NOTES ON PROBLEM AND COURSES OF ACTION ON REASONING

[2]
STUDY NOTEs FOR Banking & Other Competitive Exams

Problem and Course of Action Statement
and assumption
Problem and Course of Action
A course of Action is a step to be taken for
improvement or further action with regard to the
problem on the basis of the information given in
the statement.
Such questions are asked to test your ability to
judge a problem correctly and to determine
the root cause of the problem and then to
prescribe a suitable course of action. As
responsible officers, you will have to face
many administrative challenges which will
require ability to decide correct course
of action. Therefore, these questions are
asked to test such ability in you.
How to Solve :
On the basis of the experience of coming
across a large number of such questions, I can
foretell you that basically there will be two broad
types of pattern of such questions-
 First where the presented situation depends
upon a problem and the suggested course of
action gives solution.
 Second where the presented situation
depends upon a simple fact (not a problem,
just a situation) and the suggested course of
action suggest way of improvement.
Give answer –
(1) If only course of Action I follows.
(2) If only course of Action II follows.
(3) If either course of Action I or II folllows.
(4) If neither course of Action I nor II follows.
(5) If both course of Action I and II follows.
EXAMPLE –
Q.1. Statement : Very large numbers of people from
northern part of the city are suffering from
water borne diseases.
Course of Action :
I. The municipal authority should advice people
living in area not to use water supplied
through pipeline for drinking purpose.
II. The local hospitals should be put on high alert
to tackle the emerging crisis situation.
EXPLANATION
(I) is not valid solution because water is
necessary not only for drinking it also
required for daily use, bathing, working so
no one can avoid the use. But II course of
Action is required because infected water
creates health related problems so hospitals
should be ready to face any situation. Ans. (2)
Q.2. Statement : Despite all the efforts by the
government, thirty cases of polio were reported
in State X as the parents of those children
remained uninformed of this drive against polio.
Course of action :
I. Strict action should be taken against the
parents of children affected from polio.
II. Strict action should be taken against the
doctors administering polio drops in the
state.
EXPLANATION :
Both are weak course of action because we
can’t support any strict course of action before
knowing the real cause. And according to given
condition awareness should be created about polio.
Ans. (4)
Q.3. Statement : Private airlines have increased the
fare during festive season by almost 50%.
Course of action:
I. People should be advised to travel only by
buses and trains during the festive season.
II. Airfares should be regulated by the
government to a certain limit.
EXPLANATION :
At the time of festive season reservations in
trains and buses is the bigest problem as great
number of people like to use airlines. To control
the fare increment government should make
certain limit on private airlines.Ans. (2)
Q.4. Statement : Several passengers were stranded at
the airport as all the flights had to be cancelled
due to severe snowfall for the third consecutive
day.
Course of action :
I. All the flights should be immediately
resumed.
II. Airport authority should provide
[3]

