IIFT Mock Test -8


126 Questions MCQ Test IIFT Mock Test Series 2020 | IIFT Mock Test -8


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This mock test of IIFT Mock Test -8 for CAT helps you for every CAT entrance exam. This contains 126 Multiple Choice Questions for CAT IIFT Mock Test -8 (mcq) to study with solutions a complete question bank. The solved questions answers in this IIFT Mock Test -8 quiz give you a good mix of easy questions and tough questions. CAT students definitely take this IIFT Mock Test -8 exercise for a better result in the exam. You can find other IIFT Mock Test -8 extra questions, long questions & short questions for CAT on EduRev as well by searching above.
QUESTION: 1

Which article is related to eligibility of the President?

Solution:
QUESTION: 2

Stagflation refers to a situa­tion which is marked by

Solution:
QUESTION: 3

What is the theme of 2016 World Sight Day (WSD)?

Solution:
QUESTION: 4

Who has been appointed as new DG of Directorate General of Foreign Trade (DGFT)?

Solution:
QUESTION: 5

Which Indian film-maker has been conferred with the French honour of ‘Knight in the National Order of Merit’?Mani Ratnam

Solution:
QUESTION: 6

Which city hosted the opening ceremony for Under-17 FIFA football world cup in India?

Solution:
QUESTION: 7

Who has been appointed as the new Vice-Chancellor of Nalanda University?

Solution:
QUESTION: 8

The atmospheric layer farthest from the Earth's surface is known as

Solution:
QUESTION: 9

The temperate grasslands of South America are called

Solution:
QUESTION: 10

“Tianyan” the world’s largest filled aperture radio telescope has built by which country?

Solution:
QUESTION: 11

Select the correct statement

Solution:
QUESTION: 12

The Kigali doctrine amended:

Solution:
QUESTION: 13

Which among the following countries has become the first country in the world to ban metals mining nationwide?

Solution:
QUESTION: 14

Which state government has implemented ‘Green Protocol’ for weddings?

Solution:
QUESTION: 15

In February 2018, 'Three Billboards Outside Ebbing, Missouri' won the best film award at the 71st ………………..

Solution:
QUESTION: 16

Who among the following was, in February 2018, named the EY Entrepreneur of the Year 2017 for solutions in lending, life and general insurance and wealth advisory?

Solution:
QUESTION: 17

In April 2017 Justice Indira Banerjee was appointed by the President as the Chief Justice of ………… High Court. Ms. Justice, thus becoming the second woman to head the charted court.

Solution:
QUESTION: 18

The comparative cost theory of International trade was developed by:

Solution:
QUESTION: 19

Who among the following was honored with the 'Scientific and Engineering Academy Award' at the Oscars Scientific and Technical Awards in February 2018 in California?

Solution:
QUESTION: 20

Which of the following was, in February 2018, recognised as 'Startup of the Year 2017' at the 7th Small Business Awards held in New Delhi in February 2018?

Solution:
QUESTION: 21

Which is the correct Country - Currency Match?

Country                                    Currency

a. Nigeria                                  i. Taka

b. Bangladesh                           ii. Peso

c. Iran                                       iii. Naira

d. Philippines                             iv. Rial

Solution:
QUESTION: 22

Name the first Miss America of Indian descent:

Solution:
QUESTION: 23

The Headquarters of the European Union is located at?

Solution:
QUESTION: 24

The Assamese and Manipuri language versions of Prime Minister Narendra Modi's Official website, www.pmindia.gov.in were launched in January 2018. With this launch, the PMINDIA website is now available in ………….. regional languages.

Solution:
QUESTION: 25

This American cinematographer was nominated in January 2018 for the 90th Academy Awards 2018 for her work in the film 'Mudbound', thus becoming the first female cinematographer to receive an Oscar nomination in the 89-year-old history of the Awards. Identify the person.

Solution:
QUESTION: 26

Which of the following is one of the Millennium Development Goals fixed by the United Nations Organization (UNO)?

Solution:
QUESTION: 27

Corporal Jyoti Prakash Nirala, an Indian Air Force Garud commando, was posthumously honored with India’s highest peacetime military decoration for exhibiting bravery in fighting the militants, at the 69th Republic Day 2018. Identify the award.

Solution:
QUESTION: 28

Bollywood superstar …………. was honored with the 24th Crystal Award at the World Economic Forum in Davos in January 2018 for his leadership in championing children’s and women’s rights in India.

Solution:
QUESTION: 29

DIRECTIONS for the question (29 to 44): Read the passage and answer the question based on it.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: die shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were 10 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well-organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early 1950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to fight through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods were first unloaded into a transit shed and then loaded onto a ship. 'Public loader" work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the OLA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963-4 and 1975-6, die number of days worked by longshoremen m Manhattan went from 1.4 million to 127,041.

Containers rapidly captured die transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted containerization made it dear it brought big benefits of efficiency and cost The extraordinary growth of the Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from government - both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company Pan-Atlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques m supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. Pan-Atlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a 17-foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade. Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in lengths of 10,20,30 or 40 feet would be eligible for handouts.

Identify the correct statement

Solution:

Option A is wrong because it was 10 per cent of the value of US imports and not imports in general.

Option B is correct: refer to 5th Para, last few lines.

Option C is wrong because American imports from Vietnam did not increase. 

Option D is wrong because the reason for using 24 feet container is wrong.

QUESTION: 30

DIRECTIONS for the question: Read the passage and answer the question based on it.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: die shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were 10 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well-organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early 1950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to fight through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods were first unloaded into a transit shed and then loaded onto a ship. 'Public loader" work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the OLA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963-4 and 1975-6, die number of days worked by longshoremen m Manhattan went from 1.4 million to 127,041.

Containers rapidly captured die transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted containerization made it dear it brought big benefits of efficiency and cost The extraordinary growth of die Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from government - both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company Pan-Atlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques m supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. Pan-Atlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a 17-foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade. Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in lengths of 10,20,30 or 40 feet would be eligible for handouts.

Identify the false statement:

Solution:

In 4th Para line 7, it talks about two stages of loading and unloading, not the three stages therefore option ‘A’ is false

QUESTION: 31

DIRECTIONS for the question: Read the passage and answer the question based on it.

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: die shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were 10 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well-organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early 1950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to fight through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods were first unloaded into a transit shed and then loaded onto a ship. 'Public loader" work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the OLA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963-4 and 1975-6, die number of days worked by longshoremen m Manhattan went from 1.4 million to 127,041.

Containers rapidly captured die transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted containerization made it dear it brought big benefits of efficiency and cost The extraordinary growth of die Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from government - both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company Pan-Atlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques m supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. Pan-Atlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a 17-foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade. Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in lengths of 10,20,30 or 40 feet would be eligible for handouts.

The emergence of containerization technology in early seventies resulted in:

Solution:

Option A is wrong because the adoption was not immediate.

Option B is wrong because prices did not fall instantly.

Option C is correct: refer to Para 5th, lines 1-7.

QUESTION: 32

DIRECTIONS for the question : Read the passage and answer the question based on it. 

Before the internet, one of the most rapid changes to the global economy and trade was wrought by something so blatantly useful that it is hard to imagine a struggle to get it adopted: die shipping container. In the early 1960s, before the standard container became ubiquitous, freight costs were 10 per cent of the value of US imports, about the same barrier to trade as the average official government import tariff. Yet in a journey that went halfway round the world, half of those costs could be incurred in two ten-mile movements through the ports at either end. The predominant 'break-bulk' method, where each shipment was individually split up into loads that could be handled by a team of dockers, was vastly complex and labour-intensive. Ships could take weeks or months to load, as a huge variety of cargoes of different weights, shapes and sizes had to be stacked together by hand. Indeed, one of the most unreliable aspects of such a labour-intensive process was the labour. Ports, like mines, were frequently seething pits of industrial unrest. Irregular work on one side combined with what was often a tight-knit, well-organized labour community on the other.

In 1956, loading break-bulk cargo cost $5.83 per ton. The entrepreneurial genius who saw the possibilities for standardized container shipping, Malcolm McLean, floated his first containerized ship in that year and claimed to be able to shift cargo for 15.8 cents a ton. Boxes of the same size that could be loaded by crane and neatly stacked were much faster to load. Moreover, carrying cargo in a standard container would allow it to be shifted between truck, train and ship without having to be repacked each time.

But between McLean's container and the standardization of the global market were an array of formidable obstacles. They began at home in the US with the official Interstate Commerce Commission, which could prevent price competition by setting rates for freight haulage by route and commodity, and the powerful International Longshoremen's Association (ILA) labour union. More broadly, the biggest hurdle was achieving what economists call 'network effects': the benefit of a standard technology rises exponentially as more people use it To dominate world trade, containers had to be easily interchangeable between different shipping lines, ports, trucks and railcars. And to maximize efficiency, they all needed to be the same size. The adoption of a network technology often involves overcoming the resistance of those who are heavily invested in the old system. And while the efficiency gains are clear to see, there are very obvious losers as well as winners. For containerization, perhaps the most spectacular example was the demise of New York City as a port.

In the early 1950s, New York handled a third of US seaborne trade in manufactured goods. But it was woefully inefficient, even with existing break-bulk technology: 283 piers, 98 of which were able to handle ocean-going ships, jutted out into the river from Brooklyn and Manhattan. Trucks bound for the docks had to fight through the crowded, narrow streets of Manhattan, wait for an hour or two before even entering a pier, and then undergo a laborious two-stage process in which the goods were first unloaded into a transit shed and then loaded onto a ship. 'Public loader" work gangs held exclusive rights to load and unload on a particular pier, a power in effect granted by the OLA, which enforced its monopoly with sabotage and violence against competitors. The ILA fought ferociously against containerization, correctly foreseeing that it would destroy their privileged position as bandits controlling the mountain pass. On this occasion, bypassing them simply involved going across the river. A container port was built in New Jersey, where a 1500-foot wharf allowed ships to dock parallel to shore and containers to be lifted on and off by crane. Between 1963-4 and 1975-6, die number of days worked by longshoremen m Manhattan went from 1.4 million to 127,041.

Containers rapidly captured die transatlantic market, and then the growing trade with Asia. The effect of containerization is hard to see immediately in freight rates, since the oil price hikes of the 1970s kept them high, but the speed with which shippers adopted containerization made it dear it brought big benefits of efficiency and cost The extraordinary growth of die Asian tiger economies of Singapore, Taiwan, Korea and Hong Kong, which based their development strategy on exports, was greatly helped by the container trade that quickly built up between the US and east Asia. Ocean-borne exports from South Korea were 2.9 million tons in 1969 and 6 million in 1973, and its exports to the US tripled.

