English Quiz

Directions (Q. 1-15): Read the passage carefully and answer the questions given below it. Certain words/ phrases are given in bold to help you locate them while answering some of the questions.

India’s banking sector may be getting ready for a wave of consolidation as the country tries to build institutions of world-class proportions. Four big state-run banks — State Bank of India, Punjab National Bank, Bank of Baroda and Bank of India—have already begun an exercise to identify takeover targets to gain access to franchises that would augment their capabilities, said three top bankers familiar with the move. The top managements of the four banks are in the process of preparing a blueprint that would explain the rationale for absorbing one or two entities, said
the people cited above, none of whom wanted to be named.

Employees at these state-run banks are engaged in the exercise after finance minister Arun Jaitley gave the lenders the go-ahead to decide how they would strategise to remain relevant in the emerging economic scenario.
“We are hearing from the corridors of finance ministry that there is seriousness on consolidation of banks,” said an executive from one of the top four banks. “The sense we are getting is that first there could be merger of at least one SBI associate bank with SBI to kick off the consolidation process.” Although no names of likely acquisition targets are being discussed at these four banks, the key conditions for a smaller bank will be regional, technological and cultural advantages. For instance, a bank such as Bank of Baroda, which does not have a presence in the East, may prefer one from that part of the country.
State-run banks have weakened over the years as governments have treated them as an organ of the administration and used them to push their social agenda.
Meanwhile, lenders in neighbouring China have acquired scale while those in India are puny by comparison, giving them little clout in global markets.
The economic downturn, with growth having almost halved from the peak, has exposed the fault lines in the system. The parlous financial position of the government has left banks capital-starved — the allocation for this year is tiny compared with the amount needed to meet Basel III standards. And, to access capital from the market, the state-run banks need a strategy to turn more profitable.
Currently, they are labouring under bad debt on account of companies finding it difficult to repay loans because of the slump.
“Government has made it clear that they will not give any capital,” said one of the bankers. “Banks that have the capital and the capability to raise capital could look at acquisitions,” he said, while adding “Nothing has reached the drawing board. Banks are only doing all kinds of permutations and combinations.”
To be sure, state-run bank consolidation has been discussed for nearly a decade, but little progress has been made, except for shotgun weddings that were aimed at rescuing ventures in poor shape. Inertia among banks, cultural issues and fears of trade union unrest held up any such move. That may now change with the new government.
“There have been some suggestions for consolidation of public sector banks,” Jaitley said in his July 10 Budget speech. “Government, in principle, agrees to consider these suggestions.”
A committee set up by the Reserve Bank of India under former Axis Bank chairman PJ Nayak had suggested that the health of state-run banks was poor. To strengthen them, the report said it would be better “either to privatise these banks and allow their future solvency to be subject to market competition, including through mergers; or to design a radically new governance structure for these banks which would better ensure their ability to compete successfully, in order that repeated claims for capital support from the government, unconnected with market returns, are avoided.”
The market share of the public sector banks is forecast to decline from 80% in 2000 to just over 60% in 2025, Nayakhad said. They stack up poorly in many respects against non-state institutions. For instance, net profit per employee at the new private sector banks was about four times thatof the SBI Group in the year ended March 2013

1.Why did the state-run banks get weakened over the years?
(A) Because these banks did their banking business without any restrictions.
(B) Because these banks were under obligation to obey the dictates of the government, leaving aside their main business.
(C) Because, besides doing banking business, these banks were used as an organ of the government administration.
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) Only (C)
5) All (A), (B) and (C)

2.What has been suggested by PJ Nayak Committee for improving the condition of state-run banks?
(A) Privatise these banks and allow their future solvency to be subject to market competition.
(B) Allow merger of these banks into a bigger one under the direct control of the RBI.
(C) Design a radically new governance structure for these banks to make them financially strong enough to compete successfully.
1) Either (A) or (B) 2) Either (B) or (C)
3) Either (A) or (C) 4) Only (C)
5) All (A), (B) and (C)

3.Which of the following is not true in the context of the passage?
1) Four big state-run banks have begun to identify takeover targets.
2) The finance minister has given free hand to staterun banks to make their own strategy for banking business.
3) The four big-state-run banks have already decided the names of some small banks likely to be taken over.
4) According to PJ Nayak Committee report, the staterun banks were not performing well.
5) None of these

4.Why have banks turned capital-starved? Answer in the context of the passage.
1) Because of excessive loans sanctioned to mala fide customers
2) Because of bad monetary policy of the RBI
3) Because of the excessive payments towards
government-sponsored schemes without appropriate provision for them
4) Because of the dangerous financial position of the government
5) All the above

5.Which of the following is possibly the most appropriate title for the passage?
1) Policy Paralysis of the Central Government
2) The Economic Downturn
3) Union Budget 2014: A Review
4) Consolidation of Banks
5) Managerial Autonomy for Public Sector Banks

