# How to Solve Cause & Effect question: Important Tips with examples!

By Gaurav Singh Bhadouria|Updated : October 16th, 2019

In the upcoming Banking & Insurance exam, verbal reasoning is an important part of the reasoning and computer aptitude section. It includes various topics like assumptions, inferences, cause and effect, a course of action, arguments, etc.

In this article, we are providing you with the Important Concept & Short Tricks on Cause & Effect Questions in Reasoning which is usually asked in Bank Exams. Use these short cuts to solve questions within minimum time. These shortcuts & Concepts will be very helpful for your upcoming SBI, LIC and IBPS examination.

### Cause & Effects Details

Cause & Effect is a major topic of logical reasoning. Usually, in such questions, the candidates are asked to determine whether a given event is a cause or the effect of some other event. The idea behind putting these questions is to ascertain the analytical and logical reasoning ability of the aspirants.

An event does not happen automatically but there is a definite cause behind it. The causes are conditions under which these events happen. The scientific view of cause is one where:

1. It must be a scientifically proven fact that the cause leads to the said effect.

2. The said effect should be a logical consequence of the said cause.

There may be several necessary conditions for the occurrence of an event and that they must be included in the sufficient condition.

Immediate Cause: An immediate cause means a cause that immediately precedes the effect. The immediate cause is the most proximate in time, to the effect.

Principal Cause: The principal cause is the main and the most important reason behind the effect.

Independent Cause – An independent cause means a cause that does not have any relationship with the given statement.

Rule – Cause is always antecedent. Naturally, the cause will occur before the effect. Hence, if two events are given then the effect that is chronologically antecedent to the other one can only be regarded as a possible cause.

### Format of the problem

Q1. Statements:

1. Indian Economy is observing remarkable growth.

2. The standard of living among middle-class society is constantly going up since part of a few years.

Options

1. Statement I is the cause and statement II is its effect.

2. Statement II is the cause and statement I is its effect.

3. Both the statements I and II are independent causes.

4. Both the statements I and II are the effects of independent causes.

5. Both the statements I and II are the effects of some common cause.

Ans 2

Since the standard of living among the middle-class society is constantly going up so Indian Economy is observing remarkable growth.

Q2. Statements:

I. There is an increase in the water level of all the water tanks supplying drinking water to the city during the last fortnight.
II. Most of the trains were canceled last week due to water-logging on the tracks.

1. Statement I is the cause and statement II is its effect.

2. Statement II is the cause and statement I is its effect.

3. Both the statements I and II are independent causes.

4. Both the statements I and II are the effects of independent causes.

5. Both the statements I and II are the effects of some common cause.

Ans. 5

The problems discussed in both the statements are clearly the result of a heavy downpour in the area.

Q3. Statements:

A. There has been a sharp decline in sales of passenger cars during the last few months.
B. Many finance companies have announced attractive schemes of car loans with a moderate interest rate.

1. Statement I is the cause and statement II is its effect.

2. Statement II is the cause and statement I is its effect.

3. Both the statements I and II are independent causes.

4. Both the statements I and II are the effects of independent causes.

5. Both the statements I and II are the effects of some common cause.

Ans. 1

Had the sale of cars been high or usual, there is no reason for the finance companies to come up with schemes with modern interest rates because anyway people would be purchasing the cars. Schemes for modern interest rates would have been introduced solely for the purpose of luring people to purchase them and take a hike in the sales. Hence, statement A is the cause and B is the effect.

Q. Statements:
I. The RBI has released new instruction to banks asking them to reduce the interest rates of certain kinds of loans namely, home loan, education loan, and loan for small scale industries.
II. The students and parents have been protesting against the massive hike in fees by professional institutes and most of the students are forced to take education loans.

Options:

1. Statement I is the cause and statement II is i4ts effect.

2. Statement II is the cause and statement I is its effect.

3. Both the statements I and II are independent causes.

4. Both the statements I and II are the effects of independent causes.

5. Both the statements I and II are the effects of some common cause.