SBI Clerk Pre-English Language Quiz – 17

SBI Clerk Pre-English Language Quiz – 17

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 SBI Clerk Pre-English Language Quiz to help you prepare better. This SBI Clerk Pre-English Language Quiz includes all of the most recent pattern-based questions, as well as Previous Year Questions. This SBI Clerk Pre-English Language Quiz is available to you at no cost. Candidates will be provided with a detailed explanation of each question in this IBPS PO Pre English Language Quiz. Candidates must practice this SBI Clerk Pre-English Language Quiz to achieve a good score in the English Language Section.

Directions (1-8): Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions.

Karl Marx could have been writing about the bad loan problem in India when he said “Men make their own history, but they do not make it as they please… but under circumstances existing already, given and transmitted from the past. The tradition of all dead generations weighs like a nightmare on the brains of the living.” Today, every Indian banker recognises that the bad loans (NPAs) created by previous generations weigh like a nightmare on the brains of the living!

The NPA problem is urgent and grows every day. The conflict between the political narrative (the government cannot bail out the rich industrialists) and economic necessity (the need for a haircut by banks and the fact that interest compounding itself would have added 80 per cent to the corpus of bad loans in the last four years) makes choices hard and the way forward complicated. A lack of resolution continues to slow the GDP growth rate and is reflected in the insipid IIP numbers. It needs courageous attention.

But there are six other substantive areas that need attention and which may be easier to move on.

One, financing micro enterprises. There are about 50 million MSMEs contributing to about 38 per cent of India’s GDP, 40 per cent of national exports, 45 per cent of manufacturing output and 20 per cent of employment. Of these, 45 million are unregistered micro enterprises that have almost no access to formal credit. Digitisation (ubiquitous connectivity, unlimited data storage, advanced analytics, savage computing power, artificial intelligence, robotics and smart handheld devices) can change the paradigm here. For example, with Aadhaar, a purposeful push in CIBIL, data availability post-GST and advanced analytics, this space is ripe for massive innovation.

The new paradigm can fundamentally change the attractiveness of making low ticket-size loans profitable and challenge the hegemony of money lenders in this segment. Micro enterprises need to be pushed to register and become a part of the credit bureau to facilitate this change. Formal credit will make their businesses more stable.

Two, old private sector banks (OPSB). We have 13 OPSBs with 4 per cent share of banking assets. Compare this with the 14 new private sector banks, none older than 22 years, with 21 per cent share of assets. Federal bank, the biggest OPSB, has half the asset size of Kotak Mahindra Bank and only 15 per cent of HDFC Bank. KMB started 15 years ago while Federal Bank has an 85 year-old history. Imagine the positive impact on the sector if these 13 OPSBs operated at the same level of efficiency as the new private sector banks. To be fair to the RBI, the first steps of change are evident in the recent sale of the Catholic Syrian bank to Fairfax or in the transformation underway in RBL with a new management. Instead of daily media speculation about mergers amongst new private sector banks, there should be a plan to facilitate the takeover of OPSBs by new private sector banks, or to encourage private equity firms to take majority ownership to change the ambition and management of these banks. Their transformation will greatly aid the modernisation of Indian banking.

Three, non-bank finance companies (NBFC). The sluggishness and constraints of public sector banks provide a space for the NBFCs to operate in India. Due to the modest capital requirements of just Rs 2 crore to start an NBFC, there are 12,000 registered NBFCs in India. Yet, the top 25 account for about 80 per cent of total NBFC assets. While getting bank licences in India is very difficult, starting an NBFC is very easy. Yet such proliferation is risky. I would urge the RBI to offer more bank licences and tighten the NBFC regime. The RBI should raise minimum capital requirements of the NBFCs to, say, Rs 100 crore and impose some listing requirement for the NBFC or its holding company within three to five years. Bigger NBFCs will be able to reach unserved segments better and will also be more robust.

Four, public sector banks. Over the past 10 years, I have commented on public sector bank reform. We all know the problems and the potential solutions. There is a need to change the concept of government ownership away from 51 per cent to becoming the single largest owner, as was even recommended in the Narasimham Committee report. This will address the triple issues of governance reform, HR reform and capital constraints. We could debate the method by which we achieve this goal but it is necessary. However, to start with, we could take the modest step of corporatising these banks and bringing them under the Companies Act.

Five, cooperative banks. The entire cooperative bank experiment needs a relook. So far, they have not made a meaningful dent on financial exclusion. In fact, the JAM (Jan Dhan accounts, Aadhaar, mobile phones) push by the current government has done more for financial inclusion than 70 years of cooperative banking. The problems of cooperative banks are well understood but reform is hampered by politics and the consequent dual regulation. They lag in technology, skills and have a tough time raising capital from members. We need to push the JAM trinity and relook at the need for the cooperative bank sector.

Six, payments banks. The RBI created two new bank categories — small banks and payments bank. In my view, the history of small banks in India is a history of failure. Payments banks, however, are an interesting innovation but, in their current form, they are an unviable business proposition. They are allowed to only accept deposits of Rs 1 lakh or less and invest these in government securities and make money by participating in the payments business. To make them viable, the RBI should consider allowing them to make loans of up to Rs 1 lakh. They can then also address the gap in funding to micro enterprises, currently dependent on the traditional money lenders.

A final pet peeve of mine is the National Housing Bank (NHB). It serves no clear purpose. The NHB should be merged with the RBI, like the FMC was merged with SEBI. If we can move on the areas of reform highlighted in this piece, our banking sector will become more modern, competitive, inclusive, digital and robust. It could enable the Prime Minister’s slogan of “sabka saath, sabka vikas” by making the provision of finance easier for all Indians.