6.Which of the following statements regarding the consolidation of state-run banks is/are true? Answer in the context of the passage.
1) Efforts for consolidation of state-run banks are on for past one decade but nothing remarkable has come out as yet.
2) The consolidation of state-run banks is a complex task and it will take some more years for its completion.
3) Banks are doing all kinds of permutations and combinations but the result is cipher.
4) Only 1) and 2)
5) Only 1) and 3)

7.What does the phrase ‘kick off’ mean as used in the passage?
1) Discontinue
2) Breakdown
3) Smash
4) Knock
5) Begin

8. Under the current scenario what do state-run banks need to do to access capital from the market?
1) They need to float public shares.
2) They need a strategy to earn more profit.
3) They should increase lending rate to attract depositors.
4) They should announce handsome returns to depositors.
5) All the above

9.What is the justification of the author saying that the economic downturn is the result of systemic fault? Give your answer in the context of the passage.
(A) That the catastrophic performance of the financial market was the result of the violation of Sebi’s guidelines
(B) That economic growth has reduced to half its peak value.
(C) Monetary authorities have aggressively reduced the interest rates to unprecedented levels.
1) Only (A)
2) Only (B)
3) Only (C)
4) Only (A) and (B)
5) All (A), (B) and (C)

Directions (Q. 180-183): Choose the word which is most similar in meaning to the word printed in bold as used in the passage.

10. Acquisition
1) redemption
2) forfeit
3) possession
4) dearth
5) recovery

11. Parlous
1) harmful
2) strong
3) critical
4) powerful
5) safe

12. Inertia
1) inactivity
2) liveliness 3
) awakening
4) interest
5) concern

13. Solvency
1) destitution
2) deprivation
3) impotency
4) inadequacy
5) financial competence

Directions (Q. 14-15): Choose the word/group of words which is most opposite in meaning of the word/ group of words printed in bold as used in the passage.

14. Puny
1) trivial
2) strong
3) inferior
4) tiny
5) weak

15. Augment
1) reinforce
2) strengthen
3) magnify
4) weaken
5) multiply

1. 2
2. 3
3. 3
4. 4
5. 4
6. 1
7. 5
8. 2
9. 2
10. 3
11. 3
12. 1
13. 5
14. 2
15. 4
Directions (Q. 1-15): Read the passage carefully and answer the questions given below it. Certain words/ phrases are given in bold to help you locate them while answering some of the questions.

India’s banking sector may be getting ready for a wave of consolidation as the country tries to build institutions of world-class proportions. Four big state-run banks — State Bank of India, Punjab National Bank, Bank of Baroda and Bank of India—have already begun an exercise to identify takeover targets to gain access to franchises that would augment their capabilities, said three top bankers familiar with the move. The top managements of the four banks are in the process of preparing a blueprint that would explain the rationale for absorbing one or two entities, said
the people cited above, none of whom wanted to be named.

Employees at these state-run banks are engaged in the exercise after finance minister Arun Jaitley gave the lenders the go-ahead to decide how they would strategise to remain relevant in the emerging economic scenario.
“We are hearing from the corridors of finance ministry that there is seriousness on consolidation of banks,” said an executive from one of the top four banks. “The sense we are getting is that first there could be merger of at least one SBI associate bank with SBI to kick off the consolidation process.” Although no names of likely acquisition targets are being discussed at these four banks, the key conditions for a smaller bank will be regional, technological and cultural advantages. For instance, a bank such as Bank of Baroda, which does not have a presence in the East, may prefer one from that part of the country.
State-run banks have weakened over the years as governments have treated them as an organ of the administration and used them to push their social agenda.
Meanwhile, lenders in neighbouring China have acquired scale while those in India are puny by comparison, giving them little clout in global markets.
The economic downturn, with growth having almost halved from the peak, has exposed the fault lines in the system. The parlous financial position of the government has left banks capital-starved — the allocation for this year is tiny compared with the amount needed to meet Basel III standards. And, to access capital from the market, the state-run banks need a strategy to turn more profitable.
Currently, they are labouring under bad debt on account of companies finding it difficult to repay loans because of the slump.
“Government has made it clear that they will not give any capital,” said one of the bankers. “Banks that have the capital and the capability to raise capital could look at acquisitions,” he said, while adding “Nothing has reached the drawing board. Banks are only doing all kinds of permutations and combinations.”
To be sure, state-run bank consolidation has been discussed for nearly a decade, but little progress has been made, except for shotgun weddings that were aimed at rescuing ventures in poor shape. Inertia among banks, cultural issues and fears of trade union unrest held up any such move. That may now change with the new government.
“There have been some suggestions for consolidation of public sector banks,” Jaitley said in his July 10 Budget speech. “Government, in principle, agrees to consider these suggestions.”
A committee set up by the Reserve Bank of India under former Axis Bank chairman PJ Nayak had suggested that the health of state-run banks was poor. To strengthen them, the report said it would be better “either to privatise these banks and allow their future solvency to be subject to market competition, including through mergers; or to design a radically new governance structure for these banks which would better ensure their ability to compete successfully, in order that repeated claims for capital support from the government, unconnected with market returns, are avoided.”
The market share of the public sector banks is forecast to decline from 80% in 2000 to just over 60% in 2025, Nayakhad said. They stack up poorly in many respects against non-state institutions. For instance, net profit per employee at the new private sector banks was about four times thatof the SBI Group in the year ended March 2013

