English Quiz for IBPS PO Mains | 16th December English Quiz

English Quiz for IBPS PO Mains :

Improve your English with English quiz. English Quiz to help you improve your score for exams like Bank, SSC, Railway, UPSC, UPSSSC, CDS, UPTET, KVS, DSSSB and other Government exams.

Directions (1-5): Read the following passage carefully and answer the questions given below them.

Paragraph 1: Many commercial banks in India are under financial stress. This has imparted a fragility to the banking system as a whole. Scams and scandals surface from time to time, making headline news. There is also a quiet crisis that runs deep. It is not audible yet. But it is mounting, since recurring failures of regulation or governance have not led to any accountability or corrective action. Some erosion of confidence is no surprise. If the problem continues to be neglected, a trust deficit could develop over time.

Paragraph 2: The fundamental problem is the non-performing assets (NPAs) of commercial banks. An asset becomes non-performing when it ceases to yield any interest or income for the bank. Simply put, it is a bad loan. Such NPAs are rising rapidly. This rise is partly a consequence of the far more rigorous asset quality review by the Reserve Bank of India (RBI) based on its income-recognition and asset-classification norms. The RBI financial stability report shows that for all commercial banks, gross NPAs as a proportion of total assets were 9.6% in March 2017 and an estimated 10.8% in March 2018. For public sector banks, these proportions were higher at 11.4% and 14.5%, respectively. The problem is obviously serious in public sector banks. Even if private sector banks fare better, they also have the same problem. The systemic problem of bad loans needs to be addressed.

Paragraph 3: The underlying factors are common. Lending at political behest plagues public sector banks but private sector banks are not immune either. Lending could be driven by corrupt behaviour if bank managers collude with corporate borrowers to collect margins for themselves without assessing risk before extending bad loans. Lending could also be inept if bank managers do not have the ability to assess risk or do not exercise due diligence. These reasons have always existed. The problem is not new. It has just grown rapidly over the past decade.

Paragraph 4: Until the early 2000s, development finance institutions (DFIs) had done much of the lending to corporate entities for investment in the manufacturing or services sectors. These began winding down in 2000 and were closed down in 2005. For a while, companies used retained profits or cash reserves, before turning to external commercial borrowing, the domestic bond market, or equity markets as sources of finance. It was not long before borrowing from commercial banks emerged as an important alternative source of corporate financing. Apart from behest, corrupt or inept lending, some systemic problems arose. Commercial banks simply did not have the capability to assess credit risk on long-term investment lending because they have always been engaged in advancing short-term working capital. Moreover, commercial banks were caught in a maturity mismatch, because they borrowed short from depositors but had to lend long to investors.

Paragraph 5: In countries that are latecomers to industrialization, this role has always been performed by development banks, which meet the investment financing needs of new firms in underdeveloped manufacturing sectors that are not met by capital markets or commercial banks because, in their calculus, the risk is too great. Starting around 1950, this model was adopted not only by several underdeveloped countries in Asia and Latin America seeking to industrialize, but also by Germany and Japan, which were seeking to reconstruct their economies. India was a pioneer in establishing DFIs, its equivalent of development banks elsewhere, to kick-start industrialization.

Q1. What is meant by the statement “It is not audible yet” as used in the passage?

(a) The regulatory policies formulated to evade the situation of financial stress in banking system are not feasible to implement.
(b) Banks are under financial stress which is difficult to overcome.
(c) The scams and scandals in the banking system are still unknown to everyone.
(d) The adversities facing by banking system have not been yet taken into consideration by the regulatory body.
(e) The crises in the banking system are due to weak regulation and governance.

Q2. How we can deduce the fact that “privatization is no solution”?

(a) As private sector banks have larger proportion of NPA as compared to public sector banks.
(b) As both public sector and private sector banks are undergoing the rising problem of non- performing assets.
(c) As both public and private sector banks are not capable of resolving their issues.
(d) Both (b) and (c)
(e) All are correct

Q3. According to the passage, How can the problem of Bad Loan in Banking system be avoided?

(I) Banks should mortgage necessary assets of the borrower to avoid the loss.
(II) Asset Quality must be reviewed by RBI strictly and carefully.
(III) Bank managers should have the ability to assess the risks before lending.

