Daily Passage Test for CLAT - Oct 4 MCQs & solutions Free
MCQ Practice Test & Solutions: Daily Passage Test for CLAT - Oct 4 (5 Questions)
You can prepare effectively for CLAT Daily Passage Practice for CLAT with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Daily Passage Test for CLAT - Oct 4". These 5 questions have been designed by the experts with the latest curriculum of CLAT 2026, to help you master the concept.
Test Highlights:
- - Format: Multiple Choice Questions (MCQ)
- - Duration: 10 minutes
- - Number of Questions: 5
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Directions: Read the following passage and answer the question.
In recent times, there has been a great euphoria about investing in cryptocurrencies. For any instrument to classify as a currency, it must have the following features: One, it is a promissory note wherein the issuer is promising the bearer or the holder a value. Two, it is backed by a sovereign nation and, therefore, there is never a question of any default in executing the promise. Three, the printing of currency in either physical or digital form is always based on some tangible asset, like gold or a basket of goods. From the above, it's clear that cryptocurrency can never be a currency. Can crypto then be considered an asset? An asset is something that has a tangible value. Even if its immediate utility is intangible, an asset should have some tangible benefits. The cryptocurrencies being promoted currently — bitcoin, litecoin, ethereum — are nothing but gaming points. Whenever a discussion on cryptos takes place, promoters talk of blockchain technology. This technology is just a technique to account for transactions.
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Q. What is the primary focus of the passage?
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Detailed Solution: Question 1
Directions: Read the following passage and answer the question.
In recent times, there has been a great euphoria about investing in cryptocurrencies. For any instrument to classify as a currency, it must have the following features: One, it is a promissory note wherein the issuer is promising the bearer or the holder a value. Two, it is backed by a sovereign nation and, therefore, there is never a question of any default in executing the promise. Three, the printing of currency in either physical or digital form is always based on some tangible asset, like gold or a basket of goods. From the above, it's clear that cryptocurrency can never be a currency. Can crypto then be considered an asset? An asset is something that has a tangible value. Even if its immediate utility is intangible, an asset should have some tangible benefits. The cryptocurrencies being promoted currently — bitcoin, litecoin, ethereum — are nothing but gaming points. Whenever a discussion on cryptos takes place, promoters talk of blockchain technology. This technology is just a technique to account for transactions.
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Q. Which statement undermines the author's notion that "this technology is simply a method for tracking transactions"?
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Detailed Solution: Question 2
Directions: Read the following passage and answer the question.
In recent times, there has been a great euphoria about investing in cryptocurrencies. For any instrument to classify as a currency, it must have the following features: One, it is a promissory note wherein the issuer is promising the bearer or the holder a value. Two, it is backed by a sovereign nation and, therefore, there is never a question of any default in executing the promise. Three, the printing of currency in either physical or digital form is always based on some tangible asset, like gold or a basket of goods. From the above, it's clear that cryptocurrency can never be a currency. Can crypto then be considered an asset? An asset is something that has a tangible value. Even if its immediate utility is intangible, an asset should have some tangible benefits. The cryptocurrencies being promoted currently — bitcoin, litecoin, ethereum — are nothing but gaming points. Whenever a discussion on cryptos takes place, promoters talk of blockchain technology. This technology is just a technique to account for transactions.
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Q. What function does the statement 'An asset is something that has a tangible value' serve within the passage?
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Detailed Solution: Question 3
Directions: Read the following passage and answer the question.
In recent times, there has been a great euphoria about investing in cryptocurrencies. For any instrument to classify as a currency, it must have the following features: One, it is a promissory note wherein the issuer is promising the bearer or the holder a value. Two, it is backed by a sovereign nation and, therefore, there is never a question of any default in executing the promise. Three, the printing of currency in either physical or digital form is always based on some tangible asset, like gold or a basket of goods. From the above, it's clear that cryptocurrency can never be a currency. Can crypto then be considered an asset? An asset is something that has a tangible value. Even if its immediate utility is intangible, an asset should have some tangible benefits. The cryptocurrencies being promoted currently — bitcoin, litecoin, ethereum — are nothing but gaming points. Whenever a discussion on cryptos takes place, promoters talk of blockchain technology. This technology is just a technique to account for transactions.
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Q. While highlighting that crypto promoters have elevated fraud to a higher level with minimal risk of being apprehended, the author contends that:
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Detailed Solution: Question 4
Directions: Read the following passage and answer the question.
In recent times, there has been a great euphoria about investing in cryptocurrencies. For any instrument to classify as a currency, it must have the following features: One, it is a promissory note wherein the issuer is promising the bearer or the holder a value. Two, it is backed by a sovereign nation and, therefore, there is never a question of any default in executing the promise. Three, the printing of currency in either physical or digital form is always based on some tangible asset, like gold or a basket of goods. From the above, it's clear that cryptocurrency can never be a currency. Can crypto then be considered an asset? An asset is something that has a tangible value. Even if its immediate utility is intangible, an asset should have some tangible benefits. The cryptocurrencies being promoted currently — bitcoin, litecoin, ethereum — are nothing but gaming points. Whenever a discussion on cryptos takes place, promoters talk of blockchain technology. This technology is just a technique to account for transactions.
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Q. What can be deduced from the passage?
Many frauds like multi-marketing schemes, chit funds or deposit frauds were disguised as timeshare schemes, gold and land investments, and promised hefty returns. These pyramid schemes were carried out over a long period to evade the law. Nevertheless, fraud could still be established, the trail of funds could be traced and the perpetrators identified. Crypto promoters have taken fraud to another level with little scope of their getting caught.
The recent aggressive promotion of cryptocurrencies on print and visual media would perhaps prove to be the undoing of their promoters. It is only a matter of time before financial fraud prevention enforcement agencies like the CBI and ED catch up with them. But millions may lose their hard-earned money by then.
[Extracted with edits and revisions, from Opinion, The Indian Express]
Detailed Solution: Question 5
