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05 Jun 2025, 00:30
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
65% (01:26) correct
35%
(01:42)
wrong
based on 258
sessions
History
Date
Time
Result
Not Attempted Yet
Banker: Our asset quality is fairly strong and has been improving in the past few quarters.
But given our size, we cannot afford to allow any of our large accounts to turn nonperforming. It would create havoc for us.
Which of the following must be true on the basis of the statements made by the banker above?
(A) The bank in question must be a small sized bank.
(B) If any of the bank’s accounts become non-performing, the bank will go bankrupt.
(C) The bank does not mind if any of its smaller accounts turn non-performing.
(D) The bank used to have assets of a poor quality a few quarters back.
(E) One of the important factors that will determine the bank’s performance is the quality of its large accounts.
But given our size, we cannot afford to allow any of our large accounts to turn nonperforming. It would create havoc for us.
Which of the following must be true on the basis of the statements made by the banker above?
(A) The bank in question must be a small sized bank.
(B) If any of the bank’s accounts become non-performing, the bank will go bankrupt.
(C) The bank does not mind if any of its smaller accounts turn non-performing.
(D) The bank used to have assets of a poor quality a few quarters back.
(E) One of the important factors that will determine the bank’s performance is the quality of its large accounts.
05 Jul 2025, 08:45
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Bunuel
Official Explanation
Answer: E
Since this is an Inference question, let’s look at each option and eliminate.
(A) There is no way of concluding this.
(B) This is an extreme conclusion. While we know in such a case the bank will be negatively affected, we can’t necessarily conclude that the bank will go bankrupt.
(C) Again, this doesn’t necessarily have to be true. This may not impact the bank as much as the non-performance of a large account would, but it might still be a bad thing for the bank.
(D) That the asset quality of the bank has improved does not necessarily mean its asset quality was poor a few quarters back. Maybe it was good then and has become even better now.
(E) This has to be true because the stimulus clearly states that even if one large account goes bad, the bank will face problems. So while there could very well be other factors that affect the bank’s performance, the quality of its large accounts definitely has to be one of them.
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