Test Level 2: Text Summary/Text Completion - CAT MCQ

Knowledge theorists opine that risk management is actually a combination of management of uncertainty, risk, equivocality and error. Uncertainty arises due to lack of information. As information gathering progresses, uncertainty transforms into risk. In uncertainty, outcomes cannot be estimated even randomly. This is possible in the case of risk. As information about markets and knowledge about possible outcomes increases, risk management provides solutions for cutting risk. Equivocality arises due to conflicting interpretations and the resultant lack of judgement. This happens despite adequate knowledge of the situation. Institutions develop control systems to reduce errors, information systems to reduce uncertainty, incentive systems to manage agency problems in a risk-reward framework and cultural systems to deal with equivocality.
Which of the following can't be inferred from the paragraph?

Not stagnating moment to moment is called achievement. Inward humility is achievement, outward courtesy is virtue. Establishing myriad truths in your nature is achievement; the mind being essentially detached from thoughts is virtue. Not departing from one's essential nature is achievement; acting adaptively without being affected is virtue. Continuity moment to moment, is achievement; balance and directness of mental activity are virtue. Refining your own nature is achievement. Refining your own person is virtue.
Which of the following can't be inferred from the paragraph?

Directions: Five alternative illustrations are given below the text representing an idiom, a phrase or an aphorism. Choose the option that best illustrates the essence of the phrase.
The only way to deal with the analysis paralysis is to ride the tide.

Directions: Five alternative illustrations are given below the text representing an idiom, a phrase or an aphorism. Choose the option that best illustrates the essence of the phrase.
India is sue generis.

Directions: Five alternative illustrations are given below the text representing an idiom, a phrase or an aphorism. Choose the option that best illustrates the essence of the phrase.
'Ever tried. Ever failed. No matter. Try again. Fail again. Fail better' (Samuel Beckett)

Directions: From the below given alternative summaries, choose the one that best presents the essence of the text.
The 'best and the brightest' in the IMF and the World Bank were aghast at the sudden collapse in southeast Asia. They thought they had been managing the world economy wonderfully well, following what came to be known as 'the Washington Consensus'. The Washington Consensus was a set of aphorisms shared by the IMF, the World Bank, the U.S. Treasury, Washington think-tanks and their friends around the world. The Washington Consensus called for an implicit faith in the efficacy of market economy, free movement of international capital and an unrestricted and free trade of goods throughout the world. Unable to place their finger on the precise reason for the collapse, they blamed short-term capital managed by financial intermediaries - commonly referred to as 'hot money'. In a globalised economy, they discovered with feigned wonderment, billions of dollars can be moved at the stroke of a computer key and this fact makes it almost impossible to manage or control its movement. At the same time, they said, imposing any restrictions on the movement of this 'hot money' is just not permissible, since it went against the basic credo of globalisation, namely, the free movement of capital. When Malaysia imposed a few restrictions, there was a howl of protest from all over the West. They said the imposition of such restrictions scared away capital from such countries and would prove counter-productive in the long run.

If there is some ambiguity about the knowledge an educated man should have, there is none at all about the skills. The first is ____