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Que. Statement: The Central Government has directed the State Governments to reduce government expenditure in view of the serious resource crunch and it may not be able to sanction any additional grant to the states for the next six months.
Assumptions:

I. The State Governments are totally dependent on Central Government for its expenditures.
II. The Central Government has reviewed the expenditure account of the State Government.
III. The State Governments will abide by the directive.
a. None is implicit
b. Only II and III are implicit
c. Only III is implicit
d. All are implicit
Correct Answer:Only II and III are implicit
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