But the new technology did not get adopted all on its own. It needed a couple of pushes from government - both, as it happens, largely to do with the military. As far as the ships were concerned, the same link between the merchant and military navy that had inspired the Navigation Acts in seventeenth-century England endured into twentieth-century America. The government's first helping hand was to give a spur to the system by adopting it to transport military cargo. The US armed forces, seeing the efficiency of the system, started contracting McLean's company Pan-Atlantic, later renamed Sea-land, to carry equipment to the quarter of a million American soldiers stationed in Western Europe. One of the few benefits of America's misadventure in Vietnam was a rapid expansion of containerization. Because war involves massive movements of men and material, it is often armies that pioneer new techniques m supply chains.

The government's other role was in banging heads together sufficiently to get all companies to accept the same size container. Standard sizes were essential to deliver the economies of scale that came from interchangeability - which, as far as the military was concerned, was vital if the ships had to be commandeered in case war broke out This was a significant problem to overcome, not least because all the companies that had started using the container had settled on different sizes. Pan-Atlantic used 35-foot containers, because that was the maximum size allowed on the highways in its home base in New Jersey. Another of the big shipping companies, Matson Navigation, used a 24-foot container since its biggest trade was in canned pineapple from Hawaii, and a container bigger than that would have been too heavy for a crane to lift. Grace Line, which largely traded with Latin America, used a 17-foot container that was easier to truck around winding mountain roads.

Establishing a US standard and then getting it adopted internationally took more than a decade. Indeed, not only did the US Maritime Administration have to mediate in these rivalries but also to fight its own turf battles with the American Standards Association, an agency set up by the private sector. The matter was settled by using the power of federal money: the Federal Maritime Board (FMB), which handed out public subsidies for shipbuilding, decreed that only the 8 x 8-foot containers in lengths of 10,20,30 or 40 feet would be eligible for handouts.

Match the following set of words:

Set A                      Set B

a. ILA                i. New Jersey
b. FMB             ii. Mountain roads
c. Grace Line   iii. Dockers
d. McLean        iv. Standardization

Solution:

Grace line company moved around mountain roads ( second last para), FMB standardized the sizes of the containers (last Para), ILA dealt with Dockers (1st and 3rd Para).  

QUESTION: 33

DIRECTIONS for the question: Read the passage and answer the question based on it.

I have tried to introduce into the discussion a number of attributes of consumer behaviour and motivations, which I believe are important inputs into devising a strategy for commercially viable financial inclusion. These related broadly to the (i) the sources of livelihood of the potential consumer segment for financial inclusion (ii) how they spend their money, particularly on non-regular items (iii) their choices and motivations with respect to saving and (iv) their motivations for borrowing and their ability to access institutional sources of finance for their basic requirements. In discussing each of these sets of issues, I spent some time drawing implications for business strategies by financial service providers. In this section, I wilt briefly highlight, at the risk of some repetition, what I consider to be the key messages of the lecture.

The first message emerges from the preliminary discussion on the current scenario on financial inclusion, both at the aggregate level and across income categories. The data suggest that even savings accounts, the most basic financial service, have low penetration amongst the lowest income households. I want to emphasize that we are not talking about Below Poverty Line households only; Rs. 50,000 per year in 2007, while perhaps not quite middle class, was certainly quite far above the official poverty line. The same concerns about lack of penetration amongst the lowest income group for loans also arise. To reiterate the question that arises from these data patterns: is this because people can't access banks or other service providers or because they don't see value in doing so? This question needs to be addressed if an effective inclusion strategy is to be developed.

The second message is that the process of financial inclusion is going to be incomplete and inadequate if it is measured only in terms of new accounts being opened and operated. From the employment and earning patterns, there emerged a sense that better access to various kinds of financial services would help to increase the livelihood potential of a number of occupational categories, which in turn would help reduce the income differentials between these and more regular, salaried jobs. The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter.

The third message emerges from the analysis of expenditure patterns is the significance of infrequent, but quantitatively significant expenditures like ceremonies and medical costs. Essentially, dealing with these kinds of expenditures requires either low-cost insurance options, supported by a correspondingly low-cost health care system or a low level systematic investment plan, which allows even poor households to create enough of a buffer to deal with these demands as and when they arise. As has already been pointed out, it is not as though such products are not being offered by domestic financial service providers. It is really a matter of extending them to make them accessible to a very large number of lower income households, with a low and possibly uncertain ability to maintain regular contributions.

The fourth message comes strongly from the motivations to both save and borrow, which, as one might reasonably expect, significantly overlap with each other. It is striking that the need to deal with emergencies, both financial and medical, plays such an important role in both sets of motivations. The latter is, as has been said, amenable to a low-coat mass insurance scheme, with the attendant service provision. However, the former, which is a theme that recurs through the entire discussion on consumer characteristics, certainly suggests that the need for some kind of income and consumption smoothing product is a significant one in an effective financial inclusion agenda. This, of course, raises broader questions about the role of social safety nets, which offer at least some minimum income security and consumption smoothing. How extensive these mechanisms should be, how much security they should offer and for how long and how they should be financed are fundamental policy questions that go beyond the realm of the financial sector. However, to the extent that risk mitigation is a significant financial need, it must receive due attention of any meaningful financial inclusion strategy, in a way which provides practical answers to all these three questions.

The fifth and final message is actually the point I began the lecture with. It is the critical importance of the principle of commercial viability. Every aspect of a financial inclusion strategy - whether it is the design of products and services or the delivery mechanism -needs to be viewed in terms of the business opportunity that it offers and not as a deliverable that has been imposed on the service provider. However, it is also important to emphasize that commercial viability need not necessarily be viewed in terms of immediate cost and profitability calculations. Like in many other products, financial services also offer the prospect of a life-cycle model of marketing. Establishing a relationship with first-time consumers of financial products and services offers the opportunity to leverage this relationship into a wider set of financial transactions as at least some of these consumers move steadily up the income ladder. In fact, in a high growth scenario, a high proportion of such households are likely to move quite quickly from very basic financial services to more and more sophisticated ones. In other words, the commercial viability and profitability of a financial inclusion strategy need not be viewed only from the perspective of immediacy. There is a viable investment dimension to it as well.

Q. Which of the following statements is incorrect ?

Solution:

As per 2nd Para, 5th line, it is clear that savings accounts are not only less in the BPL category but also in lower income group category. 

Therefore C is incorrect and hence the answer.

QUESTION: 34

DIRECTIONS for the question: Read the passage and answer the question based on it.

I have tried to introduce into the discussion a number of attributes of consumer behaviour and motivations, which I believe are important inputs into devising a strategy for commercially viable financial inclusion. These related broadly to the (i) the sources of livelihood of the potential consumer segment for financial inclusion (ii) how they spend their money, particularly on non-regular items (iii) their choices and motivations with respect to saving and (iv) their motivations for borrowing and their ability to access institutional sources of finance for their basic requirements. In discussing each of these sets of issues, I spent some time drawing implications for business strategies by financial service providers. In this section, I wilt briefly highlight, at the risk of some repetition, what I consider to be the key messages of the lecture.

The first message emerges from the preliminary discussion on the current scenario on financial inclusion, both at the aggregate level and across income categories. The data suggest that even savings accounts, the most basic financial service, have low penetration amongst the lowest income households. I want to emphasize that we are not talking about Below Poverty Line households only; Rs. 50,000 per year in 2007, while perhaps not quite middle class, was certainly quite far above the official poverty line. The same concerns about lack of penetration amongst the lowest income group for loans also arise. To reiterate the question that arises from these data patterns: is this because people can't access banks or other service providers or because they don't see value in doing so? This question needs to be addressed if an effective inclusion strategy is to be developed.

The second message is that the process of financial inclusion is going to be incomplete and inadequate if it is measured only in terms of new accounts being opened and operated. From the employment and earning patterns, there emerged a sense that better access to various kinds of financial services would help to increase the livelihood potential of a number of occupational categories, which in turn would help reduce the income differentials between these and more regular, salaried jobs. The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter.

The third message emerges from the analysis of expenditure patterns is the significance of infrequent, but quantitatively significant expenditures like ceremonies and medical costs. Essentially, dealing with these kinds of expenditures requires either low-cost insurance options, supported by a correspondingly low-cost health care system or a low level systematic investment plan, which allows even poor households to create enough of a buffer to deal with these demands as and when they arise. As has already been pointed out, it is not as though such products are not being offered by domestic financial service providers. It is really a matter of extending them to make them accessible to a very large number of lower income households, with a low and possibly uncertain ability to maintain regular contributions.

The fourth message comes strongly from the motivations to both save and borrow, which, as one might reasonably expect, significantly overlap with each other. It is striking that the need to deal with emergencies, both financial and medical, plays such an important role in both sets of motivations. The latter is, as has been said, amenable to a low-coat mass insurance scheme, with the attendant service provision. However, the former, which is a theme that recurs through the entire discussion on consumer characteristics, certainly suggests that the need for some kind of income and consumption smoothing product is a significant one in an effective financial inclusion agenda. This, of course, raises broader questions about the role of social safety nets, which offer at least some minimum income security and consumption smoothing. How extensive these mechanisms should be, how much security they should offer and for how long and how they should be financed are fundamental policy questions that go beyond the realm of the financial sector. However, to the extent that risk mitigation is a significant financial need, it must receive due attention of any meaningful financial inclusion strategy, in a way which provides practical answers to all these three questions.

The fifth and final message is actually the point I began the lecture with. It is the critical importance of the principle of commercial viability. Every aspect of a financial inclusion strategy - whether it is the design of products and services or the delivery mechanism -needs to be viewed in terms of the business opportunity that it offers and not as a deliverable that has been imposed on the service provider. However, it is also important to emphasize that commercial viability need not necessarily be viewed in terms of immediate cost and profitability calculations. Like in many other products, financial services also offer the prospect of a life-cycle model of marketing. Establishing a relationship with first-time consumers of financial products and services offers the opportunity to leverage this relationship into a wider set of financial transactions as at least some of these consumers move steadily up the income ladder. In fact, in a high growth scenario, a high proportion of such households are likely to move quite quickly from very basic financial services to more and more sophisticated ones. In other words, the commercial viability and profitability of a financial inclusion strategy need not be viewed only from the perspective of immediacy. There is a viable investment dimension to it as well.

Q. Which of the following statements is correct?

Solution:

As per 3rd Para lines 7—10: The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter.

QUESTION: 35

DIRECTIONS for the question: Read the passage and answer the question based on it.

