ENGLISH -- IBPS CLERKS V -- DIFFICULTY LEVEL -2

ref rbi 814

Test-II: English Language

Directions (Q. 81-88): Read the passage carefully and answer the questions given below it. Certain words/phrases are given in bold to help you locate them while answering some of the questions.

The economy suddenly seems injected with a huge does of optimism, thanks to an unprecedented electoral verdict. Prime Minister Narendra Modi heads a government which enjoys an absolute majority, an outcome not witnessed for decades. But he now faces a twin challenge. Firstly, the burden of expectations is huge, and secondly, the macroeconomic conditions are quite adverse. I am sure he will be able to overcome both these challenge since he has the political capital, his long experience as Chief Minister and a committed team determined to succeed. His maiden speech in Parliament also provided a glimpse of some contours of a grand plan for social and economic development.

The Union Budget to be presented in July offers an opportunity to articulate an ambitious economic vision of this government. The road map to that vision could span several years, but all the steps must be spelt out in its detail meticulously.

The immediate and first priority is to sharply reduce inflation, and inflationary expectations. Even though the country has had a record production of food grains and horticulture, the spectre of EI Nino looms large. Hence three specific actions are worth considering. Firstly, sell excess stock from the Food Corporation of India’s buffer stock. Secondly, reduce import duties on food and other agricultural items. And thirdly, resits increasing the Minimum Support Price, a decision often dictated by politics rather than economics. The government may also consider capping the hikes in administered prices like railway freight, entry taxes and tolls, all of which contribute to food and general inflation.

The second priority is fiscal consolidation. More than a third of the government’s revenues go towards interest payments alone. The large deficit and borrowing puts upward pressure on interest rates, and on inflation as well. Hence reducing the deficit should be a priority through a combination of revenue and expenditure measures. The former requires the nationwide rollout of Goods and Services Tax (GST), which will add 1% to the GDP growth rate, and also increase tax collection. The large fuel and fertilizer subsidies need to be trimmed, and an alternative method used to directly target and compensate the needy end-users. We must return to the virtuous cycle of low inflation and interest rates, resulting in higher savings and investment, leading to higher growth.

The third priority is to urgently revive growth of the manufacturing sector, so that it rejuvenates investment, job creation and skill-building. This calls for action on several fronts such as making the approval and clearance processes more efficient, restoring the electricity sector, fast-tracking the stalled infrastructure projects and easing hurdles in land acquisition and environment clearances. We need to gain the status of a global manufacturing hub, opportunity that is there for the taking. China’s labour force will soon plateau, and this opens a window for India. But this will require large-scale skill building through training, vocational schools and apprenticeships.

The fourth priority is to enhance productivity and growth in agriculture. Farm yields are stagnant and below world average in many crops. Increasing these will require significant inputs of science and technology, better water management, crop diversification, rationalising fertilizer subsidies and reducing supply chain inefficiencies between farm and work Prime Minister has already alluded to a Green Revolution 2.0 in his speech.

81.       What, according to the author, should be done to annul the threat of EI Nino?

(A) The minimum support price should not be allowed to increase.

(B) Agriculture scientists should be asked to develop a new variety of EI Nino-resistant seeds.

(C) Excess stock from the FCI should be sold out.

a) Only (A) and (B)                b) Only (B) and (C)                c) Only (B)

d) Only (A) and (C)                e) All (A), (B) and (C)

82.       The burden of expectation is huge for Mr Modi and the macroeconomic conditions are quite adverse. How will he be able to overcome both these challenges?

(A) As he has good command over his ministers he will ask them help overcome these challenges.

(B) By taking advantage of his vast political experience.

(C) By using his political clout he will develop good economic relations with foreign investors.

a) Only (A)                 b) Only (B)                 c) Only (C)     d) Both (A) and (B)

e) All (A) (B) and (C)

83.       Why does the author lay emphasis on fiscal consolidation? Select the most suitable answer on the basis of the given passage.

a) Because fiscal consolidation puts a check on interest payments

b) Because fiscal consolidation brings financial stability and creates a more desirable financial position.

c) Because the purpose of fiscal consolidation is to minimise deficit.

d) Because through financial consolidation more revenue can be generated and economy can be improved.

e) All the above

84.       What, according to the author, is/are the factors responsible for food price hike and general inflation? Reply in the context of the passage.

a) Uncertain monsoon and illiteracy of Indian farmers

b) Marketing mismanagement and increasing interference of middlemen

c) Railway freight, entry taxes and tolls  

d) Lack of storage facilities for food grains and government’s inaction

e) All the above

85.       Which of the following has not been suggested by the author for revenue generation?

(A) Cessation of fuel and fertilizer subsidies

(B) The rollback of Goods and Services Tax

(C)  Bring down interest rates and inflation at the lowest possible level.

a) Only (A) and (C)                b) Only (B)                 c) Only (C)

d) Only (A) and (B)                e) None of these

86.       Which of the following is the central theme of the passage? Select the most appropriate answer.

a) The new government’s agenda for social and economic development

b) Unprecedented electoral verdict and high public expectations

c) Challenges before the new government

d) Four most important priorities of the newly formed government

e) None of these

87.       Which of the following statements is/are definitely true in the context of the passage?

(A) The road map to ambitious economic vision of the incumbent government will last for many years.

