In the question below, are given a statement followed by three courses of actions numbered I, II and III. On the basis of the information given, you have to assume everything in the statement to be true, and then decide which of the following suggested courses of actions logically follow(s) for pursuing. Statement: The government will ‘very soon’ implement the second set of measures including curb on imports of non-essential items to shore up rupee to 68-70 level against the US dollar, Economic Affairs Secretary Subhash Chandra Garg said, terming the about 12 per cent slide in the currency as a temporary phenomenon. The government had earlier this month announced easing of overseas borrowing norms for manufacturing companies, removal of restrictions on foreign portfolio investors (FPI) investment in corporate bonds and tax benefits on Masala bonds to shore up rupee and check widening of current account deficit. Courses of action: I. Now, the Centre has prepared a list of non-essential items whose imports can be curbed and also drawn up a separate list of goods whose exports can be boosted with a little policy intervention. II. A group headed by the Commerce Secretary has ‘more or less’ completed its task on finalizing the list. III. The rupee has been battered for over a month now amid sell-offs sweeping emerging markets following a rout in the currencies of Argentina and Turkey. Correct Answer Neither II nor III follows A course of action is something that needs to be done considering the present scenario in mind. The given sentence is about the fact that the government is planning to implement the second set of measures including curb on imports of non-essential items to increase the market value of rupee to 68-70 level against the US dollar. Only Course of action I is the one that is relevant to the given statement as it deals with the fact that in addition to several measures the Centre has also prepared a list of non-essential items (already stated in the given statement) and has also drawn up a list of goods whose exports can be boosted with a little policy intervention. As it is in the same direction, thus, it is an appropriate answer choice. Since, this particular action can help in achieving the desired outcome of increasing the market value of the rupee thus, it is the appropriate course of action. Both Courses of action II and III are irrelevant as in II, it is stated that a group headed by Commerce Secretary has completed the task on finalizing the list. It is nowhere relevant to the fact of increasing the market value of rupee. As far as Course of action III is concerned, it is a very generic statement and is also not in the same direction regarding the statement. It is a very general sentence comparing the currencies. Thus, the correct answer is option 2.