1.  Statements :

I. The local Co-operative credit society has decided to stop giving loans to farmers with immediate effect.

II. A large number of credit society members have withdrawn major part of their deposits from the credit society.



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
E. Both the statements I and II are effects of some common cause

Answer: Option B

Explanation:

Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.