IBPS Bank PO Prelims Mock Test - 4 - Banking Exams MCQ

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. Which of the following is not true according to the passage.

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. What is the intention of the author behind this passage?

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. Which of the following can be inferred from the passage.

A) The author wants Public Sector to come forward and invest more in the economy.

B) The functioning of Mudra bank will have to be clarified.

C) There is no need for any financial institution to look after the functioning of refinancing.

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. What is the synonym of the word “tepid”?

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. What is the meaning of the word “benign”?

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. Which of the following is not the synonym of "moderate"?

Directions: Read the following passage carefully and answer the questions given below. Certain words/phrases have been printed in bold to help you locate them.

The gloom over economic growth appears to have dissipated a bit after the new numbers on National Income were released at the end of January 2015. However, there is continued scepticism about the numbers as several analysts feel that they are not in accord with the ground realities. According to the advanced estimates for 2014-15, the growth rate is projected at 7.4 per cent. What are the prospects for 2015-16? We do not have the data for past years reworked on the new base and the new methodology, and without such a time series it becomes hard to forecast. Perhaps, 2015-16 will be a shade better than 2014-15, if all the positive factors mentioned later come together. However, it will fall short of the Budget expectations of eight per cent.

        What are the favourable factors that can contribute to a better performance of the economy in 2015-16? First and foremost, there is the advantage of low crude oil prices. This will not only reduce the oil import bill and impact favourably on the current account balance, but will also moderate the price increase in general because petroleum products are used in the production of almost every commodity and service. Second, the credit rating agency, Moody’s decision to upgrade the outlook to “positive” may facilitate the inflow of capital. Though the recovery of the advanced economies is still tepid, the external environment as far as India is concerned may be benign. On the domestic front, there are signs of a gradual improvement in the investment “sentiment”. Still, there are several unfavourable or uncertain factors, chief among them being the uncertainty about the monsoon. We have not yet seen the full impact of the unseasonal rains of the last few months. The damage to crops has been extensive in several States and the natural consequence will be some pick up in food prices. Initial reports indicate that rainfall this time will be below normal. The impact on production will depend not only on the quantum of rainfall but also on its distribution over time and across States. Even though agriculture contributes only about 15 per cent to the GDP, any shortfall in agricultural production has serious implications. It fuels inflation and human distress is high as more than 50 per cent of the population depends on agriculture. Second, the several initiatives promised in the Budget will have the desired impact only if they are implemented speedily and effectively. For example, take the increased allocation of funds for railways and roads. Are these ministries adequately prepared to utilise these funds? Some of the initiatives such as the National Investment and Infrastructure Fund and Mudra Bank will take time to be set up and for their impact to be felt.

        The Economic Survey has persuasively argued for larger public investment at a time when private investment is yet to pick up. The same point was made by the Report of the Economic Advisory Council to the Prime Minister in September 2013, that said: “The focused attention that is being given to achieving the production and capacity creation targets in coal, power, road and railways should generate higher growth. In effect, the public sector would act as the driver of growth and crowd in private sector activities”. It is to be noted that capital expenditures of the Central government in the Budget are not significant. Capital expenditures are also not synonymous with investment. While capital expenditures in 2015-16 show an increase over the revised estimates of 2014-15, as a proportion of GDP, they remain the same as in the Budget estimate of 2014-15, i.e. at 1.7 per cent of GDP. In fact, the bulk of the investment has to come from public sector institutions such as Coal India and the Indian Railways. What is needed is for the government to come out with a statement regarding the quantum of investment that will be made by the various public sector institutions. This should be monitored every quarter and the actual investments made should be made public. Apart from making the government accountable, this will inspire confidence in investors.

        For raising the growth rate, the government relies on many of the initiatives announced in the Budget. Several of them need clarification and refinement. For example, how will the National Investment in Infrastructure Fund operate? Will it take the form of a trust or a non-banking financial company (NBFC)? The word “trust” was used in the Budget speech. The sooner the details are spelled out, the better it will be. Take another idea, of the Mudra Bank. To call the institution a “bank” will be incorrect if it is only to be a refinancing institution. Which are the last mile finance institutions which will be refinanced by this institution? Apparently, this institution will have to rely totally on Budget allocation. The idea of a refinancing institution is good but, once again, the details need to be spelled out. In fact, in this context, perhaps the best way to promote investment in the large-, medium- and small-scale sector is to go back to the days when we had development banks which provided long-term finance to large, medium and small industries. At the national level, the IDBI (Industrial Development Bank of India of that time) played a major role. At the State level, State finance corporations operated to provide long-term finance to medium and small enterprises. The development banks became universal banks and in that process we have lost out on long-term finance. Even the new initiative of allowing commercial banks to raise infrastructure bonds may not be adequate. Very soon, they will reach the limits of exposure with respect to industries and groups. And, it is also difficult to have firewalls separating short term from long-term credit. While the new ideas promoted in the Budget are welcome, it is time to think in terms of creating long-term finance institutions to provide equity and long-term loans to large and medium industries. 

Q. What is the synonym of the word “accord”?

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

A) Depression is possible and if they don't get enough exercise, obesity is also on the cards.

B) A lot of people keep dogs tied all day.

C) They could exhibit other behavioural disorders such as chewing on their own leg or licking themselves constantly out of boredom, causing skin problems.

D) The other major risk is exposure to the elements for example, when they are tied in direct sunlight; they are at risk of dehydration and heat stroke.

E) Habitual tying is never a good thing.

F) This causes behavioural issues – they might start to become excessively vociferous or aggressive.

Q. Which of the following would be the FOURTH sentence after rearrangement ?

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

A) Depression is possible and if they don't get enough exercise, obesity is also on the cards.

B) A lot of people keep dogs tied all day.