STUDY NOTEs FOR Banking & Other Competitive Exams
appropriate stay arrangements for the
stranded passengers.
EXPLANATION :
Airport Authority should arrange proper
accomodation for the passenger due to
concellation of all flights. Ans. (2)
Q.5. Statement : A practice march by the Army is
scheduled to be held on one of the busiest roads
in the city on Tuesday.
Courses of action :
I. Traffic should be diverted during the
practice march so as to ease traffic
congestion during that time.
II. Public notices should be issued to avoid
using the road till the practice march on
Tuesday gets over.
EXPLANATION :
To avoid the traffic inconvenience, of the public
government should issue the notice and divert
the traffic. Ans. (5)
 Key points-
 Correct course of action should either be lesser
than the problem or should improve the present
situation.
 Simple problem must have simple course of
action and not a complex one so that it may
solve or reduce the problem and not create
more issue..
 Course of action regarding government
action must be given for the wellfare of
public or development of the country.
 Suspension, Restriction or Resignation
will not be immediate course of action but
warning.
Statement and assumption
An Assumption is some thing which is assumed,
supposed and taken for granted.
When somebody says something he does
not put everything and every aspect of his idea
into that which he takes for granted, this may be
defined as an assumption.
Cases of Assumption
C ases of assum ption
C onjunction C onn otive P hrase
B efore, so, even,
after, therefore, as
a result of although,
despite of, inspite of
D efinitive W ords
O nly, best, all
Strongest, certainly
definitely
C ases of assum ption
C onjunction C onn otive P hrase
B efore, so, even,
after, therefore, as
a result of although,
despite of, inspite of
D efinitive W ords
O nly, best, all
Strongest, certainly
definitely
C ases of assum ption
C onjunction C onn otive P hrase
B efore, so, even,
after, therefore, as
a result of although,
despite of, inspite of
D efinitive W ords
O nly, best, all
Strongest, certainly
definitely
1 – Definitive Words
While evaluating an assumption you can always
take a clue from some words that lend a definite
meaning to the statement.
2- Conjunction
When a statement consists of two clauses and
clauses are connected by conjunction, the nature
of conjunction used, goes a long way in detecting
the assumption that the author must have made.
3- Connotive Phrase
Some times the author says the things in indirect
way and because of this we remain untoughed
with the meaning.
Important Facts Related to
Invalid Assumption
 Some times assumptions are contrary to
their statement or not connected with the
statement and can easily be rejected.
 An assumption is invalid if it is a mere
restatement putting it in different words of
given statement.
 The given assumption is invalid if it is an
inferrence derivable from given statement.
 An assumption is invalid if it uses too farfatched reasoning.
Difference Between Implication
And Assumption
Sometimes implications are also treated as
assumptions. It is slightly different from
assumpiton.
Impication means the hidden meaning of
statement while assumption is something on
which statement is based.
Given Answer –
(1) If only I is implicit.
(2) If only II is implicit.
(3) If either I or II is implicit.
(4) If neither I nor II is implicit.
(5) If both I and II are implicit.
[4]
STUDY NOTEs FOR Banking & Other Competitive Exams

EXAMPLEs
Q1. Statement : ‘Do not enter – avoid the risk of
getting infected with the ABC disease’-written
outside the quarantine ward no. 2 (meant only
for ABC disease) of a hospital’.
Assumption :
I. Disease ‘ABC’ is contagious.
II. All the patients in ward no.2 suffer from
disease ABC.
EXPLANATION :
ABC is a contagious disease and all patient
of ward number 2 are suffering from ABC
disease, on the behalf of these assumption above
condition is given.
Ans. (5)
Q.2. Statement : In city Z, people prefer to buy
Car X instead of Car Y as Car X has German
technology which is very advanced.
Assumption :
I. Cars with German technology are
perceived to be better than other cars
in city Z.
II. Had German technology been present
in Car Y also, its sales would have
crossed car X’s sales.
EXPLANATION :
It seams that German Technology is better than
other technologies so it would increase the sale.
Both assumptions are implicit. Ans. (1)
Q.3. Statement : Railway does not provide
concession to any one for travelling to certain
holiday destinations.
Assumption :
I. Railway services are available for
travelling to these holiday destinations.
II. Railways provides concession to certain
persons for travelling to places
other than these holiday destinations.
EXPLANATION :
Railway services are available for travelling
holiday destination on the basis of this
assumption above statement is given. But
the other assumption sounds just opposite
meaning. Ans. (1)
Q.4. Statement : “Travelers with a ticket for the
second class if found travelling in the first class
compartments would be penalized”- Notice in
the compartments of a train.
Assumption :
I. Travelers with a ticket for the first class
are also not allowed to travel in the second
class compartments.
II. Inspections are carried out in the train to
check the tickets.
EXPLANATION:
First assumption is not related with statement.
Inspections are carried out in trains to check the
tickets. Ans. (2)
Q.5. Statement : The prices of petrol and diesel have
remained unchanged only in Nigeria since the
past three years.
Assumption :
I. Petrol and diesel prices have changed
elsewhere in the world during these three
years.
II. Before this three years period, petrol and
diesel were available at a price different
from the present rates.
EXPLANATION:
The price of petrol and diesel have changed else
where in the world in three years in comparison
to Nigeria and prices remain unchanged since
three years, it means there rate would have been
different three years before . Ans. (5)
 Memorable Points-
 Statement is a part of our speech of which
most of the ideas remain unexpressed.
 Assumption is something in which the reader
assume something on the basis of the given
statement.
 If statement and assumption are not corelated then it is not implicit validity.
 Assumption is always positive regarding
the comptition of the work favouring the
executor.
 Request/order/Advise is considered valid in
the case of Assumption.
[5]

