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Directions: Study the following questions carefully and choose the right answer:
Important for :
1
Statement : Footpaths of a busy road are crowded with vendors selling cheap items.

Courses of action :

I.  The help of police should be sought to drive them away.

II. Some space should be provided to them where they can earn their bread without blocking footpaths.       
» Explain it
E
Crowding on footpaths is a great inconvenience for walkers. So, stern action needs to be taken to remove the vendors. But at the same time these people ought to be provided alternative means of livelihood. So, both the courses follow.
2
Statement:  A very large number of students have failed in the final high school examination due to faulty questions in one of the subjects.

Courses of action:

I. All the students who have failed in the subject should be allowed to take supplementary examination.

II. All those who are responsible for the error should be suspended and an enquiry should be initiated to find out the facts.
» Explain it
E
There being faulty questions in the examination paper is a blunder on the part of school management and students should not be made to suffer on account of this. Thus, a re-test should be organised for the students and those responsible for the error be penalised to prevent reoccurrence of such mistake in the future. Hence, both the courses follow.
3
Statement: It is necessary to adopt suitable measures to prevent repetition of bad debts by learning from the past experiences of mounting non-performing assets of banks.

Courses of action:
I. Before granting loan to customers their eligibility for loan should be evaluated strictly.

II. To ensure the payment of instalments of loan, the work, for which loan was granted, should be supervised minutely on regular basis.  
» Explain it
E
To ensure that debts taken are repaid promptly, the customers’ requirements and future prospects ought to be studied and their work constantly checked. Thus, both the courses follow.
4
Statement: The sale of a particular product has gone down considerably causing great concern to the company.

Courses of action:

I. The company should make a proper study of rival products in the market.

II. The price of the product should be reduced and quality improved.         
» Explain it
A
Clearly, a study of rival products in the market will help assess the cause for the lowering down of sales and then a suitable action can be taken. Thus, only I follow.
5
Statement: Exporters in the capital are alleging that commercial banks are violating a Reserve Bank of India directive to operate a post shipment export credit denominated in foreign currency at international rates from January this year.

Courses of action:

I. The officers concerned in the commercial banks are to be suspended.

II. The RBI should be asked to stop giving such directives to commercial banks.       
» Explain it
D
The statement mentions that the commercial banks violate a directive issued by the RBI. The remedy is only to make the banks implement the Act. So, none of the courses follows.