Statement: The Bank of England's move to auction 25 metric tons of gold drew plenty of bidders looking for a bargain, but was criticized by major gold producers worldwide. Conclusions: I. The Bank of England should not auction gold which it possesses to keep steady international prices of gold. II. Bidders should quote higher gold prices to retain present value of gold in the international markets. MCQ with Answer and Explanation

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Statement: The Bank of England's move to auction 25 metric tons of gold drew plenty of bidders looking for a bargain, but was criticized by major gold producers worldwide.
Conclusions:
I. The Bank of England should not auction gold which it possesses to keep steady international prices of gold.
II. Bidders should quote higher gold prices to retain present value of gold in the international markets.

A. Only conclusion II follows

B. Both conclusions I and II follow

C. Only conclusion I follows

D. Neither conclusion I nor II follows

Answer: Option D

Solution (By JKExamLibrary)

Neither conclusion follows. The statement merely reports the auction and the criticism; it does not logically lead to a 'should' statement about whether the auction should happen (I). Similarly, advice to bidders (II) is not a logical conclusion from the given information.

This question belongs to: Reasoning Statement and Conclusion

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Question #1

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Statement: The government run company had asked its employees to declare their income and assets but it has been strongly resisted by employees union and no employee is going to declare his income.
Conclusions:
I. The employees of this company do not seem to have any additional undisclosed income besides their salary.
II. The employee's union wants all senior officers to declare their income first.

A. Neither conclusion I nor II follows

B. Both conclusions I and II follow

C. Only conclusion I follows

D. Only conclusion II follows

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Correct Answer: Option C

Explanation:
Conclusion I follows because strong resistance to declaring income may indicate they have nothing to hide and are protesting on principle. Conclusion II is not mentioned in the statement.

This question belongs to: Reasoning Statement and Conclusion

Question #2

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Statements:
1. All actors are handsome.
2. John is handsome.
Conclusions:
I. John is an actor.
II. John is not an actor.
Which conclusion(s) logically follow?

A. Either I or II follows

B. Only conclusion I follows

C. Neither I nor II follows

D. Only conclusion II follows

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Correct Answer: Option A

Explanation:
John is in the 'handsome' category, but we do not know if he is inside the 'actor' sub-category or outside it. Therefore, neither is definite. However, since he must either be an actor or not an actor, the 'either/or' condition applies.

This question belongs to: Reasoning Statement and Conclusion

Question #3

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Statement: The flowers in the garden are blooming. Conclusions: I. It is spring season. II. The garden looks beautiful.

A. Only I follows

B. Only II follows

C. Neither I nor II follows

D. Both I and II follow

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Correct Answer: Option B

Explanation:
Blooming doesn't guarantee it's spring (could be other season). II is subjective but generally true; blooming flowers make it look beautiful. So II follows.

This question belongs to: Reasoning Statement and Conclusion

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