STUDY NOTEs FOR Banking & Other Competitive Exams
Important Questions
Problem and Course of Action
Q.1-20. In each question below is given a statement followed by two courses of action numbered I and II. A course
of action is a step or administrative decision to be taken for improvement, follow-up or further action in
regard to the problem, policy, etc. On the basis of the information given in the statement, you have to assume
everything in the statement to be true, then decide which of the suggested courses of action logically follow(s)
for pursuing.
Give answer
(1) If only Course of action I follows. (2) If only Course of action II follows.
(3) If either Course of action I or II follows. (4) If neither Course of action I nor II follows.
(5) If both Courses of action I and II follow.
Q.1. Statement : Many customers complained to the manager of the local branch of the bank against the high
handedness of the bank employees while dealing with the customers.
Courses of action:
I. The bank management should immediately suspend all the employees of the branch and deploy a different
set of employees.
II. The.bank management should ask for a report from the manager of the branch for taking necessary steps.
Q.2 Statement : Two persons, while on their daily walks in the jogger’s park were killed by unidentified miscreants
early in the morning.
Courses of action:
I. The police authority should deploy police constables near the jogger’s park to prevent such criminal acts
in future.
II. The citizens of the locality should go for early morning walks in groups to avoid such attacks.
Q.3. Statement : A very larger number of recently recruited officers left the Bank after attending the training
programme on branch Banking operations conducted by the bank.
Courses of action:
I. The bank should take a bond of at least two years from each newly recruited officers before putting them
into the training programme.
II. The bank should conduct the training programme at least one year after the newly recruited officers joined
the bank.
Q.4. Statement : An increasing number of graduates produced by Indian universities are unemployable.
Courses of action:
I. Colleges and Institutes of higher learning should be given greater autonomy to decide course content.
II. World class foreign universities should be encouraged, to set up campuses in India.
Q.5. Statement :
Heavy rains hit the state during October, just before the State Assembly elections and caused heavy damage
to standing crops in most parts of the state.
Courses of action:
I. Elections should be postponed to give candidates the opportunity to campaign.
II. The Government should announce a relief package for those who are affected.
[6]
STUDY NOTEs FOR Banking & Other Competitive Exams

Q.6. Statement : The dolphin population in India has been decreasing sharply over the past few years.
Courses of action :
I. Dolphins should be declared an endangered species and be breed in aquariums or protected areas.
II. Locals should be enlisted to protect dolphins.
Q.7. Statement : In a mock security drill at the airport, a passenger ignored the instructions of the crew and severely
injured his leg while hurrying to get off the plane.
Courses of action:
I. The passenger should sue the airline for negligence.
II. The airline should provide immediate medical assistance to the passenger.
Q.8. Statement: Illegal construction in the area which attracts thousands of tourists every year has been leading
to frequent landslides and floods.
Courses of action:
I. The government should put a ban on all kinds of construction work in the area.
II. Tourism in the area should be totally banned until illegal construction work stops completely.
Q.9. Statement : Imported fruits which are priced at nearly thrice the regular price have been floading the market,
making fruits out of reach for a middle class household.
Courses of action:
I. The government should regulate the prices of fruits so as to make them affordable to the common man.
II. Indian farmers should be encouraged to grow the imported varieties of fruits as these are more popular
among the general public.
Q.10. Statement : Four cases of pick pocketing were reported at one of the most renowned five star hotels last
evening
Courses of action :
I. The hotel staff should be instructed to be vigilant and report any suspicious person or activity.
II. More CCTV cameras should be installed near the dining and reception areas of the hotel where these
incidents took place.
Q.11. Statement : Despite repeated warnings to students and parents from the college, some students have finally no fulfilled
the mandatory criteria of 75% attendance in order to appear for exams
Courses of action:
I. The college should stop adhering to this particular criteria.
II. Either the parents or guardians of the defaulters should be called for a meeting.
Q.12. Statement : The students residing at the hostel of a university had to stay without electricity. and water for 48
hours not because of shortages but because of negligence by the hostel staff.
Courses of action:
I. The management of the university should look into the matter and take action against such negligence.
II. The students should leave the hostel and find some alternate accommodation.
Q.13. Statement : Local villagers have reported that instances of illegal cutting of trees have increased over the last
few months in the forest area.
Courses of action:
I. The locals should be encouraged to report any such activities in the future.
II. Authorities should immediately look into the matter and put a stop to such illegal activity.
[7]

