Consider the following statement and choose the option that follows. Statement: The bank has introduced green bonds to fund eco-friendly projects. Conclusions: I. The bank is supporting sustainable development. II. Green bonds are more profitable than regular bonds.
- (a)Only I follow
- (b)Only II follow
- (c)Both follow
- (d)Neither follow
Answer
Why
Correct — A.
Rule: a conclusion follows only if the statement itself supports it, with no outside facts added.
Green bonds here fund eco-friendly projects. A bank funding such projects is supporting sustainable development, so I follows.
The statement says nothing about returns or about regular bonds. II adds a profit comparison from outside, so it does not follow → option (a).
Why the others are wrong
- (b)Only II follow — II compares the profit of green bonds with regular bonds, and the statement gives no figure or comparison. This option also drops I, which the eco-friendly funding supports.
- (c)Both follow — II fails: nothing in the statement speaks to profitability. Both can follow only if the statement supports each conclusion, and it supports I alone.
- (d)Neither follow — 'Neither follow' throws away conclusion I, which the statement supports. Funding eco-friendly projects is a direct form of supporting sustainable development.
Concept
In a statement-and-conclusion item you accept the statement as given and ask of each conclusion: does the statement support it without importing facts?
A conclusion that restates the statement's purpose in broader words follows. Funding eco-friendly projects is supporting sustainable development, said another way.
A conclusion that adds a comparison, number or motive the statement never mentions does not follow, however plausible it sounds.
Conclusion II sounds like finance knowledge, but the item tests only what the statement supports. Whether green bonds really pay more or less is outside the question.
Key facts
- A conclusion must be supported by the statement alone, not by general knowledge.
- Supporting sustainable development restates the purpose of funding eco-friendly projects.
- A comparison with something the statement never mentions, such as regular bonds, does not follow.
Study next
Common traps
- Accepting a conclusion because it sounds true in real life, such as a claim about bond returns
- Rejecting a conclusion because it does not repeat the statement's exact words, when it restates the same idea
21 Sep 2025, 16:00, Reasoning Q.3 works the same way: a company switching to renewable energy supports 'aims to reduce its carbon footprint' but not a claim that its current energy is expensive (keyed Only I).
Related PYQs
No directly related past PYQ was found.