I have tried to introduce into the discussion a number of attributes of consumer behaviour and motivations, which I believe are important inputs into devising a strategy for commercially viable financial inclusion. These related broadly to the (i) the sources of livelihood of the potential consumer segment for financial inclusion (ii) how they spend their money, particularly on non-regular items (iii) their choices and motivations with respect to saving and (iv) their motivations for borrowing and their ability to access institutional sources of finance for their basic requirements. In discussing each of these sets of issues, I spent some time drawing implications for business strategies by financial service providers. In this section, I wilt briefly highlight, at the risk of some repetition, what I consider to be the key messages of the lecture.

The first message emerges from the preliminary discussion on the current scenario on financial inclusion, both at the aggregate level and across income categories. The data suggest that even savings accounts, the most basic financial service, have low penetration amongst the lowest income households. I want to emphasize that we are not talking about Below Poverty Line households only; Rs. 50,000 per year in 2007, while perhaps not quite middle class, was certainly quite far above the official poverty line. The same concerns about lack of penetration amongst the lowest income group for loans also arise. To reiterate the question that arises from these data patterns: is this because people can't access banks or other service providers or because they don't see value in doing so? This question needs to be addressed if an effective inclusion strategy is to be developed.

The second message is that the process of financial inclusion is going to be incomplete and inadequate if it is measured only in terms of new accounts being opened and operated. From the employment and earning patterns, there emerged a sense that better access to various kinds of financial services would help to increase the livelihood potential of a number of occupational categories, which in turn would help reduce the income differentials between these and more regular, salaried jobs. The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter.

The third message emerges from the analysis of expenditure patterns is the significance of infrequent, but quantitatively significant expenditures like ceremonies and medical costs. Essentially, dealing with these kinds of expenditures requires either low-cost insurance options, supported by a correspondingly low-cost health care system or a low level systematic investment plan, which allows even poor households to create enough of a buffer to deal with these demands as and when they arise. As has already been pointed out, it is not as though such products are not being offered by domestic financial service providers. It is really a matter of extending them to make them accessible to a very large number of lower income households, with a low and possibly uncertain ability to maintain regular contributions.

The fourth message comes strongly from the motivations to both save and borrow, which, as one might reasonably expect, significantly overlap with each other. It is striking that the need to deal with emergencies, both financial and medical, plays such an important role in both sets of motivations. The latter is, as has been said, amenable to a low-coat mass insurance scheme, with the attendant service provision. However, the former, which is a theme that recurs through the entire discussion on consumer characteristics, certainly suggests that the need for some kind of income and consumption smoothing product is a significant one in an effective financial inclusion agenda. This, of course, raises broader questions about the role of social safety nets, which offer at least some minimum income security and consumption smoothing. How extensive these mechanisms should be, how much security they should offer and for how long and how they should be financed are fundamental policy questions that go beyond the realm of the financial sector. However, to the extent that risk mitigation is a significant financial need, it must receive due attention of any meaningful financial inclusion strategy, in a way which provides practical answers to all these three questions.

The fifth and final message is actually the point I began the lecture with. It is the critical importance of the principle of commercial viability. Every aspect of a financial inclusion strategy - whether it is the design of products and services or the delivery mechanism -needs to be viewed in terms of the business opportunity that it offers and not as a deliverable that has been imposed on the service provider. However, it is also important to emphasize that commercial viability need not necessarily be viewed in terms of immediate cost and profitability calculations. Like in many other products, financial services also offer the prospect of a life-cycle model of marketing. Establishing a relationship with first-time consumers of financial products and services offers the opportunity to leverage this relationship into a wider set of financial transactions as at least some of these consumers move steadily up the income ladder. In fact, in a high growth scenario, a high proportion of such households are likely to move quite quickly from very basic financial services to more and more sophisticated ones. In other words, the commercial viability and profitability of a financial inclusion strategy need not be viewed only from the perspective of immediacy. There is a viable investment dimension to it as well.

Identify the correct statement from the following:

Solution:

As per 3rd Para, last few lines: The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter

QUESTION: 36

DIRECTIONS for the question: Read the passage and answer the question based on it.

I have tried to introduce into the discussion a number of attributes of consumer behaviour and motivations, which I believe are important inputs into devising a strategy for commercially viable financial inclusion. These related broadly to the (i) the sources of livelihood of the potential consumer segment for financial inclusion (ii) how they spend their money, particularly on non-regular items (iii) their choices and motivations with respect to saving and (iv) their motivations for borrowing and their ability to access institutional sources of finance for their basic requirements. In discussing each of these sets of issues, I spent some time drawing implications for business strategies by financial service providers. In this section, I wilt briefly highlight, at the risk of some repetition, what I consider to be the key messages of the lecture.

The first message emerges from the preliminary discussion on the current scenario on financial inclusion, both at the aggregate level and across income categories. The data suggest that even savings accounts, the most basic financial service, have low penetration amongst the lowest income households. I want to emphasize that we are not talking about Below Poverty Line households only; Rs. 50,000 per year in 2007, while perhaps not quite middle class, was certainly quite far above the official poverty line. The same concerns about lack of penetration amongst the lowest income group for loans also arise. To reiterate the question that arises from these data patterns: is this because people can't access banks or other service providers or because they don't see value in doing so? This question needs to be addressed if an effective inclusion strategy is to be developed.

The second message is that the process of financial inclusion is going to be incomplete and inadequate if it is measured only in terms of new accounts being opened and operated. From the employment and earning patterns, there emerged a sense that better access to various kinds of financial services would help to increase the livelihood potential of a number of occupational categories, which in turn would help reduce the income differentials between these and more regular, salaried jobs. The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter.

The third message emerges from the analysis of expenditure patterns is the significance of infrequent, but quantitatively significant expenditures like ceremonies and medical costs. Essentially, dealing with these kinds of expenditures requires either low-cost insurance options, supported by a correspondingly low-cost health care system or a low level systematic investment plan, which allows even poor households to create enough of a buffer to deal with these demands as and when they arise. As has already been pointed out, it is not as though such products are not being offered by domestic financial service providers. It is really a matter of extending them to make them accessible to a very large number of lower income households, with a low and possibly uncertain ability to maintain regular contributions.

The fourth message comes strongly from the motivations to both save and borrow, which, as one might reasonably expect, significantly overlap with each other. It is striking that the need to deal with emergencies, both financial and medical, plays such an important role in both sets of motivations. The latter is, as has been said, amenable to a low-coat mass insurance scheme, with the attendant service provision. However, the former, which is a theme that recurs through the entire discussion on consumer characteristics, certainly suggests that the need for some kind of income and consumption smoothing product is a significant one in an effective financial inclusion agenda. This, of course, raises broader questions about the role of social safety nets, which offer at least some minimum income security and consumption smoothing. How extensive these mechanisms should be, how much security they should offer and for how long and how they should be financed are fundamental policy questions that go beyond the realm of the financial sector. However, to the extent that risk mitigation is a significant financial need, it must receive due attention of any meaningful financial inclusion strategy, in a way which provides practical answers to all these three questions.

The fifth and final message is actually the point I began the lecture with. It is the critical importance of the principle of commercial viability. Every aspect of a financial inclusion strategy - whether it is the design of products and services or the delivery mechanism -needs to be viewed in terms of the business opportunity that it offers and not as a deliverable that has been imposed on the service provider. However, it is also important to emphasize that commercial viability need not necessarily be viewed in terms of immediate cost and profitability calculations. Like in many other products, financial services also offer the prospect of a life-cycle model of marketing. Establishing a relationship with first-time consumers of financial products and services offers the opportunity to leverage this relationship into a wider set of financial transactions as at least some of these consumers move steadily up the income ladder. In fact, in a high growth scenario, a high proportion of such households are likely to move quite quickly from very basic financial services to more and more sophisticated ones. In other words, the commercial viability and profitability of a financial inclusion strategy need not be viewed only from the perspective of immediacy. There is a viable investment dimension to it as well.

Identify the wrong statement from the following:

Solution:

As per last Para 7 th last line  says " In fact, in a high growth scenario, a high proportion of such households are likely to move quite quickly from very basic financial services to more and more sophisticated ones".

QUESTION: 37

DIRECTIONS for the question: Read the passage and answer the question based on it.

I have tried to introduce into the discussion a number of attributes of consumer behaviour and motivations, which I believe are important inputs into devising a strategy for commercially viable financial inclusion. These related broadly to the (i) the sources of livelihood of the potential consumer segment for financial inclusion (ii) how they spend their money, particularly on non-regular items (iii) their choices and motivations with respect to saving and (iv) their motivations for borrowing and their ability to access institutional sources of finance for their basic requirements. In discussing each of these sets of issues, I spent some time drawing implications for business strategies by financial service providers. In this section, I wilt briefly highlight, at the risk of some repetition, what I consider to be the key messages of the lecture.

The first message emerges from the preliminary discussion on the current scenario on financial inclusion, both at the aggregate level and across income categories. The data suggest that even savings accounts, the most basic financial service, have low penetration amongst the lowest income households. I want to emphasize that we are not talking about Below Poverty Line households only; Rs. 50,000 per year in 2007, while perhaps not quite middle class, was certainly quite far above the official poverty line. The same concerns about lack of penetration amongst the lowest income group for loans also arise. To reiterate the question that arises from these data patterns: is this because people can't access banks or other service providers or because they don't see value in doing so? This question needs to be addressed if an effective inclusion strategy is to be developed.

The second message is that the process of financial inclusion is going to be incomplete and inadequate if it is measured only in terms of new accounts being opened and operated. From the employment and earning patterns, there emerged a sense that better access to various kinds of financial services would help to increase the livelihood potential of a number of occupational categories, which in turn would help reduce the income differentials between these and more regular, salaried jobs. The fact that a huge proportion of the Indian workforce is either self-employed and in the casual labour segment suggests the need for products that will make access to credit easier to the former, while offering opportunities for risk mitigation and consumption smoothing to the latter.

The third message emerges from the analysis of expenditure patterns is the significance of infrequent, but quantitatively significant expenditures like ceremonies and medical costs. Essentially, dealing with these kinds of expenditures requires either low-cost insurance options, supported by a correspondingly low-cost health care system or a low level systematic investment plan, which allows even poor households to create enough of a buffer to deal with these demands as and when they arise. As has already been pointed out, it is not as though such products are not being offered by domestic financial service providers. It is really a matter of extending them to make them accessible to a very large number of lower income households, with a low and possibly uncertain ability to maintain regular contributions.

The fourth message comes strongly from the motivations to both save and borrow, which, as one might reasonably expect, significantly overlap with each other. It is striking that the need to deal with emergencies, both financial and medical, plays such an important role in both sets of motivations. The latter is, as has been said, amenable to a low-coat mass insurance scheme, with the attendant service provision. However, the former, which is a theme that recurs through the entire discussion on consumer characteristics, certainly suggests that the need for some kind of income and consumption smoothing product is a significant one in an effective financial inclusion agenda. This, of course, raises broader questions about the role of social safety nets, which offer at least some minimum income security and consumption smoothing. How extensive these mechanisms should be, how much security they should offer and for how long and how they should be financed are fundamental policy questions that go beyond the realm of the financial sector. However, to the extent that risk mitigation is a significant financial need, it must receive due attention of any meaningful financial inclusion strategy, in a way which provides practical answers to all these three questions.