(B) The government’s top priority is to contain inflation.

(C)  The govt has to pay more than 33% of its total revenue as interest on outstanding debt/loans.

a) Only (A) and (B)                b) Only (B) and (C)                c) Only (A) and (C)   

d) Only (C)                             e) Only (E)

88.       Which of the following best explains the meaning of the two words ‘rejuvenate’ and ‘stall’ taken together in the context of the passage?

a) Refresh an old system                                b) Breathe new life to a dead body

c) Reinvigorate a crawling thing       d) Work together to maximize output

e) Invite foreign investors to revive economy

Directions (Q.89-93): Rearrange the following seven sentences (A), (B), (C), D), (E), (F) and (G) in the proper sequence to form a meaningful paragraph and then answer the questions given below.

(A) The government holds the entire capital of the RBI and appoints the Governor and the members of the Central Board and has the power to remove them.

(B)  Similarly, there are also provisions for appeal in respect of cancellation of banking licence and refusal of certificate regarding floating charge on assets.

(C)  The Reserve Bank is the primary regulator of banks.

(D) Thus the government can exercise control over banks by influencing decision-making by the Reserve Bank and has also got appellate authority in respect of several matters in which the Reserve Bank has been conferred the power to decide at the first instance.

(E) The government has also the power to issue directions to the Reserve Bank whenever considered necessary in public interest after consultation with the Governor.

(F)  But the Central Government has also been conferred extensive powers under the RBI Act and Banking Regulation Act either directly or indirectly over the banks.

(G)  Thus, under the Banking Regulation Act appeal lies with the Central Government on removal of managerial personnel.

89.       Which of the following should be the FIRST sentence after rearrangement? 

a)  C                b) G                 c) F                  d) A                 e) D

90.       Which of the following should be the SECOND sentence after rearrangement?

a) B                 b) A                 c) F                  d) E                 e) C

91.       Which of the following should be the LAST (SEVENTH) sentence after rearrangement?

a) D                 b) F                 c) A                 d) G                 e) B

92.       Which of the following should be the FIFTH sentence after rearrangement?

a) E                 b) D                 c) B                 d) C                 e) A

93.       Which of the following should be the THIRD sentence after rearrangement?

a) G                 b) B                 c) D                 d) A                 e) C

Directions (Q. 94-98): In each question below, two sentences or parts of sentences are given with two blank spaces between them. From the three parts/sentences denoted by (A), (B) and (C) given below each, find out which two can fill up the blanks in proper sequences (i.e. the order in which these are given in the answer options) to make the sentence/group of sentences meaningfully complete.

94.       Almost every metro rail project in the country has overshot the projected cost. Companies often tend (__________) (__________) would be relatively inexpensive.

(A) to balance subsidy and revenue is understandable, but high prices

(B) to convince funding agencies that travel by metro rail

(C) to underestimate the cost and inflate user-figures

a) Only (A) and (B)                b) Only (C) and (B)                c) Only (B) and (A)

d) Only (B) and (C)                e) Only (A) and (C)

95.       The Centre’s decision to allow the Gujarat government to raise the height of the Narmada dam by 17 metres is threatening to snowball proper rehabilitation and (__________) (__________) rehabilitation and resettlement of the families to be displaced.

(A) urging the government to reverse the decision and ensure

(B) into a major controversy with the CPI(M)

(C) criticism over the sudden move; questions are also being asked in several quarters about.

a) Only (A) and (C)                b) Only (B) and (C)                            c) Only (C) and (A)   

d) Only (B) and (A)                e) Either (C) and (A) or (B) and (C)

96.       A lobby group representing more than 800 power and electrical equipment makers has requested the new govt (_________) (__________) to compete with surging imports complete with surging imports.

(A) to look into issues those plague the sector

(B) to ensure timely completion of power projects and provide a level playing field

(C) to allow domestic manufactures

a) Only (A) and (C)                            b) Only (A) and (B)                c) Only (B) and (C)

d) Only(C) and (B)                 e) Either (A) and (B) or (C) and (B)

97.       The finance ministry is scripting (_________) (__________) out of a prolonged slump.

(A) barring a few strategic ones, as part of plans to stimulate overseas interest and help lift the economy

(B) a liberal foreign investment policy framework that will allow at least 49% investment in all sectors.

