1000+ Logical Reasoning Questions & Answers Pdf for CAT, CLAT - 1

Question: 1

The interest rates in the institutional market have come down significantly and at present are in the range of 5.25 to 5.75 percent per annum. However, interest rates on small savings schemes such as the Post Office Saving Scheme, RBI Relief Bonds, Provident Fund and PPF continue to be administered at high levels in relation to market rates. These schemes also have a variety of tax incentives, which result in much higher post tax returns and on the flip side more liability for the government. It is ironic that it is predominantly the urban population (and more often people in the high tax bracket), which is benefiting from high rates and tax benefits. The size of small savings has assumed a significant proportion of financial savings in the country. This has also increased dramatically the debt service burden of both Central and State Government.
Returns on different Government administered savings schemes are higher for tax-paying individuals.

(A) Data inadequate

(B) Definitely true

(C) Probably false

(D) Probably true

(E) Definitely false

Question: 2

The Government administered savings schemes in the long run drain out exchequer’s money.

(A) Probably true

(B) Probably false

(C) Definitely true

(D) Definitely false

(E) Data inadequate

Question: 3

The interest rate in the institutional market till five years ago was more than 8 percent.

(A) Definitely true

(B) Probably true

(C) Data inadequate

(D) Probably false

(E) Definitely false

Question: 4

The interest rates on small savings have decreased considerably during the last few years.

(A) Definitely false

(B) Definitely true

(C) Probably false

(D) Probably true

(E) Data inadequate

Question: 5

Tax incentives are provided to benefit all sections of the society.

(A) Probably false

(B) Definitely true

(C) Definitely false

(D) Data inadequate

(E) Probably true