1. The local co-operative credit society has decided to stop giving loans to farmers with immediate effect. 2. A large number of credit society members have withdrawn major part of their deposits from the credit society.

The local co-operative credit society has decided to stop giving loans to farmers with immediate effect.
A large number of credit society members have withdrawn major part of their deposits from the credit society.

[A].	Statement I is the cause and statement II is its effect
[B].	Statement II is the cause and statement I is its effect
[C].	Both the statements I and II are independent causes
[D].	Both the statements I and II are effects of independent causes
[E].	Both the statements I and II are effects of some common cause

Answer: Option B

Explanation:

Clearly, withdrawal of funds by society members is bound to reduce the lending power of the society.