CampusFin

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 A large number of credit society members have withdrawn major part of their deposits from the credit society.

Review the verified answer and explanation for this DemoPaper-Pakistan past-paper question on CampusFin.

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 A large number of credit society members have withdrawn major part of their deposits from the credit society. Answer: Statement II is the cause and statement I is its effect

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

Question context

This question is part of 🧩 Logical Reasoning within the broader 🧠 Aptitude Mastery subject and appears in the DemoPaper-Pakistan preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.