Question

Directions: Each question has a set of four sequentially ordered statements. Each statement can be classified as one of the following:

• Fact (F): a piece of information that has been heard, seen or read, and which is open to discovery or verification.
• Inference (I): a conclusion drawn about the unknown, on the basis of the known.
• Judgment (J): an opinion that implies approval or disapproval of persons, objects, situations or occurrences in the past, present or future.

Select the answer option that best describes the set of four statements.

1. SEBI has given an 'informal guidance' to Insilco on the buy back of Non Convertible Debentures.
2. This move could serve as a useful guide for other companies who may have similar plans.
3. The debentures are due for redemption in three annual installments.
4. Insilco may go ahead with early redemption since SEBI has clarified the process.

• A. FIII
• B. FJJI
• C. FJFI
• D. JJJI

Hint:

Check each statement against a record for Fact, look for value words like "useful" for Judgment, and watch for a prediction built on a stated fact for Inference.

Answer 1

The Correct Option is C

Go statement by statement and ask what kind of claim is being made: is it something on record, is it a prediction built from a known fact, or is it really praise or criticism in disguise?

1. Statement 1: SEBI gave Insilco an informal guidance on the debenture buyback. This is a specific regulatory event with a definite yes or no answer, it either happened or it did not, and it can be confirmed from SEBI's records. That makes it a Fact.
2. Statement 2: this move "could serve as a useful guide" for other companies. The word "useful" is doing the real work here, it is not describing what happened, it is praising the move and rating its value for others. That kind of approval is exactly what a Judgment looks like.
3. Statement 3: the debentures are due for redemption in three annual installments. This is a plain, verifiable schedule detail, the sort of fine print found in the debenture terms, so it is a Fact, just like statement 1.
4. Statement 4: Insilco "may go ahead with early redemption since SEBI has clarified the process." Notice the word "since", it ties this statement directly to statement 1's fact about SEBI's guidance and uses it to predict what Insilco is likely to do next. It is not an opinion about whether that is good or bad, it is a forward-looking conclusion drawn from known information, which is exactly what an Inference is.

Putting the four labels in order gives F, J, F, I, which reads as FJFI.

Let's summarize:

• Statements 1 and 3 report checkable, on-record details, so both are Facts.
• Statement 2 rates the move as "useful," which is an opinion, so it is a Judgment.
• Statement 4 predicts Insilco's next move based on the fact in statement 1, so it is an Inference.

The correct sequence is FJFI, matching option (c).