SBI Clerk Prelims Mock Test - 5 - 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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. What solution did the author offer if this rising NPA is a transitory phenomenon?

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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. What does the author mean by the phrase “If they are the consequence of systemic ills”?

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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. Which of the following is not the synonym of the word “remedy”?

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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. Which of the following is not the synonym of the word “reluctant”?

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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. Which of the following is the synonym of the word “stipulations”?

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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. Which of the following is the synonym of the word “predicament”?

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.

With the Indian economy not picking up speed as was being anticipated, the spotlight is on the banking industry. It has been asked why the industry has been reluctant to pass on the double-dose rate reduction effected by the Reserve Bank of India in twin installments outside the policy cycle this year. The answer is not difficult to find. The rising load of bad loans has put banks — especially those in the public sector — in a pincer-like situation. A combination of factors saw gross Non Performing Assets drop from a high of 12 per cent in 2000-01 to 2.5 per cent in 2008-09. These factors included an improved economy, the establishment of debt recovery tribunals, and the enactment of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. But the trend was reversed and the figure rose to 4.6 per cent in September 2014. An estimate by rating agency Crisil suggests that ‘stressed assets’ could stay flat at 6 per cent in 2015-16. And Crisil put the value of such assets at a mind-boggling Rs.5.3 trillion. RBI Governor Raghuram Rajan has said he isn’t quite sure if the banking system has seen the peak yet in bad loans. Since public sector banks account for two-thirds of all banking activity, it is turning out to be a huge worry.

        Are bad loans a transitory phenomenon, or are they a chronic problem? If it indeed is a transitory issue, it should slowly evaporate as the economy picks up. If they are the consequence of systemic ills, then the solution lies in fixing the causes. If the economic slowdown is a part of the problem, scam-induced, court-ordained interventions in vital sectors such as coal, mining and telecom have added to the banks’ misery with bad loans. The stressed banks are wary of fresh lending. The need for stricter provisioning in view of the new Basel stipulations will add to their problems. Moreover, banks will no longer be allowed to treat restructured loans as standard ones. The revamped 5/25 scheme is essentially meant to remedy the situation. It allows banks to rejig long-term infrastructure loans by refinancing or selling loans every five years. But the scheme will at best mask stressed assets since banks need not report such loans. Bad loans have put the government in a moral predicament. Can it use the taxpayers’ money to nurse the banks back to health? Besides putting in place a watertight loan appraisal mechanism, the situation calls for a new framework outside the normal banking system to address the funding needs of long-term projects. Bad loans bode ill not just for banks but also the economy. The issue needs to be addressed with the utmost priority.

Q. Which of the following is the synonym of the word “bode”?

Directions: Rearrange the following sentences into a meaningful paragraph and then answer the questions given below it.

(A) Development of drought resistance could benefit large numbers of farmers.

(B) Hence the human race has no choice but to adapt to these impacts.

(C) lndia has to be concerned about climatic changes.

(D)This impact can run into decades and centuries.

(E) Environment day is thus an important occasion to assess the past and our future.

(F) Since there is a possibility of adverse impact on agriculture which could deter growth.

Q. Which is the THIRD sentence of the paragraph? 

Directions: Rearrange the following sentences into a meaningful paragraph and then answer the questions given below it.

(A) Development of drought resistance could benefit large numbers of farmers.

(B) Hence the human race has no choice but to adapt to these impacts.

(C) lndia has to be concerned about climatic changes.

(D)This impact can run into decades and centuries.

(E) Environment day is thus an important occasion to assess the past and our future.

(F) Since there is a possibility of adverse impact on agriculture which could deter growth.

Q. Which is the LAST (SIXTH) sentence of the paragraph?

Directions: Rearrange the following sentences into a meaningful paragraph and then answer the questions given below it.

(A) Development of drought resistance could benefit large numbers of farmers.

(B) Hence the human race has no choice but to adapt to these impacts.

(C) lndia has to be concerned about climatic changes.

(D)This impact can run into decades and centuries.

(E) Environment day is thus an important occasion to assess the past and our future.

(F) Since there is a possibility of adverse impact on agriculture which could deter growth.

Q. Which is the FIRST sentence of the paragraph?

Directions: Rearrange the following sentences into a meaningful paragraph and then answer the questions given below it.

(A) Development of drought resistance could benefit large numbers of farmers.

(B) Hence the human race has no choice but to adapt to these impacts.

(C) lndia has to be concerned about climatic changes.

(D)This impact can run into decades and centuries.

(E) Environment day is thus an important occasion to assess the past and our future.

(F) Since there is a possibility of adverse impact on agriculture which could deter growth.

Q. Which is the FIFTH’ sentence of the paragraph?

Directions: Rearrange the following sentences into a meaningful paragraph and then answer the questions given below it.

(A) Development of drought resistance could benefit large numbers of farmers.

