LIC AAO Pre English Language Quiz
English Language is a part of almost all major competitive exams in the country and is perhaps the most scoring section also. Aspirants who regularly practice questions have a good chance of scoring well in the English Language Section. So here we are providing you with the LIC AAO Pre English Language Quiz to help you prepare better. This LIC AAO Pre English Language Quiz includes all of the most recent pattern-based questions, as well as Previous Year Questions. This LIC AAO Pre English Language Quiz is available to you at no cost. Candidates will be provided with a detailed explanation of each question in this LIC AAO Pre English Language Quiz. Candidates must practice this LIC AAO Pre English Language Quiz to achieve a good score in the English Language Section.
Directions (1-5): Read the passage carefully and answer the questions given below it. Certain words/ phrases have been given in bold to help you locate them while answering some of the questions.
Paragraph 1: The PNB fraud has rekindled the debate on bank privatization, often considered a solution for the poor management in public sector banks. While government ownership of businesses is a bad idea and leads to poor economic outcomes, we should not pin all hopes on privatization as a solution. It is not a panacea for the ills of the banking sector unless accompanied by reforms in banking regulation. The Reserve Bank of India (RBI) has often cited government ownership as an explanation for management failures in PSU banks. There are incentive conflicts when government owns banks, and this affects the efficiency of capital allocation. However, this does not explain why the RBI cannot hold the PSU banks accountable for issues such as capital adequacy, fraud control or appropriate reporting of financial statements.
Paragraph 2: It is true that the RBI does not have all the powers over PSU banks that it has over private sector banks, such as the power to revoke a banking license, merge a bank, shut down a bank, or penalize the board of directors. However, Section 51 of the Banking Regulation Act, 1949 enables the RBI to exercise some powers over PSU banks, which apply notwithstanding any special provision governing PSU banks in other laws. The lack of some powers of RBI over PSU banks is balanced, to some extent, by the right of RBI to appoint a director on the board of a PSU bank (bank nationalization laws and the law governing State Bank of India). Unlike private sector banks, this director must have expertise and experience in regulation and supervision of banks, a skill available only with RBI. This allows the RBI to keep a PSU bank under constant supervision.
Paragraph 3: Banks can earn more fees and make higher profits by selling financial products with high commissions, as opposed to the appropriate financial products, to consumers. If the management of a private sector bank is incentivized to increase income, they will try to sell insurance products (which may carry commissions equalling the entire premium for one year) rather than fixed deposits. The objective of banking regulation is to make the management of banks, both private and public, take decisions which they would not normally take to protect depositors and consumers. Since the incentive structures of the management of private and public sector banks are different, they will take different types of decisions. But in both cases, the decisions may adversely affect the consumers and the depositors.
Paragraph 4: Privatization of banks, with the same level of regulatory capacity and the same quality of regulatory oversight, may only trade one type of banking management failure (frauds, poor system controls) with other types of failures (underreporting of NPAs, misselling of financial products). There is no evidence that the RBI is better at regulating private sector banks and no reason to believe that bank privatization will cure the ills of banking regulation.
Paragraph 5: Doing the right thing for the wrong reasons is dangerous. If bank privatization is the only reform that is undertaken in response to the current crisis in the banking system without fixing fundamental problems in banking regulation, the crisis will keep recurring. This will then delegitimise the privatization move. The consequent backlash may undo many good reforms which have reduced the role of state in commerce and redirected it towards public goods like regulation.
- Which of the following does not hold true in the context of the paragraph 1?
(a) RBI held government responsible for the management failure in PSU banks.
(b) Privatisation cannot be the solution of failures unless accompanied by reforms.
(c) RBI need to look after other issues as well like capital adequacy, fraud control.
(d) Under Government ownership, capital allocation is the major issue in the PSU banks.
(e) The RBI stake in PSU banks is larger than that of the government.
- According to the Paragraph 2, In what way (s) does RBI can evade the situation of fraud in PSU banks?
(a) RBI, being a board member, can keep a check on all the activities of the PSU banks.
(b) RBI can abrogate the license of banks which are engaged in fraudulent activities.
(c) RBI can recruit an experienced and specialized director of a PSU bank.
(d) Both (a) and (c)
(e) All are correct
- What is/are the right way (s) of generating profit for the bank?
(I) By taking decisions to protect the depositors and consumers.
(II) By proper executing the banking regulation.
(III) By increasing saving accounts.
(a) Only (I)
(b) Only (II)
(c) Both (II) and (III)
(d) Both (I) and (III)
(e) All are correct
- Which of the following can be inferred from paragraph 5 which forms a connection with paragraph 4?
(a) The RBI can control the lending policy of PSU banks, including determining maximum exposure, and the purpose of lending.
(b) non-performing assets and misspelling of financial products are difficult to control by privatization.
(c) Privatization may solve other problems in the economy but it is not a solution for regulatory weaknesses.
(d) RBI is not good at regulating private sector banks.
(e) None of these
- How is it correct to say that Privatisation of PSU banks cannot resolve the issue completely?
(a) Regulation of Private sector banks also needs improvement.
(b) Privatising the banks has its limited benefits.
(c) Unless fundamental problems of banks are resolved, Privatisation will not fix the issue.
(d) Deep Reforms are needed to be implemented too.
(e) All of the above
Directions (6-10): In each of the questions given below two sentences are given. Both the sentences have a blank which must be filled by the one of the options following the two sentences. The correct choice must fill both the blanks.
- (I) My genetic makeup is as ___________ as that of my homeland.
(II) The Increased choices have _____________ the matters for the consumer.
(a) restrained
(b) complicated
(c) asserted
(d) liberated
(e) reserved
- (I) God, acting as a good king and a true father, has given us a will which cannot be ___________, compelled or thwarted.
(II) __________ public expenditure is required in order to avoid any tax evasion.
(a) dispensed
(b) trained
(c) surged
(d) imposed
(e) restrained
- (I) Mr Charles Green was commissioned to ________ the astronomical observations, and Sir Joseph Banks and Dr Solander were appointed botanists to the expedition.
(II) I am proud to say that I made it completely through school without receiving a censure for my ________________!
(a) impact
(b) progress
(c) conduct
(d) insult
(e) offer
- (I) Be sure to ______ authorship of the posting to the posting party.
(II) Not even intelligence can be a/an ________ of the divine Being.
(a) conflict
(b) attribute
(c) grant
(d) impel
(e) visit
- (I) The only reason she could think of was that the man didn’t want anyone to ___________ him.
(II) “If you’re as smart as I _________, you’ve probably used your gift to figure out where I am,” he said.
(a) suspect
(b) insist
(c) create
(d) defend
(e) refute