STUDY NOTEs FOR Banking & Other Competitive Exams
Q.14. Statement : There is an exodus of good student from the vernacular medium schools to the nearby English
medium schools in the locality.
Course of action :
I. The management of the vernacular medium schools should immediately set up a joint action committee
to find out the reason for the exodus and find way to reverse the trend.
II. The management of the English medium schools should immediately set up a joint action committee to
regulate the exodus to accommodate the next student as per their capacity.
Q.15. Statement : There has been sudden increase in the number of migrants from rural areas to big cities in the
recent past causing extensive pressure on the meager resources of the civic amenities.
Course of action :
I. The concerened civic authority should immediately put a complete ban on entry of imigrant population .
II. The govt. should immediately set up task force with a mandate to find ways to reduce to influx of migrant
population in the big cities.
Q.16. Statement: Despite all the efforts by the goverment, thirty cases of polio were reported in State X as the
parents of those children remained uninformed of this drive against polio.
Courses of action :
I. Strict action should be taken against the parents of children affected from polio.
II. Strict action should be taken against the doctors administering polio drops in the state.
Q.17. Statement : Several passenger were standed at the airport as all the flights had to be cancelled due to severe
snowfall for the third consecutive day.
Course of action:
I. All the flights should be immediately resumed.
II. Airport authority should provid appropriate stay arrangements for the standed passengers.
Q.18. Statement: Very few students have been opted for academic research as professional courses offer better
economic dividends.
Course of action:
I. Academic research should be linked to industry so as to improve its economic perspective.
II. Economic dividends of professional courses should be made less attractive so as to attract students to
academic research as well.
Q.19. Statement: People see tax as a burden and thus device ways to underpay or avoid it altogether.
Courses of action :
I. Govt. should educate and inform citizens about the ways in which taxes help in development of the nation
II. Tax rates should be increased so that the under- recovery in collection is compensated
Q.20. Statement: A plethora of bodies with no single one which can be held accountable for city’s development is
the;
key reason behind its rather stagnant state.
Courses of action :
I. Each body should be given a set of duties and there should be no duplication in such allocation.
II. An umbrella committee should be appointed with powers to regulate actions of all other bodies.
Statement and assumption
Q.1-20. In each question below is given a statement followed by two assumptions numbered I and II. An assumption
is something supposed or taken for granted. You have to consider the statement and the following assumptions
and decide which of the assumptions is implicit in the statement.
[8]
STUDY NOTEs FOR Banking & Other Competitive Exams

Give answer (1) if only Assumption I is implicit.
Give answer (2) if only Assumption II is implicit.
Give answer (3) if either Assumption I or II is implicit.
Give answer (4) if neither Assumption I nor II is implicit.
Give answer (5) if both Assumptions I and II are implicit.
Q.1. Statement The civic body put up a huge notice board on the beach located at an isolated part of the city as “Many
picknickers died while swimming in the sea during the past few months”.
Assumptions:
I. Picknickers may ignore the notice and continue venturing into the sea.
II. Picknickers may read and be careful while venturing into the sea.
Q.2. Statement: The govt. has recently advised all the public sector banks to reduce rate of interest on home loans
upto Rs.25 lakhs.
Assumptions:
I. The public sector banks may reduce the interest on all home loans upto Rs.25 lakhs.
II. People may take undue advantage of the govt.’s decision.
Q.3. Statement : The local hospital put up a notice board at the main entrance stating that the hospital will carry
out free check up for detecting cancer for the people staying entire locality.
Assumptions:
I. Large number of people living in the locality may avail the free check up -facility offered by the hospital.
II. Hospital staff deployed for the purpose may be able to cope up with the rush of people for check up.
Q.4. Statement: Government has decided to relocate all the factories from the city with imme diate effect to reduce
the pollution.
Assumptions:
I. Pollution in the city is being caused only because of the factories exist ing there.
II. People may be able to manage travelling daily to the relocated factories
Q.5. Statement: The government announced a heavy compensation package for all the victims of the terrorist attacks.
Assumptions:
I. Such incidents of terror may not occur in near future.
II. Compensation may mitigate the anger among the citizens against the current government.
Q.6. Statement: Even though the number of sugar factories is increasing at a high rate in India, we still continue
to import it from other countries.
Assumptions:
I. Even the increased number of factories may not be able to meet the demand of sugar in India.
II. The demand for sugar may increase substantially in future.
Q.11. Statement: A major retail store announced thirty percent reduction on all food items during the weekend.
Assumptions:
I. People may still prefer buying food items from other stores.
II. Large number of customers may visit the retail store and buy food items.
Q.12. Statement : The captain of the school football team selected only fourteen players to play all the eight matches
of the interschool football competition.
[9]