(C) without requiring time-consuming govt approval

a) Only (B) and (A)                b) Only (C) and (B)                c) Only (A) and (B)      

d) Only (B) and (C)                e) None of these

98.       The finance ministry has drawn up a strategy to review the dormant primary markets through a plan to encourage greater retail participation. This entails some tax breaks, a bigger share for retail investors (__________) (__________) that the Narendra Modi government’s policies will be good for business and growth.

(A) In initial public offerings (IPOs) and moving quickly to sell shares at attractive prices

(B) in three to four large public sector companies to get the scheme rolling amid a stock market boom

(C) that stems from investor optimism

a) Only (C) and (B)                b) Only (A) and (C)                c) Only (B) and (A)    

d) Either (A) and (B) or (B) and (C)             

e) None of these

Directions (Q. 99-103): In the following questions, a sentence has been given with some of its parts in bold. To make the sentence grammatically correct, you have to replace the bold part with the correct alternative given below. If the sentence is correct as it is, give 5) as your answer (ie No correction required).

99.       Corporate India witnessed the launch of the all-new Learn Trak Learning Management System (LMS), which is a leading eLearning implementation partner of large and fast-growing companies that had revolutionised the online training market with its learning solutions.

a) which has revolutionised the online training market

b) that has been online training market revolutionised

c) who was revolutionised to online training market

d) that have revolutionised the online training market

e) No correction required

100.     Power, coal and renewal energy minister is planning to realign various functions of his ministry and has considered of putting all the three in the same building for better cohesiveness and helping resolve raging disputes.

a) is considering about how to put all the three

b) is considering putting all three

c) has been considered to put all three

d) has put all the three to consider

e) No correction required

101.     Nripendra Misra has official name of principal secretary of PM Narendra Modi after the government issued an ordinance, clearing the way for the appointment.

a) was official name of principal secretary of

b) was officially named the principal secretary for

c) was officially named principal secretary to

d) is the official name of principal secretary of

e) No correction required

102.     As the tortoise tucks its feet and head inside the shell and will not come out even though you may break the shell into pieces, even so the character of the man who has control over his motives and organs, is unchangeably established.

a) though you break                            b) nevertheless you should break   

c) however, you cannot break            d) despite breaking off      

e) No correction required

103.     One of the great delusions of modern times is the prevailing believe that we are more civilized than our ancestors.

a) times is the prevailing belief                                 b) times are the prevailing belief

c) times are the prevailing believe                d) time’s prevailed belief      

e) No correction required

Directions (Q. 104-110): In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the option given against each number and full up the blanks with appropriate words to make the paragraph meaningfully complete.

Chances of a married couple sitting across the table, with one saying, “I want a divorce,” and the other saying, “Fine, let’s go ahead’, are (104). Usually, one spouse sets the ball rolling on a (105) while the other resists. The person who resists will either reluctantly let go or will fight it out but not without seeking his or her due share. Similarly, when promoters attempt to delist their companies, minority shareholders often resist such (106) but with no success. “Delisting is like a forced divorce’, a senior capital market regulatory official said at a meeting. “The investor has the right to ask what is due to him. If the promoter can pay, go for (107). If you are not able to pay, remain listed”.

Sebi’s stance on this stems from its concern for minority shareholders who it (108) should not lose out in the bargain. Delisting which leads to the removal of a company’s stock from the (109), favours promoters, enabling them to exercise greater control over the business. Once the stock is delisted, minority shareholders will not enjoy the luxury of (110) offered by stock exchanges. So the regulator wants to ensure that such shareholders gain the most before delisting.

104.     a. impromptu              b. impressive              c. impracticable          d. impulsive

e. improbable

105.     a. sequence                 b. separation               c. disjunction              d. vassal             

e. rubbish

106.     a. moves                      b. repose                     c. undertaking             d. bounty

e. cessation

107.     a. divorce                    b. attachment              c.  rupture                  d. marriage

e. association

108.     a. esteem                     b. redeem                    c. reckons                    d. reciprocate

e. displace 

109.     a. trading                     b. bourses                    c. charge                    d. field                

e. network

110.     a. reimbursement        b. discharge                c. levity                       d. volatility          

e. liquidity

answers

81. d                82. b                83. c                84. c                85. b     

86. c                87. b                88. c

(89 -93): CFAEDGB

89. a                90. c

91. e                92. b                93. d                94. b                95. d      

96. c                97. a                           

98. e; (A), (B) and (C)

99.  d               100. b             

101. c              102. e              103. a              104. e              105. b     

106. a              107. a              108. c              109. b              110. e