C) They could exhibit other behavioural disorders such as chewing on their own leg or licking themselves constantly out of boredom, causing skin problems.

D) The other major risk is exposure to the elements for example, when they are tied in direct sunlight; they are at risk of dehydration and heat stroke.

E) Habitual tying is never a good thing.

F) This causes behavioural issues – they might start to become excessively vociferous or aggressive.

Q. Which of the following would be the FIRST sentence after rearrangement ?

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

A) Depression is possible and if they don't get enough exercise, obesity is also on the cards.

B) A lot of people keep dogs tied all day.

C) They could exhibit other behavioural disorders such as chewing on their own leg or licking themselves constantly out of boredom, causing skin problems.

D) The other major risk is exposure to the elements for example, when they are tied in direct sunlight; they are at risk of dehydration and heat stroke.

E) Habitual tying is never a good thing.

F) This causes behavioural issues – they might start to become excessively vociferous or aggressive.

Q. Which of the following would be the THIRD sentence after rearrangement ?

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

A) Depression is possible and if they don't get enough exercise, obesity is also on the cards.

B) A lot of people keep dogs tied all day.

C) They could exhibit other behavioural disorders such as chewing on their own leg or licking themselves constantly out of boredom, causing skin problems.

D) The other major risk is exposure to the elements for example, when they are tied in direct sunlight; they are at risk of dehydration and heat stroke.

E) Habitual tying is never a good thing.

F) This causes behavioural issues – they might start to become excessively vociferous or aggressive.

Q. Which of the following would be the FIFTH sentence after rearrangement ?

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

A) Depression is possible and if they don't get enough exercise, obesity is also on the cards.

B) A lot of people keep dogs tied all day.

C) They could exhibit other behavioural disorders such as chewing on their own leg or licking themselves constantly out of boredom, causing skin problems.

D) The other major risk is exposure to the elements for example, when they are tied in direct sunlight; they are at risk of dehydration and heat stroke.

E) Habitual tying is never a good thing.

F) This causes behavioural issues – they might start to become excessively vociferous or aggressive.

Q. Which of the following would be the SECOND sentence after rearrangement ?

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In the following passage, some of the words have been left out, each of which is indicated by a number. Find the suitable word from the options given against each number and fill up the blanks with appropriate words to make the paragraph meaningful.

After ten years of (16) inflation, prices have hiked 7.5% in the third week of July. This looks scary—after all, Indians had got used to prices crawling up by 2% in the last two years, and a 10-year average inflation rate of about 5%——but you shouldn't worry. This burst of inflation is the result of three factors that have come together unexpectedly, are unlikely to [17] for  long and are unlikely to [18] up together again: a[n] [19] rise in global oil prices, a monsoon that arrived late and a spike in global metal prices. North Sea crude has crossed $42 per barrel, driven up by low petroleum [20] and soaring demand in the US as war production heats up. Oil markets are also spooked by the [21] of Russian oil supplies falling on the back of the Yukos— Sibneft probe. There’s little that the government can do to [22] users from soaring oil prices—indeed, it shouldn't, if it wants to [23] efficiency. Higher transport costs have pushed up rates of vegetables and fruits. Farm produce could also get affected by rains that arrived too late for kharif sowing. China is [24] up steel and other metals from all over the world to [25] a construction boom ahead of the 2008 Olympics, making metal prices soar all over the world, and sparking inflation in India.

Directions: In each sentence below four words have been printed in bold which are numbered 1), 2), 3) and 4). One of these words may be misspelt or inappropriate in the context of the sentence. Find out the wrongly spelt or inappropriate words. The number of that word is the answer. If all four words are correctly spelt and appropriate the answer is 5), ie 'All correct.'

You will find their homes adourned 1)/ with pictures of Hindu deities 2)/ and their immense respect for Hindu gods and goddesses even 3)/ when their religious practices are Islamic 4)/. All correct 5).

Directions: In each sentence below four words have been printed in bold which are numbered 1), 2), 3) and 4). One of these words may be misspelt or inappropriate in the context of the sentence. Find out the wrongly spelt or inappropriate words. The number of that word is the answer. If all four words are correctly spelt and appropriate the answer is 5), ie 'All correct.'

Oppressive working conditions have 1)/ steadily improved in the last 6 months 2)/, but more must be done to reduce 3)/ the amount of overtime that employees work. 4)/ All correct 5).

Directions: In each sentence below four words have been printed in bold which are numbered 1), 2), 3) and 4). One of these words may be misspelt or inappropriate in the context of the sentence. Find out the wrongly spelt or inappropriate words. The number of that word is the answer. If all four words are correctly spelt and appropriate the answer is 5), ie 'All correct.'

If Shreya could seen 1)/ the powerful women 2)/ in her party now 3)/, she would probably be tickled 4)/. All correct 5).

Directions: In each sentence below four words have been printed in bold which are numbered 1), 2), 3) and 4). One of these words may be misspelt or inappropriate in the context of the sentence. Find out the wrongly spelt or inappropriate words. The number of that word is the answer. If all four words are correctly spelt and appropriate the answer is 5), ie 'All correct.'

Obviously, this goes way 1)/, way deeper than 2)/ social awkwordness 3)/ or inept phraseology. 4)/ All correct 5).

Directions: In each sentence below four words have been printed in bold which are numbered 1), 2), 3) and 4). One of these words may be misspelt or inappropriate in the context of the sentence. Find out the wrongly spelt or inappropriate words. The number of that word is the answer. If all four words are correctly spelt and appropriate the answer is 5), ie 'All correct.'

The musical faternity 1)/ at large does not feel it necessary to give karnatik music, 2)/ especially its compositional forms, 3)/ a purely aesthetic thought. 4)/ All correct 5).