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Logical Reasoning Question on Syllogisms

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 A large number of credit society members have withdrawn major parts of their deposits from the credit society.
This questions has a statement followed by two Conclusions I and II. Consider the statement and the following conclusions.Decide which of the conclusions follows from the statement.

A

if Statement I is the cause and Statement II is its effect

B

if Statement II is the cause and Statement I is its effect

C

if both the Statements I and II are effects of independent causes

D

if both the Statements I and II are effects of some common cause

Answer

if Statement II is the cause and Statement I is its effect

Explanation

Solution

Since most of the deposits are withdrawn by members of the society , there will be shortage of cash deposits , which is why credit society has decided to stop giving loans to farmers with immediate effect.
So the correct option is (B) : .