Cause and Effect Q12

12.	Statements:        I.            The local co-operative credit society has decided to stop giving loans to farmers with immediate effect.     II.            A large number of credit society members have withdrawn major part of their deposits from the credit society.
	A. Statement I is the cause and statement II is its effect B. Statement II is the cause and statement I is its effect C. Both the statements I and II are independent causes D. Both the statements I and II are effects of independent causes E. Both the statements I and II are effects of some common cause

Answer: Option B

Explanation:

Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.