The fifth and final message is actually the point I began the lecture with. It is the critical importance of the principle of commercial viability. Every aspect of a financial inclusion strategy - whether it is the design of products and services or the delivery mechanism -needs to be viewed in terms of the business opportunity that it offers and not as a deliverable that has been imposed on the service provider. However, it is also important to emphasize that commercial viability need not necessarily be viewed in terms of immediate cost and profitability calculations. Like in many other products, financial services also offer the prospect of a life-cycle model of marketing. Establishing a relationship with first-time consumers of financial products and services offers the opportunity to leverage this relationship into a wider set of financial transactions as at least some of these consumers move steadily up the income ladder. In fact, in a high growth scenario, a high proportion of such households are likely to move quite quickly from very basic financial services to more and more sophisticated ones. In other words, the commercial viability and profitability of a financial inclusion strategy need not be viewed only from the perspective of immediacy. There is a viable investment dimension to it as well.

According to the author, it is good to view ‘commercial viability’ in relation with

Solution:

The author states this in the last paragraph “Every aspect of a financial inclusion strategy - whether it is the design of products and services or the delivery mechanism -needs to be viewed in terms of the business opportunity that it offers”. Hence, option 2

QUESTION: 38

DIRECTIONS for the question: Read the passage and answer the question based on it.

When Ratan Tata moved the Supreme Court, claiming his right to privacy had been violated, he called Harish Salve. The choice was not surprising. The former solicitor general had been topping the legal charts ever since he scripted a surprising win for Mukesh Ambani against his brother Anil. That dispute set the gold standard for legal fees. On Mukesh's side were Salve, Rohinton Nariman, and Abhishek Manu Singhvi. The younger brother had an equally formidable line-up led by Ram Jethmalani and Mukul Rohatgi.

The dispute dated back three-and-a-half years to when Anil filed a case against his brother for reneging on an agreement to supply 28 million cubic metres of gas per day from its Krishna-Godavari basin fields at a rate of $ 2.34 for 17 years. The average legal fee was Rs. 25 lakh for a full day's appearance, not to mention the overnight stays at Mumbai's five-star suites, business class travel, and on occasion, use of the private jet Little wonder though that Salve agreed to take on Tata's case pro bono. He could afford philanthropy with one of India's wealthiest tycoons.

The lawyers' fees alone, at a conservative estimate, must have cost the Ambanis at least Rs. 15 crore each. Both the brothers had booked their legal teams in the same hotel, first the Oberoi and, after the 26/11 Mumbai attacks, the Trident. It's not the essentials as much as the frills that raise eyebrows. The veteran Jethmalani is surprisingly the most modest in his fees since he does not charge rates according to the strength of the client's purse. But as the crises have multiplied, lawyers' fees have exploded.

The 50 court hearings in the Haldia Petrochemicals vs. the West Bengal Government cost the former a total of Rs. 25 crore in lawyer fees and the 20 hearings in the Bombay Mill Case, which dragged on for three years, cost the mill owners almost Rs. 10 crore. Large corporate firms, which engage star counsels on behalf of the client, also need to know their quirks. For instance, Salve will only accept the first brief. He will never be the second counsel in a case. Some lawyers prefer to be paid partly in cash but the best are content with cheques. Some expect the client not to blink while picking up a dinner tab of Rs. 1.75 lakh at a Chennai five star. A lawyer is known to carry his home linen and curtains with him while traveling on work. A firm may even have to pick up a hot Vertu phone of the moment or a Jaeger-LeCoutre watch of the hour to keep a lawyer in good humour.

Some are even paid to not appear at all for the other side - Aryama Sundaram was retained by Anil Ambani in the gas feud but he did not fight the case. Or take Raytheon when it was fighting the Jindals. Raytheon had paid seven top lawyers a retainer fee of Rs. 2.5 lakh each just to ensure that the Jindals would not be able to make a proper case on a taxation issue. They miscalculated when a star lawyer fought the case at the last minute. "I don't take negative retainers", shrugs Rohatgi, former additional solicitor general. "A lawyer's job is to appear for any client that comes to him. It's not for the lawyers to judge if a client is good or bad but the court". Indeed. He is, after all, the lawyer who argued so famously in court that B. Ramalinga Raju did not fudge any account in the Satyam Case. All he did was "window dressing".

Some high profile cases have continued for years, providing a steady source of income, from the Scindia succession battle which dates to 1989, to the JetLite Sahara battle now in taxation arbitration to the BCCI which is currently in litigation with Lalit Modi, Rajasthan Royals and Kings XI Punjab.

Think of the large law firms as the big Hollywood studios and the senior counsel as the superstar. There are a few familiar faces to be found in most of the big ticket cases, whether it is the Ambani gas case, Vodafone taxation or Bombay Mills case. Explains Salve, 'There is a reason why we have more than one senior advocate on a case. When you're arguing, he's reading the court. He picks up a point or a vibe that you may have missed." Says Rajan Karanjawala, whose firm has prepared the briefs for cases ranging from the Tata's recent Right to privacy case to Karisma Kapoor's divorce, "The four jewels in the crown today are Salve, Rohatgi, Rohinton Nariman and Singhvi. They have replaced the old guard of Fali Nariman, Soli Sorabjee, Ashok Desai and K.K. Venugopal." He adds, 'The one person who defies the generational gap is Jethmalani who was India's leading criminal lawyer in the 1960s and is so today."

The demand for superstar lawyers has far outstripped the supply. So a one-man show by, say, Rohatgi can run up billings of Rs. 40 crore, the same as a mid-sized corporate law firm like Titus and Co that employs 28 juniors. The big law firms such as AZB or Amarchand & Mangaldas or Luthra & Luthra have to do all the groundwork for the counsel, from humouring the clerk to ensure the A-lister turns up on the hearing day to sourcing appropriate foreign judgments in emerging areas such as environmental and patent laws. "We are partners in this. There are so few lawyers and so many matters," points out Diljeet Titus.

As the trust between individuals has broken down, governments have questioned corporates and corporates are questioning each other, and an array of new issues has come up. The courts have become stronger. "The lawyer," says Sundaram, with the flourish mat has seen him pick up many Dhurandhares and Senakas at pricey art auctions, "has emerged as the modern day purohit." Each purohit is head priest of a particular style. Says Karanjawala, "Harish is the closest example in today's bar to Fali Nariman; Rohinton has the best law library in his brain; Mukul is easily India's busiest lawyer while Manu Singhvi is the greatest multi-tasker." Salve has managed a fine balancing act where he has represented Mulayam Singh Yadav and Mayawati, Parkash Singh Badal and Amarinder Singh, Lalit Modi and Subhash Chandra and even the Ambani brothers, of course in different cases. Jethmalani is the man to call for anyone in trouble. In judicial circles he is known as the first resort for the last resort. Even Jethmalani's junior Satish Maneshinde, who came to Mumbai in 1993 as a penniless law graduate from Karnataka, shot to fame (and wealth) after he got bail for Sanjay Dutt in 1996. Now he owns a plush office in Worli and has become a one-stop shop for celebrities in trouble.

Q. Which of the following is not true about Ram Jethmalani?

Solution:

Last Para last 6th last line says " Jethmalani is the man to call for anyone in trouble. In judicial circles he is known as the first resort for the last resort". Para 3 mentions "The veteran Jethmalani is surprisingly modest in his fees…".Para 7 clearly mentions " The one person who defies the generational gap is Jeth malani who was India's leading criminal lawyer in the 1960s and is so today." There is no mention of his juniors not having done well.

QUESTION: 39

DIRECTIONS for the question: Read the passage and answer the question based on it.

When Ratan Tata moved the Supreme Court, claiming his right to privacy had been violated, he called Harish Salve. The choice was not surprising. The former solicitor general had been topping the legal charts ever since he scripted a surprising win for Mukesh Ambani against his brother Anil. That dispute set the gold standard for legal fees. On Mukesh's side were Salve, Rohinton Nariman, and Abhishek Manu Singhvi. The younger brother had an equally formidable line-up led by Ram Jethmalani and Mukul Rohatgi.

The dispute dated back three-and-a-half years to when Anil tiled a case against his brother for reneging on an agreement to supply 28 million cubic metres of gas per day from its Krishna-Godavari basin fields at a rate of $ 2.34 for 17 years. The average legal fee was Rs. 25 lakh for a full day's appearance, not to mention the overnight stays at Mumbai's five-star suites, business class travel, and on occasion, use of the private jet Little wonder though that Salve agreed to take on Tata's case pro bono. He could afford philanthropy with one of India's wealthiest tycoons.

The lawyers' fees alone, at a conservative estimate, must have cost the Ambanis at least Rs. 15 crore each. Both the brothers had booked their legal teams in the same hotel, first the Oberoi and, after the 26/11 Mumbai attacks, the Trident. It's not the essentials as much as the frills that raise eyebrows. The veteran Jethmalani is surprisingly the most modest in his fees since he does not charge rates according to the strength of the client's purse. But as the crises have multiplied, lawyers' fees have exploded.

The 50 court hearings in the Haldia Petrochemicals vs. the West Bengal Government cost the former a total of Rs. 25 crore in lawyer fees and the 20 hearings in the Bombay Mill Case, which dragged on for three years, cost the mill owners almost Rs. 10 crore. Large corporate firms, which engage star counsels on behalf of the client, also need to know their quirks. For instance, Salve will only accept the first brief. He will never be the second counsel in a case. Some lawyers prefer to be paid partly in cash but the best are content with cheques. Some expect the client not to blink while picking up a dinner tab of Rs. 1.75 lakh at a Chennai five star. A lawyer is known to carry his home linen and curtains with him while traveling on work. A firm may even have to pick up a hot Vertu phone of the moment or a Jaeger-LeCoutre watch of the hour to keep a lawyer in good humour.

Some are even paid to not appear at all for the other side - Aryama Sundaram was retained by Anil Ambani in the gas feud but he did not fight the case. Or take Raytheon when it was fighting the Jindals. Raytheon had paid seven top lawyers a retainer fee of Rs. 2.5 lakh each just to ensure that the Jindals would not be able to make a proper case on a taxation issue. They miscalculated when a star lawyer fought the case at the last minute. "I don't take negative retainers", shrugs Rohatgi, former additional solicitor general. "A lawyer's job is to appear for any client that comes to him. It's not for the lawyers to judge if a client is good or bad but the court". Indeed. He is, after all, the lawyer who argued so famously in court that B. Ramalinga Raju did not fudge any account in the Satyam Case. All he did was "window dressing".