1.Why did the state-run banks get weakened over the years?
(A) Because these banks did their banking business without any restrictions.
(B) Because these banks were under obligation to obey the dictates of the government, leaving aside their main business.
(C) Because, besides doing banking business, these banks were used as an organ of the government administration.
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) Only (C)
5) All (A), (B) and (C)

2.What has been suggested by PJ Nayak Committee for improving the condition of state-run banks?
(A) Privatise these banks and allow their future solvency to be subject to market competition.
(B) Allow merger of these banks into a bigger one under the direct control of the RBI.
(C) Design a radically new governance structure for these banks to make them financially strong enough to compete successfully.
1) Either (A) or (B) 2) Either (B) or (C)
3) Either (A) or (C) 4) Only (C)
5) All (A), (B) and (C)

3.Which of the following is not true in the context of the passage?
1) Four big state-run banks have begun to identify takeover targets.
2) The finance minister has given free hand to staterun banks to make their own strategy for banking business.
3) The four big-state-run banks have already decided the names of some small banks likely to be taken over.
4) According to PJ Nayak Committee report, the staterun banks were not performing well.
5) None of these

4.Why have banks turned capital-starved? Answer in the context of the passage.
1) Because of excessive loans sanctioned to mala fide customers
2) Because of bad monetary policy of the RBI
3) Because of the excessive payments towards
government-sponsored schemes without appropriate provision for them
4) Because of the dangerous financial position of the government
5) All the above

5.Which of the following is possibly the most appropriate title for the passage?
1) Policy Paralysis of the Central Government
2) The Economic Downturn
3) Union Budget 2014: A Review
4) Consolidation of Banks
5) Managerial Autonomy for Public Sector Banks

6.Which of the following statements regarding the consolidation of state-run banks is/are true? Answer in the context of the passage.
1) Efforts for consolidation of state-run banks are on for past one decade but nothing remarkable has come out as yet.
2) The consolidation of state-run banks is a complex task and it will take some more years for its completion.
3) Banks are doing all kinds of permutations and combinations but the result is cipher.
4) Only 1) and 2)
5) Only 1) and 3)

7.What does the phrase ‘kick off’ mean as used in the passage?
1) Discontinue
2) Breakdown
3) Smash
4) Knock
5) Begin

8. Under the current scenario what do state-run banks need to do to access capital from the market?
1) They need to float public shares.
2) They need a strategy to earn more profit.
3) They should increase lending rate to attract depositors.
4) They should announce handsome returns to depositors.
5) All the above

9.What is the justification of the author saying that the economic downturn is the result of systemic fault? Give your answer in the context of the passage.
(A) That the catastrophic performance of the financial market was the result of the violation of Sebi’s guidelines
(B) That economic growth has reduced to half its peak value.
(C) Monetary authorities have aggressively reduced the interest rates to unprecedented levels.
1) Only (A)
2) Only (B)
3) Only (C)
4) Only (A) and (B)
5) All (A), (B) and (C)

Directions (Q. 180-183): Choose the word which is most similar in meaning to the word printed in bold as used in the passage.

10. Acquisition
1) redemption
2) forfeit
3) possession
4) dearth
5) recovery

11. Parlous
1) harmful
2) strong
3) critical
4) powerful
5) safe

12. Inertia
1) inactivity
2) liveliness 3
) awakening
4) interest
5) concern

13. Solvency
1) destitution
2) deprivation
3) impotency
4) inadequacy
5) financial competence

Directions (Q. 14-15): Choose the word/group of words which is most opposite in meaning of the word/ group of words printed in bold as used in the passage.

14. Puny
1) trivial
2) strong
3) inferior
4) tiny
5) weak

15. Augment
1) reinforce
2) strengthen
3) magnify
4) weaken
5) multiply

1. 2
2. 3
3. 3
4. 4
5. 4
6. 1
7. 5
8. 2
9. 2
10. 3
11. 3
12. 1
13. 5
14. 2
15. 4

No comments:

Post a Comment