Reading Comprehension Passage: 64 | 100 RC`s for Government Exams Preparation - Bank Exams PDF Download

Statement I: An increase in gold imports increases our dependency on other nations and is opposite to what the demand of the question.
Statement II implies investors venturing out of India (setting up facilities outside of India) rather than investing here.
Statement III again encourages investors to look for outside avenues for investments and is opposite to what the question asks.
Hence, none of the options are correct.
Option E is correct.

As per the passage, India is undergoing many changes which are structural in nature and target the foundation of the economy. Such changes have a long term impact. Tectonic here basically means a change in the very foundations on which India is built.
Out of the options, C conveys this perfectly.
Hence, Option C is correct.

Refer to paragraph 3:
'..On the external front, India has never been in a better position with FX reserves at a record high of $390 billion. This is a far cry from the humble beginnings of less than $1 billion in 1991 at the dawn of our liberalization reforms. Trade deficit remains under control as commodity prices remain low on the back of structural developments in the crude oil market that are keeping prices capped at $50 per barrel...'.
From the fragments highlighted above, Statement I is incorrect as the passage states FX reserves to be at a record high and not second highest...'
Statement II is nowhere mentioned in the passage.
Statement III can be seen in the last line of the passage. This is correct.
Hence, Option B is correct.

Refer to paragraph 1:
'..The Indian scouting tiger is on the prowl again. India remains among the top three investment destinations for global investors looking at emerging markets. In the last three years alone, offshore long-term investment flows into India through FII/FDI route is nearly $150 billion, one of the strongest ever witnessed. India has increasingly become a hotspot for global investments not just in the listed equity & fixed income markets, but in the unlisted/private market space as well. Recently, we witnessed one of the largest ever private investments in an Indian technology company by an offshore investor adding further impetus to yet another pool of investment into India; the growing start-up eco-system...'.
As per the passage, Statements II and III can be seen in the highlighted fragments while statement I is nowhere mentioned.
Hence, Option D is correct.

Refer to paragraph 4:
‘…Aware of these gradual tectonic changes underway in the economy, domestic investors including HNIs have been swift in shifting their gaze inward rather than outward. The Mutual Funds annual SIP book is now upwards of $10 billion, acting as a strong stabilizing factor for liquidity. Falling interest rates and lower inflation is causing a structural shift into financials assets from physical assets with the bulk of domestic flows into equities. In fact, household financial savings has for the first time in years exceeded household physical savings, which should help in channeling savings into investments. This paradigm shift is underway not just among the population elite but in the mid-to lower-income strata as well, making this a long term structural change in investing patterns…’.
The highlighted fragments make it clear that:
Statement I is correct.
Statement II is the opposite of what is stated in the passage.
Statement III is correct.
Hence, option A is correct.

Paradigm here means something that sets an example for others to follow/ something that has not been tried before/ unprecedented.
Missive means a memo/ form of written communication and is absurd here.
Caterwaul means to make a screeching/crying noise.
Exemplar means ideal/epitome/ setting an example. Hence, this is correct.
Option A is correct.

Skepticism refers to being doubtful/suspicious.
Heresy means having an unorthodox opinion. It is used in the context of religious matters mostly. Hence, this is incorrect.
Modesty means to be humble and is irrelevant here.
Certainty is the opposite of skepticism.
Cavil means to quibble/criticize/ spar. It is irrelevant here.
Suspicious is the word we are looking for.
Hence, Option D is correct.