Hence, conclusion II follows.

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