# How to solve ‘Cause & Effect’ questions in banking exams?

The best practice to build command over this section is ‘practice’

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Reasoning section in banking exams conducted by IBPS, SBI, RBI, NABARD, etc. is considered one of the scoring sections as the questions do not involve any formulae. The right strategy and smart approach can prove beneficial in improving your score. The best practice to build command over this section is ‘practice’. The more you practice; the better is your score.

Overview of Cause & Effect

• Cause and Effect is a major area of the Reasoning Ability section in banking exams.
• In such questions, you have to determine whether a given event is the cause or the effect of some other event.
• This topic tests your analytical and logical reasoning ability skills.
• Causes are conditions under which events happen. Let’s try to figure out the causes for the following.
1. The security was increased near the President’s house.
2. People are buying a particular brand of refrigerators.

The probable causes for the above events are:

1. Threat was reported near that area.
2. There was a high discount on that brand of refrigerators.

## Sufficient & necessary conditions for Cause and Effect questions

• The cause is the sufficient condition.
• A necessary condition is one that must be satisfied for the occurrence of an event.
• A cause is the reason for something to happen.
• An effect is the consequence.

Format of Cause and Effect questions

In banking exams, cause and effect questions are featured in the following way.

Two statements are given. These may be related to each other in cause and effect form or might be independent statements.

Following options are given for the choice of answer:

1. If statement (I) is the cause and statement (II) is the effect.
2. If statement (II) is the cause and statement (I) is the effect.
3. If both the statements (I) and (II) are independent causes.
4. If both the statements (I) and (II) are effects of some independent causes.
5. If both the statements (I) and (II) are effects of some common cause.

Let us understand the strategy to solve questions with the help of examples.

Example 1

Statements:

1. The weather department has predicted heavy rainfall in the coming week.
2. The stores in the local market have introduced new types of umbrellas and rain coats.

Options:

1. Statement 1 is the cause and statement 2 is its effect.
2. Statement 2 is the cause and statement 1 is its effect.
3. Both the statements 1 and 2 are independent causes.
4. Both the statements 1 and 2 are effects of independent causes.
5. Both the statements 1 and 2 are effects of some common cause.

Now let us look at the correct approach.

The stores in the local market have come up with new umbrellas and rain coats because of rainfall predicted in the coming week. So, we can conclude that statement 1is the cause and statement 2 is its effect.

Example 2

Statements:

1. Amit was not granted a visa to Europe.
2. Amit’s flight was delayed by twenty hours.

Options:

1. Statement 1 is the cause and statement 2 is its effect.
2. Statement 2 is the cause and statement 1 is its effect.
3. Both the statements 1 and 2 are independent causes.
4. Both the statements 1 and 2 are effects of independent causes.
5. Both the statements 1 and 2 are effects of some common cause.

Explanation: Here, both statements are clearly effects of independent causes. Amit might not have been granted a visa due to some reason. However, he had no part to play in his flight getting delayed. The two reasons cannot be related even though they involve the same person.

Important tips:

(a) If event 1 is in present perfect tense and event 2 is in future tense. Eliminate choice (1) and (3). Event 2 cannot be the cause.
(b) If event 1 is in present perfect tense and event 2 is in present continuous tense, this mean event 1 occurs before event 2. Therefore, eliminate choice (1) and (3).
We hope these suggestions and tips help you in solving cause and effect questions asked in banking exams. Keep practicing for the upcoming baking exams. You can try CL’s FREE Reasoning Ability tests.