Asked in PMC Practice Test 33 (2021) 2021Moderate

Dependent causes/ Independent causes: Statement: The state bank of Pakistan has recently put restrictions on few small banks in the country. The small banks in the private and co-operative sector in Pakistan are not in a position to withstand the competitions of the bigger in the public sector.

Correct answer: B. Statement II is the cause and statement I is its effect

  • A. Statement I is the cause and statement II is its effect
  • B. Statement II is the cause and statement I is its effect
  • C. Both the statements I and II are independent causes
  • D. Both the statements I and II are effects of independent causes

Explanation

Statement 2 is the cause and statement 1 is the effect. The small banks' inability to withstand competition from larger public sector banks has led to the state imposing restrictions on them.

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About Cause and Effect

Cause and effect questions examine whether one event produces another, whether both arise from a common factor, or whether their connection is only coincidental. They involve identifying preceding and resulting events, separating correlation from causation, and judging whether the stated evidence supports a direct, possible or unlikely relationship.

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