  1. Which among the followings is the most appropriate title of the given passage?

(a) The Narasimhan committee report
(b) Road to Bankability
(c) Strengthening  of Indian banking sector
(d) Modernisation of Indian banking
(e) The NPA problem

Answer & Explanation
Ans. b

Exp. The title “Road to Bankability” is the most appropriate title as the author mentions here the important areas to pay attention on the current Banking system that will make GDP grow. Hence this title is more potent than others.

  1. According to the passage, what makes the GDP continue to slow down?

(a) The increase in corruption in the banking sector.
(b) The lack of decision making and growing Non performing asset.
(c) Not paying attention towards the small farming sector.
(d) Shortage of funds to small enterprises due to merging of various banks.
(e) All of the above.

Answer & Explanation
Ans. b

Exp.  Refer to the second paragraph, “The NPA problem is urgent and grows every day…” Hence (b) is the correct choice in context of the passage.

  1. How the new private sector banks can contribute to modernization of Indian banking system?

(i) By financing the old private sector banks
(ii) By taking over the old private sector banks
(iii)By encouraging old private sector banks to finance the micro enterprises

(a) only (i) is correct
(b) only (ii) is correct
(c) Both (i) and (ii) are correct
(d) Both (ii) and (iii) are correct
(e) All are correct.

Answer & Explanation
Ans. b

Exp. Refer to the last few lines of the fifth paragraph, “there should be a plan to facilitate the takeover of OPSBs by new private sector banks”. Hence only statement (ii) is correct in context of the passage.

  1. Which of the following is false in context of the passage?

(a) Government should be the single largest owner of the public sector banks.
(b) Micro Enterprises need to be encouraged to register and become part of credit bureau.
(c) National Housing Bank serves no clear purpose so it should be merged with RBI.
(d) Digitisation can help to modernize the banking system.
(e) All are true

Answer & Explanation
Ans. e

Exp. All the given sentences are true in context of the passage.

  1. What is the tone of the author in the above passage?

(a) Laudatory
(b) Nostalgic
(c) Sarcastic
(d) Didactic
(e) Satirical

Answer & Explanation
Ans. d

Exp. The author provided the ways on modernizing the banking system and with his writing he is teaching us the changes that need to be implemented.

  1. According to the author, what measures need to be taken by RBI for operating NBFC in India?

(i)  Raising minimum capital requirement
(ii) Allowing NBFC to make loans
(iii) restricting the number of NBFC in India

(a) Only (i) is correct
(b) Only (ii) is correct

(c) Both (i) and (ii) are correct
(d) Both (ii) and (iii) are correct
(e) All are correct.

Answer & Explanation
Ans. a

Exp.  Refer to the last lines of sixth paragraph. “The RBI should raise minimum capital requirements of the NBFCs to, say, Rs 100 crore and impose some listing requirement for the NBFC”.

Directions (7-8):  Choose the word/group of words which is most similar in meaning to the word/group of words printed in bold as used in the passage.

  1. Insipid

(a) feeble
(b) risible
(c) inane
(d) innocuous
(e) exhilarating

Answer & Explanation
Ans. d

Exp. Insipid means lacking flavor, weak or tasteless. Hence it has same meaning as innocuous.

Risible means absurd.

Inane means lacking sense.

  1. Paradigm

(a) preconceived
(b) exemplar
(c) ingenuous
(d) Brusque
(e) cagey

Answer & Explanation
Ans. b

Exp. Paradigm means a typical example or pattern of something. Hence it has same meaning as exemplar.

Preconceived means predetermined.

Brusque means blunt.

Cagey means secretive.

Directions (9-10): In each of the following sentence there are three blank spaces. Below each sentence there are five options and each option consists of three words which can be filled up in the blanks in the sentence to make the sentence grammatically and coherently correct.

  1. Twenty years ______________, when I moved from India to Singapore with my husband, I found myself _________________ at the many reminders of home after the _______________ strangeness of being in a foreign city settled down.

(a)since, wondered, subordinate

(b)gone, surprised, final

(c)back, pondering, followed

(d)ago, marveling, initial

(e)following, puzzled, open

Answer & Explanation
Ans. d

Exp. “ago, marveling, initial” is the correct set of words that fits perfectly into the provided blanks giving a logical meaning to the sentence. Other set of words are not that appropriate to provide the proper and grammatically correct meaning to the sentence. Hence option (d) is the correct choice.

Marvel means be filled with wonder or astonishment.

Initial means existing or occurring at the beginning.

Ponder means think about (something) carefully, especially before making a decision or reaching a conclusion.

Subordinate means of less or secondary importance.

 

  1. India should ______________ efforts to _____________ China through diplomatic means and by following a give-and-take _______________ in its relationship.

 

(a)induct, pursue, assumptions

(b)invest, rush, effect

(c)set up, repulse, authority

(d)cease, attract, rules

(e)initiate, woo, principle

Answer & Explanation
Ans. e

Exp. “initiate, woo, principle” is the correct set of words that fits perfectly into the provided blanks generating a contextual meaning to the sentence. Other set of words are inappropriate in terms of adding proper meaning to the sentence. Some of them also lack the correct grammar agreement with the sentence. Hence option (e) is the correct choice.

Initiate means cause (a process or action) to begin.

Woo means seek the favour, support, or custom of.

Induct means admit (someone) formally to a post or organization.

Pursue means follow or chase (someone or something).

Set-up means a scheme or trick intended to incriminate or deceive someone.

Repulse means reject or rebuff (an approach or offer or the person making it).

Cease means come or bring to an end.

 

 

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