STUDY NOTEs FOR Banking & Other Competitive Exams
Assumptions:
I. There may be adequate number of football Players for all the matches.
II. The captain may be able to play in all the matches.
Q.14. Statement : The school authority has decided to give five grace marks in English to all the students of Std. IX as
the performance of these students in English was below expectation.
Assumptions:
I. Majority of the students of Std. IX may still fail in English even after giving grace marks.
II. Majority of the students of Std. IX may now pass in English after giving grace marks.
Q.15. Statement : The govt. has decided to earmark a separate lane in the metropolis for passenger vehicles with
more than one occupant.
Assumptions:
I. The move may help decongest the roads of the metropolis.
II. Many people may resort to pool car system to avoid traffic snarls.
Q.16. Statement : The railway authority has announced that it will carry out major repair work for two days beginning
Saturday on the main line connecting the two big cities in the State bringing the rail service to a halt.
Assumptions:
I. People may reschedule their journey in view of the railway authority’s decision.
II. People may still plan their travel by train between the two cities even on these two days.
Q.17. Statement : The civic authority of the metropolis has decided to suspend sanctioning of new building proposals
for six months and assess the impact of the current building projects on the city’s amenities.
Assumptions:
I. The builders’ lobby may move the court against the civic body’s decision.
II. The civic authority may be able to complete the impact study in about six months.
Q.18. Statement : ‘Do not enter – avoid the risk of getting infected with the ABC disease written outside the
quarantine ward no. 2 (meant only for ABC disease) of a hospital’.
Assumptions :
I. Disease ‘ABC’ is contagious.
II. All the patients in ward no.2 suffer from disease ABC.
Q.19. Statement : In city Z, people prefer to buy Car X instead of Car Y as Car X has German technology which
is very advanced.
Assumptions :
I. Cars with German technology are perceived to be better than other cars in city Z.
II. If German technology had been present in Car Y also, its sales would have crossed car X’s sales.
Q.20. Statement : The municipal corporation has announced 50 percent reduction in water supply till monsoon
arrives in the city.
Assumptions:
I. People may protest against the unilateral decision of the municipal corporation.
II. Municipal Corporation may reduce its taxes from the residents as it failed to provide adequate water.
[10]
STUDY NOTEs FOR Banking & Other Competitive Exams

