UPSC Prelims 2024 · CSAT
Question 4: Reading Comprehension

Based on the above passage, the following assumptions have been made :
- 1.Fiscal policies of governments are solely responsible for higher prices.
- 2.Higher prices do not affect the long-term government bonds.
Which of the assumptions given above is/are valid?
AnswerUPSC’s answer is (d).
Neither assumption is supported. The passage says rising inflation prompts governments to spend freely, so spending is partly a reaction to high prices; calling fiscal policy the sole cause of higher prices is too strong. The passage never discusses long-term government bonds, and its logic that higher rates raise government debt costs points the other way. Remember: absolute words such as 'solely' or 'do not affect' rarely hold in assumption questions.
- 1. Too absolute; the passage presents government spending as a response to inflation.
- 2. The passage never says this; it says nothing about long-term bonds.
How you could have got this
- If you were sure statement 1 is not correct, (a) and (c) go: each of them includes 1.
What you needed to know: Too absolute; the passage presents government spending as a response to inflation.
- Then, if you were sure statement 2 is not correct, (b) goes: it includes 2.
What you needed to know: The passage never says this; it says nothing about long-term bonds.
Only (d) is left. This one needs every statement.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong. 'Solely' ignores other causes; the passage shows spending rising in response to inflation, not fiscal policy as the only cause.
- (b) Wrong. The passage never says bonds are unaffected by higher prices.
- (c) Wrong. Neither assumption is supported by the passage.
- (d) Right. Assumption 1 is too absolute and assumption 2 has no basis in the passage.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2024, General Studies Paper II (CSAT), Series A. The paper on upsc.gov.in.