(B) Hence the human race has no choice but to adapt to these impacts.

(C) lndia has to be concerned about climatic changes.

(D)This impact can run into decades and centuries.

(E) Environment day is thus an important occasion to assess the past and our future.

(F) Since there is a possibility of adverse impact on agriculture which could deter growth.

Q. Which is the SECOND sentence of the paragraph?

Directions: In each of the following sentences there are two blank spaces. Below each sentence there are five pairs of words denoted by numbers (1), (2), (3)), ,(4) and (5). Find out which pair of words can be filled up in the blanks in the sentence in the same sequence to make the sentence grammatically correct and meaningfully complete.

The criterion for________ a player should be based on his recent performance; but unfortunately, the journalists are ________ to be carried away by earlier successes.

Directions: In each of the following sentences there are two blank spaces. Below each sentence there are five pairs of words denoted by numbers (1), (2), (3)), ,(4) and (5). Find out which pair of words can be filled up in the blanks in the sentence in the same sequence to make the sentence grammatically correct and meaningfully complete.

For the last half century he ________ himself to public affairs ________ taking a holiday.

Directions: In each of the following sentences there are two blank spaces. Below each sentence there are five pairs of words denoted by numbers (1), (2), (3)), ,(4) and (5). Find out which pair of words can be filled up in the blanks in the sentence in the same sequence to make the sentence grammatically correct and meaningfully complete.

You will see signs of ________ everywhere, which speak well for the ________ of these people.

Directions: In each of the following sentences there are two blank spaces. Below each sentence there are five pairs of words denoted by numbers (1), (2), (3)), ,(4) and (5). Find out which pair of words can be filled up in the blanks in the sentence in the same sequence to make the sentence grammatically correct and meaningfully complete.

The police arrested Ramesh on a________ of theft but for lack of evidence ________ him.

Directions: In each of the following sentences there are two blank spaces. Below each sentence there are five pairs of words denoted by numbers (1), (2), (3)), ,(4) and (5). Find out which pair of words can be filled up in the blanks in the sentence in the same sequence to make the sentence grammatically correct and meaningfully complete.

The ________ violence that our town is witnessing has turned it into the most ________ town of our country

Directions : Read each sentence to find out whether there is any error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error the answer is (5). (Ignore errors of punctuation, if any.) 

The ground outside the village, l)/ abounding with frogs and snakes, 2)/ the enemies of mankind, 3)/ is soft and marshy. 4) / No error 5) 

Directions : Read each sentence to find out whether there is any error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error the answer is (5). (Ignore errors of punctuation, if any.) 

We are all short-sighted 1) / and very often see but one side of the matter. 2) / Our views are not extended 3)/ to all that has a connection with it. 4)/ No error 5)

Directions : Read each sentence to find out whether there is any error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error the answer is (5). (Ignore errors of punctuation, if any.) 

Just laws are no restraint on 1) / the freedom of the good, 2)/ for the good man desires nothing 3) / which a just law interfere with. 4)/ No error 5)

Directions : Read each sentence to find out whether there is any error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error the answer is (5). (Ignore errors of punctuation, if any.) 

Had he done 1) / his home work well 2) / he would not have 3)/ suffered this embarrassment. 4)/ No error 5).

Directions : Read each sentence to find out whether there is any error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is no error the answer is (5). (Ignore errors of punctuation, if any.)

He was angry with me 1) / because he thought my 2) / remark was 3) / aimed before him. 4) / No error 5) 

Directions : Which of the phrase (1), (2), (3), (4) given below each sentences should replace the phrase printed in bold to make the sentence grammatically correct? If the sentence is correct as it is, mark (5) is ‘No correction required’ as the answer. 

Banks must be ensured that 18 per cent of their loans is given to the agricultural sector.

Directions : Which of the phrase (1), (2), (3), (4) given below each sentences should replace the phrase printed in bold to make the sentence grammatically correct? If the sentence is correct as it is, mark (5) is ‘No correction required’ as the answer. 

The government has announced several initiatives benefiting to factory workers.

Directions : Which of the phrase (1), (2), (3), (4) given below each sentences should replace the phrase printed in bold to make the sentence grammatically correct? If the sentence is correct as it is, mark (5) is ‘No correction required’ as the answer. 

A date for the committee meeting to discuss the details of the proposal has yet to be decided.

Directions : Which of the phrase (1), (2), (3), (4) given below each sentences should replace the phrase printed in bold to make the sentence grammatically correct? If the sentence is correct as it is, mark (5) is ‘No correction required’ as the answer. 

With the raining heavily the multi-storey office building was badly damaged and collapsed.

Directions : Which of the phrase (1), (2), (3), (4) given below each sentences should replace the phrase printed in bold to make the sentence grammatically correct? If the sentence is correct as it is, mark (5) is ‘No correction required’ as the answer. 

The majority of our clients prefer our new office timings, which are convenience for them.