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    Direction: Each passage is followed by five inferences. You are required to examine each inference separately in the context of the passage and decide upon its degree of truth or falsity.
    The interest rates in the institutional market have toppled significantly and currently are in the range of 5.25 to 5.75 percent per annum. However, interest rates on little and small savings scheme such as Post office Saving Schemes, RBI Relief Bonds, Provident Fund and PPF continue to be administered at high levels in relation to market rates. These schemes also have a variety of tax incentives, which result in towering the post-tax returns and on the flip side more liability for the government. It is ironic that it is predominantly the urban population (and more often people in high tax bracket), which is benefiting from high rates and tax benefits. The size of small savings has presumed a note-worthy proportion of financial savings in the country. This has also increased dramatically the debt service load of both Central and State governments.

    Tax incentives are provided to benefit all sections of the society.

    Options :-

    1. If the inference is definitely true, i.e., it properly follows from the statement of facts given.
    2. In the inference is probably true though not definitely true in the light of the facts given.
    3. If the data are inadequate i.e., from the facts given you cannot say whether the inference is likely to be true or false.
    4. If the inference is probably false though not definitely false in the light of the facts given.
    5. If the inference is definitely false i.e., it cannot possibly be drawn from the facts given or it contradicts the given facts.
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