Directions: The critical reasoning question is based on a short argument, a set of statements, or a plan of action. For each question, select the best answer of the choices given and explain why the chosen answer is the right fit.
Statements: Three out of every four banks in the city have a bad NPA (non-performing assets) yet the banks are opening new branches everywhere. The financial condition of most of the banks is on a sinking ship and the government has given out ultimatums to these banks to either set sail or go down.
Which of the following assumptions hold?
1
The financial condition of banks totally depends upon the NPA.
2
Banks should handle NPA and financial condition before starting new branches.
3
Three out of all the four branches that opened, have been warned by the government to perform or perish.
4
The government has warned the banks to open new branches or be closed down forever.
5
None of the above.