Explanation/Important Questions
Problem and Course of Action
Q.1.(4) First is not valid because it is extreme and
immediate and second to because bank
management has no role in question.
Q.2.(1) I is valid because deploying police at place of
accident is a proper action.
II is not valid because it is a casual suggestion.
Q.3.(1) Rating bond may restrict the rate of leaving
candidates so I is valid. II is not valid because
it is ridiculous.
Q.4.(4) To provide autonomy to decide course will
greatly effect the quality of course, so (I) does
not follow. To encourage foreign universities
is not the solution of the problem. So (II) also
does not follow.
Q.5.(2) Course of Action (I) does not follows beacuse
it is only wastage of extra money and time. To
provide relief package to affected people is
valid course of action. So (II) follows.
Q.6.(5) To declared dophins as endangered species and
to breed in aquariums and protected areas will
help to increase the number of Dolphins. So
course of action (I) is valid listing the locals to
protect the dolphins may prove a helpful step
in this direction so course of action (II) is also
valid.
Q.7.(2) Only II follows because the Ist one not solve
our problem and the second one solve the
above problem. of the statement.
Q.8.(4) Both I and II are not follows because they do
not solve the problem of the statement.
Q.9.(5) Both I and II are follows because they solve
the problem of the statement.
Q.10.(5) Both I and II are follows because they solve
the problem of the statement.
Q.11.(2) Only II follows because the Ist one not solve
our problem and the second one solve the
above problem. of the statement.
Q.12.(1)
Q.13.(1) Only I follows because the Ind one not solve
our problem and the first one solve the above
problem.
Q.14.(1) Only I follows because the Ind one not solve
our problem and the first one solve the above
problem.
Q.15.(2) Only II follows because the Ist one not solve
our problem and the second one solve the
above problem. of the statement.
Q.16.(4) Both I and II are not follows because they do
not solve the problem of the statement.
Q.17.(2) Only II follows because the Ist one not solve
our problem and the second one solve the
above problem.
Q.18.(1) Only I follows because the second one not
solve our problem and the first one solve our
problem.
Q.19.(1) People should provide information about
countribution of tax payment in country’s
development.
Q.20.(5) Both I and II are follows because they solve
the problem of the statement.
Statement and assumption
Q.1.(2) I is not implicit because it is negative
assumption.
II is implicit because it is the basis of notice.
Q.2.(1) An advice is given assuming that it will be
followed so I is implicit. II is not implicit
because it is negative.
Q.3.(5) If I and II are not possible then there no use
making such arrangements so both must have
been assumed.
[11]

STUDY NOTEs FOR Banking & Other Competitive Exams
Q.4.(4) Both assumption does not follow (I)
assumption does not follow because of only
used in this assumption. II Assumption also
does not follow because aim for relocation is
discussed in the statement.
Q.5.(4) Both assumption does not follow (I)
assumption does not follow because there
is not only discussion about the future. II
assumption also does not follow because
compensation is not for mitigating the anger
among the citizens.
Q.6.(1) Only I assumption follows, because it explain
the situation for the statement.
Q.7.(2) ‘II’ is a valid assumption because this type of
presumption may easily lead a shopkeeper to
announce a big discount.
Q.8.(5) The captain selected only fourteen player
even when he knew that they have to play 8
matches it mean the captain was assuming that
this no. of players is adequate so T is implicit.
II is also implicit because- this is quite natured
that a person has been made captain because
he is supposed to play in all the matches.
Q.9.(2) If majority of students still fail then there is no
meaning of giving grace marks i.e. this can’t
be implicit. Since majority of students showed
the poor performance so the target was that
majority of students may how pass. II may be
implicit.
Q.10.(1) Preventing roads from congention may have
been one of the reasons so I is an implicit
assumption. II seems more to been effect so it
not implicit.
Q.11.(1) Authorities may have been expecting people
to reschdule their journey while making such
announcement so (I) is implicit. II is not
implicit because it goes against the motive of
statement.
Q.12.(2) (I) Is not implicit because it firstly is a negative
assumption and secondly the action is not so
hard that the party could move to court.
II. is implicit because that is why six month’s
time has been given.
Q.13.(5) It may be possibily that all the patients of ward
no.2 have been suffering from contagious
disease ABC.
Q.14.(1) According to the statement only I assumption
is implicit.
Q.15.(4) According to the statement both assumption
are not implicit.
Q.16.(1) To prevent the people for crossing the railway
track the police has punished them.
Q.17.(5) The number of applicatns may have increased
so most of the engineering colleges has
applied for sanctioning more seats.
Q.18.(4) Most of the private companies have decided
against annual increase in salaries due to
economic situations employees protest
against decision is an after effect and any
type of change in salaries next year cannot be
expected so both assumptions are not impicit.
Q.19.(5) The govt. has levy congestion tax to passengers
travelling by air to and from metro cities it is
posibile that collected amount will be used
for handling huge traffice so first assumption
is implicit and any type of charge, tax, may
be levied on the basis of their capability so
second in also implicit.
Q.20.(5) According to the statement both assumption
are implicit.



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