Some high profile cases have continued for years, providing a steady source of income, from the Scindia succession battle which dates to 1989, to the JetLite Sahara battle now in taxation arbitration to the BCCI which is currently in litigation with Lalit Modi, Rajasthan Royals and Kings XI Punjab.

Think of the large law firms as the big Hollywood studios and the senior counsel as the superstar. There are a few familiar faces to be found in most of the big ticket cases, whether it is the Ambani gas case, Vodafone taxation or Bombay Mills case. Explains Salve, 'There is a reason why we have more than one senior advocate on a case. When you're arguing, he's reading the court. He picks up a point or a vibe that you may have missed." Says Rajan Karanjawala, whose firm has prepared the briefs for cases ranging from the Tata's recent Right to privacy case to Karisma Kapoor's divorce, "The four jewels in the crown today are Salve, Rohatgi, Rohinton Nariman and Singhvi. They have replaced the old guard of Fali Nariman, Soli Sorabjee, Ashok Desai and K.K. Venugopal." He adds, 'The one person who defies the generational gap is Jethmalani who was India's leading criminal lawyer in the 1960s and is so today."

The demand for superstar lawyers has far outstripped the supply. So a one-man show by, say, Rohatgi can run up billings of Rs. 40 crore, the same as a mid-sized corporate law firm like Titus and Co that employs 28 juniors. The big law firms such as AZB or Amarchand & Mangaldas or Luthra & Luthra have to do all the groundwork for the counsel, from humouring the clerk to ensure the A-lister turns up on the hearing day to sourcing appropriate foreign judgments in emerging areas such as environmental and patent laws. "We are partners in this. There are so few lawyers and so many matters," points out Diljeet Titus.

As the trust between individuals has broken down, governments have questioned corporates and corporates are questioning each other, and an array of new issues has come up. The courts have become stronger. "The lawyer," says Sundaram, with the flourish mat has seen him pick up many Dhurandhares and Senakas at pricey art auctions, "has emerged as the modern day purohit." Each purohit is head priest of a particular style. Says Karanjawala, "Harish is the closest example in today's bar to Fali Nariman; Rohinton has the best law library in his brain; Mukul is easily India's busiest lawyer while Manu Singhvi is the greatest multi-tasker." Salve has managed a fine balancing act where he has represented Mulayam Singh Yadav and Mayawati, Parkash Singh Badal and Amarinder Singh, Lalit Modi and Subhash Chandra and even the Ambani brothers, of course in different cases. Jethmalani is the man to call for anyone in trouble. In judicial circles he is known as the first resort for the last resort. Even Jethmalani's junior Satish Maneshinde, who came to Mumbai in 1993 as a penniless law graduate from Karnataka, shot to fame (and wealth) after he got bail for Sanjay Dutt in 1996. Now he owns a plush office in Worli and has become a one-stop shop for celebrities in trouble.

Match the following:

 Lawyer                                Distinguishing Quality

a. Harish Salve                      i. India’s busiest lawyer
b. Rohinton                            ii. Today’s Fali Nariman
c. Mukul Rohatgi                   iii. Greatest multi-tasker
d. Abhishek Manu Singhvi     iv. Best Law library in his brain

Solution:

Mentioned clearly in the last paragraph 6th line. "Harish is the closest example in today's bar to Fali Nariman; Rohinton has the best law library in his brain; Mukul is easily India's busiest lawyer while Manu Singhvi is the greatest multi-tasker".

QUESTION: 40

When Ratan Tata moved the Supreme Court, claiming his right to privacy had been violated, he called Harish Salve. The choice was not surprising. The former solicitor general had been topping the legal charts ever since he scripted a surprising win for Mukesh Ambani against his brother Anil. That dispute set the gold standard for legal fees. On Mukesh's side were Salve, Rohinton Nariman, and Abhishek Manu Singhvi. The younger brother had an equally formidable line-up led by Ram Jethmalani and Mukul Rohatgi.

The dispute dated back three-and-a-half years to when Anil tiled a case against his brother for reneging on an agreement to supply 28 million cubic metres of gas per day from its Krishna-Godavari basin fields at a rate of $ 2.34 for 17 years. The average legal fee was Rs. 25 lakh for a full day's appearance, not to mention the overnight stays at Mumbai's five-star suites, business class travel, and on occasion, use of the private jet Little wonder though that Salve agreed to take on Tata's case pro bono. He could afford philanthropy with one of India's wealthiest tycoons.

The lawyers' fees alone, at a conservative estimate, must have cost the Ambanis at least Rs. 15 crore each. Both the brothers had booked their legal teams in the same hotel, first the Oberoi and, after the 26/11 Mumbai attacks, the Trident. It's not the essentials as much as the frills that raise eyebrows. The veteran Jethmalani is surprisingly the most modest in his fees since he does not charge rates according to the strength of the client's purse. But as the crises have multiplied, lawyers' fees have exploded.

The 50 court hearings in the Haldia Petrochemicals vs. the West Bengal Government cost the former a total of Rs. 25 crore in lawyer fees and the 20 hearings in the Bombay Mill Case, which dragged on for three years, cost the mill owners almost Rs. 10 crore. Large corporate firms, which engage star counsels on behalf of the client, also need to know their quirks. For instance, Salve will only accept the first brief. He will never be the second counsel in a case. Some lawyers prefer to be paid partly in cash but the best are content with cheques. Some expect the client not to blink while picking up a dinner tab of Rs. 1.75 lakh at a Chennai five star. A lawyer is known to carry his home linen and curtains with him while traveling on work. A firm may even have to pick up a hot Vertu phone of the moment or a Jaeger-LeCoutre watch of the hour to keep a lawyer in good humour.

Some are even paid to not appear at all for the other side - Aryama Sundaram was retained by Anil Ambani in the gas feud but he did not fight the case. Or take Raytheon when it was fighting the Jindals. Raytheon had paid seven top lawyers a retainer fee of Rs. 2.5 lakh each just to ensure that the Jindals would not be able to make a proper case on a taxation issue. They miscalculated when a star lawyer fought the case at the last minute. "I don't take negative retainers", shrugs Rohatgi, former additional solicitor general. "A lawyer's job is to appear for any client that comes to him. It's not for the lawyers to judge if a client is good or bad but the court". Indeed. He is, after all, the lawyer who argued so famously in court that B. Ramalinga Raju did not fudge any account in the Satyam Case. All he did was "window dressing".

Some high profile cases have continued for years, providing a steady source of income, from the Scindia succession battle which dates to 1989, to the JetLite Sahara battle now in taxation arbitration to the BCCI which is currently in litigation with Lalit Modi, Rajasthan Royals and Kings XI Punjab.

Think of the large law firms as the big Hollywood studios and the senior counsel as the superstar. There are a few familiar faces to be found in most of the big ticket cases, whether it is the Ambani gas case, Vodafone taxation or Bombay Mills case. Explains Salve, 'There is a reason why we have more than one senior advocate on a case. When you're arguing, he's reading the court. He picks up a point or a vibe that you may have missed." Says Rajan Karanjawala, whose firm has prepared the briefs for cases ranging from the Tata's recent Right to privacy case to Karisma Kapoor's divorce, "The four jewels in the crown today are Salve, Rohatgi, Rohinton Nariman and Singhvi. They have replaced the old guard of Fali Nariman, Soli Sorabjee, Ashok Desai and K.K. Venugopal." He adds, 'The one person who defies the generational gap is Jethmalani who was India's leading criminal lawyer in the 1960s and is so today."

The demand for superstar lawyers has far outstripped the supply. So a one-man show by, say, Rohatgi can run up billings of Rs. 40 crore, the same as a mid-sized corporate law firm like Titus and Co that employs 28 juniors. The big law firms such as AZB or Amarchand & Mangaldas or Luthra & Luthra have to do all the groundwork for the counsel, from humouring the clerk to ensure the A-lister turns up on the hearing day to sourcing appropriate foreign judgments in emerging areas such as environmental and patent laws. "We are partners in this. There are so few lawyers and so many matters," points out Diljeet Titus.

As the trust between individuals has broken down, governments have questioned corporates and corporates are questioning each other, and an array of new issues has come up. The courts have become stronger. "The lawyer," says Sundaram, with the flourish mat has seen him pick up many Dhurandhares and Senakas at pricey art auctions, "has emerged as the modern day purohit." Each purohit is head priest of a particular style. Says Karanjawala, "Harish is the closest example in today's bar to Fali Nariman; Rohinton has the best law library in his brain; Mukul is easily India's busiest lawyer while Manu Singhvi is the greatest multi-tasker." Salve has managed a fine balancing act where he has represented Mulayam Singh Yadav and Mayawati, Parkash Singh Badal and Amarinder Singh, Lalit Modi and Subhash Chandra and even the Ambani brothers, of course in different cases. Jethmalani is the man to call for anyone in trouble. In judicial circles he is known as the first resort for the last resort. Even Jethmalani's junior Satish Maneshinde, who came to Mumbai in 1993 as a penniless law graduate from Karnataka, shot to fame (and wealth) after he got bail for Sanjay Dutt in 1996. Now he owns a plush office in Worli and has become a one-stop shop for celebrities in trouble.

Q. What does a 'negative retainer' refer to?

Solution:

Para 5 narrates the fact that lawyers are retained by clients for not fighting the case for the other side which is called negative retainer.

QUESTION: 41

When Ratan Tata moved the Supreme Court, claiming his right to privacy had been violated, he called Harish Salve. The choice was not surprising. The former solicitor general had been topping the legal charts ever since he scripted a surprising win for Mukesh Ambani against his brother Anil. That dispute set the gold standard for legal fees. On Mukesh's side were Salve, Rohinton Nariman, and Abhishek Manu Singhvi. The younger brother had an equally formidable line-up led by Ram Jethmalani and Mukul Rohatgi.

The dispute dated back three-and-a-half years to when Anil tiled a case against his brother for reneging on an agreement to supply 28 million cubic metres of gas per day from its Krishna-Godavari basin fields at a rate of $ 2.34 for 17 years. The average legal fee was Rs. 25 lakh for a full day's appearance, not to mention the overnight stays at Mumbai's five-star suites, business class travel, and on occasion, use of the private jet Little wonder though that Salve agreed to take on Tata's case pro bono. He could afford philanthropy with one of India's wealthiest tycoons.

The lawyers' fees alone, at a conservative estimate, must have cost the Ambanis at least Rs. 15 crore each. Both the brothers had booked their legal teams in the same hotel, first the Oberoi and, after the 26/11 Mumbai attacks, the Trident. It's not the essentials as much as the frills that raise eyebrows. The veteran Jethmalani is surprisingly the most modest in his fees since he does not charge rates according to the strength of the client's purse. But as the crises have multiplied, lawyers' fees have exploded.

