Only conclusion I follows
Only conclusion II follows
Either I or II follows
Neither I nor II follows E. Both I and II follow
Answer is Right!
Answer is Wrong!
The correct answer is: Only conclusion I follows.
The Bank of England’s move to auction 25 metric tons of gold drew plenty of bidders looking for a bargain, but was criticised by major gold producers worldwide. This suggests that the major gold producers believe that the Bank of England should not auction gold which it possesses to keep steady international prices of gold. However, there is no evidence to suggest that bidders should quote higher gold prices to retain present value of gold in the international markets. In fact, it is possible that bidders are willing to pay a lower price for gold if they believe that the Bank of England is selling gold to raise cash.
Here is a more detailed explanation of each option:
- Option A: Only conclusion I follows. This is the correct answer. The evidence suggests that the major gold producers believe that the Bank of England should not auction gold which it possesses to keep steady international prices of gold. However, there is no evidence to suggest that bidders should quote higher gold prices to retain present value of gold in the international markets.
- Option B: Only conclusion II follows. This is not the correct answer. The evidence does not suggest that bidders should quote higher gold prices to retain present value of gold in the international markets.
- Option C: Either I or II follows. This is not the correct answer. The evidence does not support either conclusion.
- Option D: Neither I nor II follows. This is the correct answer. The evidence does not support either conclusion.
- Option E: Both I and II follow. This is not the correct answer. The evidence does not support both conclusions.