GIC Re Assistant Manager Practice Questions - GIC Re Assistant Manager Scale I Exam

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Statement: The central bank lowered benchmark interest rates today to stimulate credit demand and economic activity. Assumption I: Lower interest rates will encourage businesses to borrow more money. Assumption II: Commercial banks will immediately pass the full benefit of rate cuts to retail consumers.

Only assumption I is implicit Only assumption II is implicit Both assumptions I and II are implicit Neither assumption I nor II is implicit

Correct Answer:

Only assumption I is implicit

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