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    Read the following information carefully and answer the question that follows.Statement – Domestic investment is very less in Country-A despite having
    Question

    Read the following information carefully and answer the question that follows.
    Statement – Domestic investment is very less in Country-A despite having good savings rate. The saved resources need to be mobilized such that the locked resources are freed up for right investments. Some people here are investing in less productive assets like consumer durables and gold. As per the recommendations of experts, if the Country-A needs to grow, there should be more investments in other productive more beneficial sectors such as agriculture, manufacturing or services. You must assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the course of actions logically follow for pursuing.
    A. People residing in Country-A should be asked to keep their savings to themselvesand should not rely on any of the investment options in this difficult time.
    B. People in Country-A should be made aware about various investment options so that they can invest in ways which are more productive and provide more returns.
    C. People should be discouraged to put their investments in sectors such as agriculture, manufacturing or services sector as per the expert's recommendations.
    D. Any sort of foreign direct investment should not be allowed in the times where domestic investments are fairly low.​​

    A.

    Only A, C and D

    B.

    Only D

    C.

    Only B and C

    D.

    Only B

    Correct option is D

    Statement– Domestic investment is very less in Country-A despite having good savings rate. The saved resources need to be mobilized such that the locked resources are freed up for right investments. Some people here are investing in less productive assets like consumer durables and gold. As per the recommendations of experts, if the Country-A needs to grow, there should be more investments in other productive more beneficial sectors such as agriculture, manufacturing or services. You must assume everything in the statement to be true and on the basis of the information given in the statement, decide which of the course of actions logically follow for pursuing.
    A. People residing in Country-A should be asked to keep their savings to themselves and should not rely on any of the investment options in this difficult time. (Reject A)
    This goes against the suggestion in the statement. The problem is low productive investment, not that people are investing too much.​
    B. People in Country-A should be made aware about various investment options so that they can invest in ways which are more productive and provide more returns. (Keep B)
    This aligns perfectly with the statement. If people are investing in unproductive assets, making them aware of better options can help.
    C. People should be discouraged to put their investments in sectors such as agriculture, manufacturing or services sector as per the expert's recommendations. (Reject C)
    This directly contradicts the experts’ recommendations in the statement, which promotes investment in these sectors.​
    D. Any sort of foreign direct investment should not be allowed in the times where domestic investments are fairly low. (Reject D)
    The statement doesn’t mention FDI at all, and restricting it has nothing to do with encouraging domestic investment.​
    So, only B
    Thus, correct option is (d).

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