(a) Only (I)
(b) Only (III)
(c) Both (II) and (III)
(d) Both (I) and (III)
(e) All are correct

Q4. How did India plan to start industralisation at faster pace?

(a) by infusing large capital in the banking system
(b) by imposing high interest rate on borrowed sum of money.
(c) by reducing the lending rate to new firms as it is risky.
(d) by investing through development banks.
(e) All are correct

Q5. What is/ are the problem(s) related to commercial borrowings?

(I) maturity mismatch
(II) Not capable to assess credit risk on long term investment lending
(III) corrupt and inept lending

(a) Only (I)
(b) Only (II)
(c) Both (II) and (III)
(d) Both (I) and (III)
(e) All are correct

Directions (6-10): Answer the following questions after rearranging the following sentences into a coherent paragraph and identify the sentence that doesn’t fit into the context of the paragraph.

(A) India can’t ignore the environmental consequences of its rapid growth. Over the last few decades, water-intensive and polluting industries such as textiles, leather, sugar and paper have shifted from developed to developing countries.
(B) They withdraw huge quantities of water and discharge effluents without adequate treatment. Before 1980, countries like the U.K. and the U.S. played a vital role in textile production and export.
(C) Supporters of EKC believe that countries need to reach a particular average income level before they can afford to allocate the resources needed to protect the environment.
(D) India is on the upward part of the environmental Kuznets curve (EKC). For achieving sustainable development, it must move to the next stage. However, it is not wise to wait for that stage.
(E) One of the factors attributed to this shift is that there are relatively less stringent environmental policies in developing nations. Countries like India are now manufacturing products which contribute to pollution for domestic and international markets.
(F) But by 2000, their dominance had substantially reduced and the share of developing countries like India and China had increased.[/su_spoiler]

Q6. Considering statement (D) “India is on the upward part of the environmental Kuznets curve (EKC). For achieving sustainable development, it must move to the second stage. However, it is not wise to wait for that stage” as the first sentence of the rearranged paragraph, then which among the following fails to become the part of coherent paragraph?
(a) C
(b) F
(c) E
(d) B
(e) A

Q7. Considering statement (D) “India is on the upward part of the environmental Kuznets curve (EKC). For achieving sustainable development, it must move to the second stage. However, it is not wise to wait for that stage” as the first sentence of the rearranged paragraph, then which one among the following can consecutively follow the last statement after the rearrangement (excluding the incoherent one)?
(a) India’s developmental activities are affecting the environment to a considerable extent, through over-exploitation of natural resources and indiscriminate discharge of waste.
(b) However, experiences from the U.S. and Europe reveal that pollution mitigation can yield large gains to human health and the economy.
(c) Pollution is not a disease, it is only a symptom. Hence, its root cause should be investigated.
(d) Hence, pollution leads to the real and potential loss of the overall development opportunity in an economy.
(e) None of these

Q8. Among the following pairs which one of them is formed with two consecutive statements after the rearrangement?
(a) A – E
(b) C – E
(c) B – F
(d) A – F
(e) B – C

Q9. Which one among the following sentences can interlink the first and the second sentence of the rearranged paragraph?
(a) For instance, in developing countries, water pollution has not been a major topic of political debate, but political instruments including Environmental Quality Objectives and Uniform Standards are in the political agendas of Western countries.
(b) In developing countries like India, pollution is increasing beyond the carrying capacity of the environment.
(c) The government has largely failed to make people aware of how the pollution affects them, what the main pollutants are, what precautions they should take, the types of masks they should wear, and suchlike.
(d) Wastewater in large cities is let out untreated and flows to large water bodies, where it remains, contaminating surface water.
(e) None of these

Q10. Considering statement (D) “India is on the upward part of the environmental Kuznets curve (EKC). For achieving sustainable development, it must move to the second stage. However, it is not wise to wait for that stage” as the first sentence of the rearranged paragraph, identify the correct sequence of the sentences to form a coherent paragraph (excluding the incoherent one).
(a) DCBFE
(b) DAEFB
(c) DFEAB
(d) DABFE
(e) DCBEA

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