The 50 court hearings in the Haldia Petrochemicals vs. the West Bengal Government cost the former a total of Rs. 25 crore in lawyer fees and the 20 hearings in the Bombay Mill Case, which dragged on for three years, cost the mill owners almost Rs. 10 crore. Large corporate firms, which engage star counsels on behalf of the client, also need to know their quirks. For instance, Salve will only accept the first brief. He will never be the second counsel in a case. Some lawyers prefer to be paid partly in cash but the best are content with cheques. Some expect the client not to blink while picking up a dinner tab of Rs. 1.75 lakh at a Chennai five star. A lawyer is known to carry his home linen and curtains with him while traveling on work. A firm may even have to pick up a hot Vertu phone of the moment or a Jaeger-LeCoutre watch of the hour to keep a lawyer in good humour.

Some are even paid to not appear at all for the other side - Aryama Sundaram was retained by Anil Ambani in the gas feud but he did not fight the case. Or take Raytheon when it was fighting the Jindals. Raytheon had paid seven top lawyers a retainer fee of Rs. 2.5 lakh each just to ensure that the Jindals would not be able to make a proper case on a taxation issue. They miscalculated when a star lawyer fought the case at the last minute. "I don't take negative retainers", shrugs Rohatgi, former additional solicitor general. "A lawyer's job is to appear for any client that comes to him. It's not for the lawyers to judge if a client is good or bad but the court". Indeed. He is, after all, the lawyer who argued so famously in court that B. Ramalinga Raju did not fudge any account in the Satyam Case. All he did was "window dressing".

Some high profile cases have continued for years, providing a steady source of income, from the Scindia succession battle which dates to 1989, to the JetLite Sahara battle now in taxation arbitration to the BCCI which is currently in litigation with Lalit Modi, Rajasthan Royals and Kings XI Punjab.

Think of the large law firms as the big Hollywood studios and the senior counsel as the superstar. There are a few familiar faces to be found in most of the big ticket cases, whether it is the Ambani gas case, Vodafone taxation or Bombay Mills case. Explains Salve, 'There is a reason why we have more than one senior advocate on a case. When you're arguing, he's reading the court. He picks up a point or a vibe that you may have missed." Says Rajan Karanjawala, whose firm has prepared the briefs for cases ranging from the Tata's recent Right to privacy case to Karisma Kapoor's divorce, "The four jewels in the crown today are Salve, Rohatgi, Rohinton Nariman and Singhvi. They have replaced the old guard of Fali Nariman, Soli Sorabjee, Ashok Desai and K.K. Venugopal." He adds, 'The one person who defies the generational gap is Jethmalani who was India's leading criminal lawyer in the 1960s and is so today."

The demand for superstar lawyers has far outstripped the supply. So a one-man show by, say, Rohatgi can run up billings of Rs. 40 crore, the same as a mid-sized corporate law firm like Titus and Co that employs 28 juniors. The big law firms such as AZB or Amarchand & Mangaldas or Luthra & Luthra have to do all the groundwork for the counsel, from humouring the clerk to ensure the A-lister turns up on the hearing day to sourcing appropriate foreign judgments in emerging areas such as environmental and patent laws. "We are partners in this. There are so few lawyers and so many matters," points out Diljeet Titus.

As the trust between individuals has broken down, governments have questioned corporates and corporates are questioning each other, and an array of new issues has come up. The courts have become stronger. "The lawyer," says Sundaram, with the flourish mat has seen him pick up many Dhurandhares and Senakas at pricey art auctions, "has emerged as the modern day purohit." Each purohit is head priest of a particular style. Says Karanjawala, "Harish is the closest example in today's bar to Fali Nariman; Rohinton has the best law library in his brain; Mukul is easily India's busiest lawyer while Manu Singhvi is the greatest multi-tasker." Salve has managed a fine balancing act where he has represented Mulayam Singh Yadav and Mayawati, Parkash Singh Badal and Amarinder Singh, Lalit Modi and Subhash Chandra and even the Ambani brothers, of course in different cases. Jethmalani is the man to call for anyone in trouble. In judicial circles he is known as the first resort for the last resort. Even Jethmalani's junior Satish Maneshinde, who came to Mumbai in 1993 as a penniless law graduate from Karnataka, shot to fame (and wealth) after he got bail for Sanjay Dutt in 1996. Now he owns a plush office in Worli and has become a one-stop shop for celebrities in trouble.

Q. What does the phrase 'pro bono' mean?

 

Solution:

Para 2 mentions Salve took Tata's case pro bono and the word philanthropy is mentioned in the next line which points to the fact that is was done for some good. Hence option B.

QUESTION: 42

The second issue I want to address is one that comes up frequently - that Indian banks should aim to become global. Most people who put forward this view have not thought through the costs and benefits analytically; they only see this as an aspiration consistent with India's growing international profile. In its 1998 report, the Narasimham (II) Committee envisaged a three tier structure for the Indian banking sector: 3 or 4 large banks having an international presence on the top, 8-10 mid-sized banks, with a network of branches throughout the country and engaged in universal banking, in the middle, and local banks and regional rural banks operating in smaller regions forming the bottom layer. However, the Indian banking system has not consolidated in the manner envisioned by the Narasimham Committee. The current structure is that India has 81 scheduled commercial banks of which 26 are public sector banks. 21 are private sector banks and 34 are foreign banks. Even a quick review would reveal that there is no segmentation in the banking structure along the lines of Narasimham II.

A natural sequel to this issue of the envisaged structure of the Indian banking system is the Reserve Bank's position on bank consolidation. Our view on bank consolidation is that the process should be market-driven, based on profitability considerations and brought about through a process of mergers & amalgamations (M&As). The initiative for this has to come from the boards of the banks concerned which have to make a decision based on a judgment of the synergies involved in the business models and the compatibility of the business cultures. The Reserve Bank's role in the reorganisation of the banking system will normally be only that of a facilitator.

It should-be noted though that bank consolidation through mergers is not always a totally benign option. On the positive side there is a higher exposure threshold, international acceptance and recognition, improved risk management and improvement in financials due to economies of scale and scope. This can be achieved both through organic and inorganic growth. On the negative side, experience shows that consolidation would fail if there are no synergies in the business models and there is no compatibility in the business cultures and technology platforms of the merging banks.

Having given that broad brush position on bank consolidation, let me address two specific questions: (i) can Indian banks aspire to global size and (ii) should Indian banks aspire to global size?

On the first question, as per the current global league tables based on the size of assets, our largest bank, the State Bank of India (SBI), together with its subsidiaries, comes in at No.74 followed by ICICI Bank at No. 145 and Bank of Baroda at 188. It is, therefore, unlikely that any of our banks will jump into the top ten of the global league even after reasonable consolidation.

Then comes the next question of whether Indian banks should become global. Opinion on this is divided. Those who argue that, we must go global contend that the issue is not so much the size of our banks in global rankings but of Indian banks having a strong enough global presence. The main argument is that the increasing global size and influence of Indian corporates warrant a corresponding increase in the global footprint of Indian banks. The opposing view is that Indian banks should look inwards rather than outwards, focus their efforts on financial deepening at home rather than aspiring to global size.

It is possible to make a middle path and argue that looking outwards towards increased global presence and looking inwards towards deeper financial penetration are not mutually exclusive; it should be possible to aim for both. With the onset of the global financial crisis, there has definitely been a pause to the rapid expansion overseas of our banks. Nevertheless, notwithstanding the risks involved, it will be opportune for some of our larger banks to be looking out for opportunities for consolidation both organically and inorganically. They should look out more actively in regions which hold out a promise of attractive acquisitions.

The surmise, therefore, is that Indian banks should increase their global footprint opportunistically even if they do not get to the top of the league table.

Q. Identify the correct statement from the following:

Solution:

Para 1 last line mentions the fact explicitly: Even a quick review would reveal that there is no segmentation in the banking structure along the lines of Narasimham II.

The other statements are factually incorrect as per the passage.

QUESTION: 43

The second issue I want to address is one that comes up frequently - that Indian banks should aim to become global Most people who put forward this view have not thought through the costs and benefits analytically; they only see this as an aspiration consistent with India's growing international profile. In its 1998 report, the Narasimham (II) Committee envisaged a three tier structure for the Indian banking sector: 3 or 4 large banks having an international presence on the top, 8-10 mid-sized banks, with a network of branches throughout the country and engaged in universal banking, in the middle, and local banks and regional rural banks operating in smaller regions forming the bottom layer. However, the Indian banking system has not consolidated in the manner envisioned by the Narasimham Committee. The current structure is that India has 81 scheduled commercial banks of which 26 are public sector banks. 21 are private sector banks and 34 are foreign banks. Even a quick review would reveal that there is no segmentation in the banking structure along the lines of Narasimham II.

A natural sequel to this issue of the envisaged structure of the Indian banking system is the Reserve Bank's position on bank consolidation. Our view on bank consolidation is that the process should be market-driven, based on profitability considerations and brought about through a process of mergers & amalgamations (M&As). The initiative for this has to come from the boards of the banks concerned which have to make a decision based on a judgment of the synergies involved in the business models and the compatibility of the business cultures. The Reserve Bank's role in the reorganisation of the banking system will normally be only that of a facilitator.

It should-be noted though that bank consolidation through mergers is not always a totally benign option. On the positive side ate a higher exposure threshold, international acceptance and recognition, improved risk management and improvement in financials due to economies of scale and scope. This can be achieved both through organic and inorganic growth. On the negative side, experience shows that consolidation would rail if there are no synergies in the business models and there is no compatibility in the business cultures and technology platforms of the merging banks.

Having given that broad brush position on bank consolidation, let me address two specific questions: (i) can Indian banks aspire to global size?; and CO should Indian banks aspire to global size?

On the first question, as per the current global league tables based on the size of assets, our largest bank, the State Bank of India (SBI), together with its subsidiaries, comes in at No.74 followed by ICICI Bank at No. 145 and Bank of Baroda at 188. It is, therefore, unlikely that any of our banks will jump into the top ten of the global league even after reasonable consolidation.

Then comes the next question of whether Indian banks should become global. Opinion on this is divided. Those who argue that, we must go global contend that the issue is not so much the size of our banks in global rankings but of Indian banks having a strong enough global presence. The main argument is that the increasing global size and influence of Indian corporates warrant a corresponding increase in the global footprint of Indian banks. The opposing view is that Indian banks should look inwards rather than outwards, focus their efforts on financial deepening at home rather than aspiring to global size.

It is possible to fake a middle path and argue that looking outwards towards increased global presence and looking inwards towards deeper financial penetration are not mutually exclusive; it should be possible to aim for both. With the onset of the global financial crisis, there has definitely been a pause to the rapid expansion overseas of our banks. Nevertheless, notwithstanding the risks involved, it will be opportune for some of our larger banks to be looking out for opportunities for consolidation both organically and inorganically. They should look out more actively in regions which hold out a promise of attractive acquisitions.

The surmise, therefore, is that Indian banks should increase their global footprint opportunistically even if they do not get to the top of the league table.

Q. Identify the correct statement from the following:

Solution:

Second Last para states option D: With the onset of the global financial crisis, there has definitely been a pause to the rapid expansion overseas of our banks. Nevertheless, notwithstanding the risks involved, it will be opportune for some of our larger banks to be looking out for opportunities for consolidation both organically and inorganically. They should look out more actively in regions which hold out a promise of attractive acquisitions.

QUESTION: 44

The second issue I want to address is one that comes up frequently - that Indian banks should aim to become global Most people who put forward this view have not thought through the costs and benefits analytically; they only see this as an aspiration consistent with India's growing international profile. In its 1998 report, the Narasimham (II) Committee envisaged a three tier structure for the Indian banking sector: 3 or 4 large banks having an international presence on the top, 8-10 mid-sized banks, with a network of branches throughout the country and engaged in universal banking, in the middle, and local banks and regional rural banks operating in smaller regions forming the bottom layer. However, the Indian banking system has not consolidated in the manner envisioned by the Narasimham Committee. The current structure is that India has 81 scheduled commercial banks of which 26 are public sector banks. 21 are private sector banks and 34 are foreign banks. Even a quick review would reveal that there is no segmentation in the banking structure along the lines of Narasimham II.

A natural sequel to this issue of the envisaged structure of the Indian banking system is the Reserve Bank's position on bank consolidation. Our view on bank consolidation is that the process should be market-driven, based on profitability considerations and brought about through a process of mergers & amalgamations (M&As). The initiative for this has to come from the boards of the banks concerned which have to make a decision based on a judgment of the synergies involved in the business models and the compatibility of the business cultures. The Reserve Bank's role in the reorganisation of the banking system will normally be only that of a facilitator.

It should-be noted though that bank consolidation through mergers is not always a totally benign option. On the positive side are a higher exposure threshold, international acceptance and recognition, improved risk management and improvement in financials due to economies of scale and scope. This can be achieved both through organic and inorganic growth. On the negative side, experience shows that consolidation would rail if there are no synergies in the business models and there is no compatibility in the business cultures and technology platforms of the merging banks.

Having given that broad brush position on bank consolidation, let me address two specific questions: (i) can Indian banks aspire to global size?; and CO should Indian banks aspire to global size?

On the first question, as per the current global league tables based on the size of assets, our largest bank, the State Bank of India (SBI), together with its subsidiaries, comes in at No.74 followed by ICICI Bank at No. 145 and Bank of Baroda at 188. It is, therefore, unlikely that any of our banks will jump into the top ten of the global league even after reasonable consolidation.

Then comes the next question of whether Indian banks should become global. Opinion on this is divided. Those who argue that, we must go global contend that the issue is not so much the size of our banks in global rankings but of Indian banks having a strong enough global presence. The main argument is that the increasing global size and influence of Indian corporates warrant a corresponding increase in the global footprint of Indian banks. The opposing view is that Indian banks should look inwards rather than outwards, focus their efforts on financial deepening at home rather than aspiring to global size.

It is possible to fake a middle path and argue that looking outwards towards increased global presence and looking inwards towards deeper financial penetration are not mutually exclusive; it should be possible to aim for both. With the onset of the global financial crisis, there has definitely been « pause to the rapid expansion overseas of our banks. Nevertheless, notwithstanding the risks involved, it will be opportune for some of our larger banks to be looking out for opportunities for consolidation both organically and inorganically. They should look out more actively in regions which hold out a promise of attractive acquisitions.

The surmise, therefore, is that Indian banks should increase their global footprint opportunistically even if they do not get to the top of the league table.

Q. Identify the wrong statement from the following:

Solution:

The 1st sentence of Para 5 "On the first question, as per the current global league tables……." means that Indian banks are present globally.

QUESTION: 45

DIRECTIONS for the question (45 to 46): The sentence below has four underlined words or phrases, marked A, B, C and D. Identify the underlined part that must be changed to make the sentence correct.

Neither the examiner/ (A) nor his assistant / (B) were informed / (C) about the cancellation of the examination. No Error.(D)

Solution:

It should be 'was' instead of 'were'. It is an error of subject verb agreement. In case of 'neither……nor', the verb agrees with the nearest subject, which in this case is assistant. 

QUESTION: 46

Being/ (A) a short holiday / (B) we had to return / (C) without visiting  many of the places / (D).

Solution:

The error is of 'dangling modifier' as 'being a short holiday' is modifying the pronoun 'we', which is wrong. The word 'It' should come before 'being' in part (a) of the sentence i.e a subject is required after 'being' and if no specific subject is mentioned than the impersonal pronoun 'it' can be used. Hence the error is in part 1.

QUESTION: 47

DIRECTIONS for the question(47 to 48): Pick the best option which completes the sentence in the most meaningful manner.

_____________ made after English settlers came to Jamestown was a map of Virginia by John Smith, the famous adventurer.

Solution:

The correct answer has to be a concise' subject' as it is missing from the sentence and it is to be supplied. Only option B is concise in the terms of formal english. Hence option B is concise and logically completes the sentence.

QUESTION: 48

The concert this weekend promises to attract _____________ than attended the last one.

Solution:

The sense conveyed by the sentence is about the number of people who are going to attend the concert.

'Number' is used over 'amount' as it is used for countable nouns.

We use greater with number and larger with amount.That is why we rule out option 1 and 2.

'A group of people' is also wrong,it can not be used in this context.

QUESTION: 49

DIRECTIONS for the question: In the question below, there are two sentences containing underlined homonyms, which may either be mis-spelt or inappropriately toed in the context of the sentence. Select the appropriate answer from the options given below:

I. A vote of censur was passed against the Chairman.

II. Before release, every film is passed by the Censor Board.

Solution:

There is no word as 'censur'. The correct word is 'censure', which means 'strong or vehement expression of disapproval'.

The word 'censor' has been correctly used in sentence 2 which means The Central Board of Film Certification (often referred to as the Censor Board).

QUESTION: 50

DIRECTIONS for the question: In the question below, there are two sentences containing underlined homonyms, which may either be mis-spelt or inappropriately toed in the context of the sentence. Select the appropriate answer from the options given below:

I. This behaviour does not compliment his position.

II. He thanked his boss for the complement

Solution:

The word 'compliment' means ' an expression of praise' and the word 'complement' means 'something that completes or makes perfect'.

QUESTION: 51

DIRECTIONS for the question (51 to 52): For the following sentence, choose the most appropriate "one word" for the given expressions

One who is unrelenting and cannot be moved by entreaties:

Solution:

The word 'inexorable' means  the one who is unyielding or uncompromising. 'Infallible' means the one who is impeccable or trustworthy. 'Impregnable' means  the one who is invincible. 'Inexplicable' means the one that is incomprehensible or indescribable.

QUESTION: 52

The art of cutting trees and bushes into ornamental shapes:

Solution:

The word 'bonsai' means the art or hobby of developing and growing such a plant or plants.The word 'horticulture' means the cultivation of flowers, fruits, vegetables, or ornamental plants. The word 'pruning' means to remove (anything considered superfluous or undesirable).

QUESTION: 53

DIRECTIONS for the question: Match the words in column I with their appropriate meanings in column 2.

Column 1             Column 2 
a. Predilection        i. Vanish
b. Evanescence     ii. A gentle, mild breeze
c. Zephyr               iii. Inane
d. Diaphanous       iv. Completely transparent and translucent
e. Fatuous              v. Partiality

Solution:

Predilection-    tendency, propensity or preference.                                              

Evanescence-   to disappear gradually  

Zephyr-    a gentle, mild breeze            

Diaphanous-  clear       

Fatuous-  foolish 

QUESTION: 54

DIRECTIONS for the question: Match the words in column I with their appropriate meanings in column 2.

Column 1               Column 2

a. Perspicacity       i. Doting upon wife
b. Uxorious            ii. Insignificant, ineffective person
c. Nebbish             iii. Undeveloped, immature
d. Chicanery          iv. Keenness of mental perception
e. Inchoate             v. to trick, to deceive

Solution:

Perspicacity- acumen,understanding    

Uxorious- foolishly fond of one's wife                                                                 

Nebbish- timid person                            

Chicanery- duplicity            

Inchoate- not yet completed or fully developed

QUESTION: 55

DIRECTIONS for the question: Choose the word from the options which is Opposite in meaning to the given word.

Risible:

Solution:

Risible' means laughable or amusing.

Ludicrous means stupid and foolish.

QUESTION: 56

DIRECTIONS for the question: Choose the word from the options which is Opposite in meaning to the given word.

Tenebrous:

Solution:

Tenebrous' means dark; shadowy or obscure.

quarrelsome means a person who is eager to fight.

QUESTION: 57

DIRECTIONS for the question: A partially completed paragraph is placed below, followed by fillers a, b, c. From options A, B, C and D, identify the right combination and order of fillers a, b or c that will best complete the paragraph.

In cultivating team spirit, one should not forget the importance of discipline. (________________) It is the duty of all the members of the team to observe discipline in its proper perspective.

a. A proper team spirit can seldom be based on discipline.

b. It is a well known fact that team spirit and discipline can never go hand in hand

c. Discipline in its right perspective would mean sacrificing self to some extent.

Solution:

Sentences (a) & (b) are going against the idea being conveyed in the sentence.

In this paragraph completion question, the main sentence is  about the positives of discipline.The next intermediate sentence needs to continue.'a' and 'b' mention the drawbacks of discipline and hence cannot be the intermediate sentences. the words like 'seldom' and 'never' contradicts the idea.Only statement 'c' satisfies that condition.Hence, the correct answer is option 4.

QUESTION: 58

DIRECTIONS for the question: A partially completed paragraph is placed below, followed by fillers a, b, c. From options A, B, C and D, identify the right combination and order of fillers a, b or c that will best complete the paragraph.

Forests are gifts of nature. (_______________). Yet, with the spread of civilisation, man has not only spurned the forests, but has been ruthlessly destroying them.

a. It is on historical record that the vast Sahara desert of today once used to be full of thick forests.

b. A large part of humanity still lives deep inside forests, particularly in the tropical regions of the earth.

c. Human evolution itself has taken place in the forests.

Solution:

The first sentence is mentioning  positivity i.e. forests are nature's gifts...last is mentioning that they are being destroyed.This means that the intermediate sentence needs to continue stating the positives of forest before the tone of the sentence changes. Both statements 'b' and 'c' satisfy this condition. Although very tempting, statement 'a' begins with the vast Sahara desert of today. If we consider this statement in the answer –it nullifies the presence of 'yet' in the last statement.Hence, the correct answer is option C.The sentence (a) is going out of the context. Sentences (b) & (c) are going with the idea being conveyed in the sentence. Therefore the right answer is option (c).

QUESTION: 59

DIRECTIONS for the question: Given below are the first and last parts of a sentence, and the remaining sentence is broken into four parts p, q, r and s. From A, B, C and D, choose the arrangement of these parts that forms a complete, meaningful sentence.

A number of measures ____________ of the Municipal Corporations.

p. the financial conditions

q. for mobilisation of resources

r. in order to improve

s. are being taken by the State Governments

Solution:

The correct sequence is  (sqrp).

rpsq was also logical but it is not in the options.

QUESTION: 60

DIRECTIONS for the question: Read the question and answer accordingly.

Q. Which of the following cannot be termed as an 'oxymoron'?

Solution:

The word 'oxymoron' means a figure of speech in which apparently contradictory terms appear in conjunction (e.g. faith unfaithful kept him falsely true ).

So all others are oxymoron except C

QUESTION: 61

DIRECTIONS for the question: In the following question, the options A, B, C and D have a word written in four different ways, of which only one is correct Identify the correctly spelt word

Solution:

As per Oxford dictionary the correct spellings are septuagenarian  which means a person who is between 70 and 79 years old.

QUESTION: 62

DIRECTIONS for the question: Choose the most logical order of sentences from among the given choices to construct a coherent paragraph.

  1. food supply
  2. storage, distribution and handling
  3. pastoral industry and fishing,
  4. besides increasing
  5. by preventing wastage in
  6. the productivity from agriculture
  7. can be increased
Solution:
QUESTION: 63

DIRECTIONS for the question: Select the right combination of numbers given in A, B, C and D so that letters arranged accordingly form a meaningful word.

 

Solution:

The word is 'overhead'

QUESTION: 64

DIRECTIONS for the question: Select the right combination of numbers given in A, B, C and D so that letters arranged accordingly form a meaningful word.

Solution:
QUESTION: 65

DIRECTIONS for the question: Solve the following question and mark the best possible option.

Two cars, an Alto and a Swift, start at the same time in opposite directions from two distinct points P and Q. Starting from P, the Alto reaches Q in 6 hours 20 minutes and the Swift starting from Q, reaches P in 4 hours 45 minutes. What is the speed of the Swift, if the speed of the Alto is 60 km/hr?

Solution:

The Alto and the Swift take 380 min and 285 min to travel the same distance. Suppose their speeds are A and S respectively. Then, Distance = 380A = 285S ⇒ A : S = 3 : 4. Since A = 60 kmph, hence S = 80 kmph.

Hence the answer is option D

QUESTION: 66

Mandeep and Jagdeep had gone to visit Ranpur, which is a seaside town and also known for the presence of the historical ruins of an ancient kingdom. They stayed in a hotel which is exactly 250 meters away from the railway station. At the hotel, Mandeep and Jagdeep learnt from a tourist information booklet that the distance between the sea-beach and the gate of the historical ruins is exactly 1 km. Next morning they visited the sea-beach to witness sunrise and afterwards decided to have a race from the beach to the gate of the ruins. Jagdeep defeated Mandeep in the race by 60 meters or 12 seconds. The following morning they had another round of race from the railway station to the hotel. How long did Jagdeep take to cover the distance on the second day?

Solution:

QUESTION: 67

Sujoy, Mritunjoy and Paranjoy are three friends, who have worked in software firms Z Solutions, G Softwares and R Mindpoyver respectively for a decade. The friends decided to float a new software firm named XY Infotech in January 2010. However, due to certain compulsions, Mritunjoy and Paranjoy were not able to immediately join the start-up in the appointed time. It was decided between friends that Sujoy will be running the venture as the full time Director during 2010, and Mritunjoy and Paranjoy will be able to join the business only in January 2011. In order to compensate Sujoy for his efforts, it was decided that he will receive 10 percent of the profits and in the first year will invest lesser amount as compared to his friends. The remaining profit will be distributed among the friends in line with their contribution. Sujoy invested Rs. 35,000/- for 12 months, Mritunjoy invested Rs. 1,30,000/- for 6 months and Paranjoy invested Rs. 75,000/- for 8 months. If the total profit earned during 2010 was Rs. 4,50,000/-, then Paranjoy earned a profit of:

Solution:

QUESTION: 68

In Bilaspur village, 12 men and 18 boys completed construction of a primary health centre in 60 days, by working for 7.5 hours a day. Subsequently the residents of the neighbouring Harigarh village also decided to construct a primary health centre in their locality, which would be twice the size of the facility built in Bilaspur. If a man is able to perform the work equal to the same done by 2 boys, then how many boys will be required to help 21 men to complete the work in Harigarh in 50 days, working 9 hours a day?

Solution:

QUESTION: 69

While preparing for a management entrance examination, Romit attempted to solve three papers, namely Mathematics, Verbal English and Logical Analysis, each of which have the full marks of 100. It is observed that one-third of the marks obtained by Romit in Logical Analysis is greater than half of his marks obtained in Verbal English by 5. He has obtained a total of 210 marks in the examination and 70 marks in Mathematics. What is the difference between the marks obtained by him in Mathematics and Verbal English?

Solution:

Let the marks obtained by Ronit in Logical Reasoning and Verbal Ability be 3a and 2b respectively.
According to the question,
a = b + 5 …(i)
Also, 3a + 2b + 70 = 210 …(ii)
From equations (i) and (ii),

Hence the value of a = 30 b = 25

Marks in mathematics = 70 ;  marks in verbal ability = 2*b = 50

required difference = 70-50 = 20.

Hence the answer is option C

QUESTION: 70

Aniket and Animesh are two colleagues working in PQ Communications, and each of them earned an investible surplus of Rs.1,50,000/- during a certain  period. While Animesh is a risk-averse person,  Aniket prefers to go for higher return opportunities. Animesh uses his entire savings in Public Provident Fund (PPF) and National Saving Certificates (NSC). It is observed that one-third of the savings made by Animesh in PPF is equal to one-half of his savings in NSC. On the other hand, Aniket distributes his investible funds in share market, NSC and PPF. It is observed that his investments in share market exceeds his savings in NSC and PPF by Rs.20,000/- and Rs.40,000/-respectively. The difference between the amount invested in NSC by
Animesh and Aniket is:

Solution:
QUESTION: 71

In March 2011, EF Public Library purchased a total of 15 new books published in 2010 with a total expenditure of Rs. 4500. Of these books, 13 books were purchased from MN Distributors, while the remaining two were purchased from UV Publishers. It is observed that one-sixth of the average price of all the 15 books purchased is equal to one-fifth of the average price of the 13 books obtained from MN Distributors. Of the two books obtained from UV Publishers, if one-third of the price of one volume is equal to one-half of the price Of the other, then the price of the two books are:

Solution:

Hence the answer is option 3

QUESTION: 72

DIRECTIONS for the question: Solve the following question and mark the best possible option.

There are four consecutive prime numbers written in ascending order of magnitude. The product of the first three is 7429 and last three is 12673. Find the first number.

Solution:

Let x1, x2, x3, & x4 be four prime nos. x1 . x2 . x3 = 7429 & x2 . x3 . x4 = 12673

Solving x1 = 17, x2 = 19, x3 = 23 & x4 = 29

Required Answer = 17

Hence the answer is option B

QUESTION: 73

A rectangular piece of paper is 22 cm. long and 10 cm. wide. A cylinder is formed by rolling the paper along its length. Find the volume of the cylinder.

Solution:

QUESTION: 74

Find the value of x from the following equation:

Log10 3 + log10 (4x + l) = log10 (x + 1) + 1

Solution:

Log103 + Log10(4x + 1) = Log10 (x + 1) + 1

Log103(4x + 1) = Log10 (x + 1) + Log1010

Log103(4x + 1) == Log1010(x+1)

⇒ 3(4x + 1) = 10 (x + 1) ⇒ 12x + 3 = 10x + 10

2x = 7 ⇒ x = 7/2


Hence the answer is option B

QUESTION: 75

Consider the volumes of the following objects and arrange them in decreasing order:

i. A rectangular parallelepiped of length 5 cm, breadth 3 cm and height 4 cm

ii. A cube of each side 4cm

iii. A cylinder of radius 3 cm and length 3 cm

iv. A sphere of radius 3 cm

Solution:

So volumes in decreasing order are iv, iii, ii, i.

Hence the answer is option A

QUESTION: 76

If x satisfies the inequality |x-l| + |x-2| + |x-3| ≥ 6, then:

Solution:
QUESTION: 77

A five digit number divisible by 3 is to be formed using the numerals 0,1,2,3,4 and 5 without repetition. The total number of ways in which this can be done is:

Solution:

The five digit number will either have 0 or it will not have 0.

Case i:

0 is included.

The five digits must be 0, 1, 2, 4, 5 (as the number has to be divisible by 3)

The number of five -digit numbers = 4 × 4 × 3 × 2 × 1 = 96

Case ii:

0 is excluded.

In this case, the five digits should be 1, 2, 3, 4 and 5.

Number of five digit numbers = 5 × 4 × 3 × 2 × 1 = 120

∴ Required count = 120 + 96 = 216 ; Hence,option D is the answer

QUESTION: 78

If 2, a, b, c, d, e, f and 65 form an arithmetic progression, find out the value of ‘e’.

Solution:

2, a, b, c, d, e, f & 65 form an AP

⇒ a = 2 + D, b = 2 + 2D, C = 2 + 3D, D = 2 + 4D, E = 2 + 5D, F = 2 + 6D and 65 = 2 + 7D

⇒ D = 9 ⇒ C = 2 + 3 × 9 = 29

The Series 2, 11, 20, 29, 38, 47, 56, 65.

Hence the answer is option B i.e 47

QUESTION: 79

A contract is to be completed in 56 days and 104 men are set to work, each working 8 hours a day. After 30 days, 2/5th of the work is finished. How many additional men may be employed so that work may be completed on time, each man now working 9 hours per day?

Solution:

According to the question

QUESTION: 80

A bag contains 8 red and 6 blue balls. If 5 balls are drawn at random, what is the probability that 3 of them are red and 2 are blue?

Solution:

Number of ways of selecting 3 red balls = 8C3
Number of ways of selecting 2 blue balls = 6C2

Hence the answer is option D

QUESTION: 81

In a circle, the height of an arc is 21 cm and the diameter is 84 cm. Find the chord of half of the arc ?

Solution: