SBI PO Prelims 2022: English Language Quiz 6

SBI PO 2022: English Language Quiz

The English language part of competitive exams is the most significant. English language is a difficult subject as it takes time and can go wrong if the candidate does not prepare well. In this article, we have come up with the SBI PO 2022 English Language Quiz to enhance your preparation. A detailed explanation of each will be provided in this SBI PO 2022 English Language Quiz. All types of Questions for prelims and mains are included in this SBI PO 2022 English Language Quiz. This SBI PO 2022 English Language Quiz is completely FREE.

 

Direction (1-7): 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.

 

Paragraph 1: Nirav Modi case has once again opened a chasm between the finance ministry and the Indian central bank. Reserve Bank of India (RBI) governor Urjit Patel said in a powerful speech last week that various legal constraints make it difficult for the banking regulator to discipline banks that are owned by the government. Public sector lenders account for three-fourths of the Indian banking system, far more than in any other market economy. This is not the first call for banking regulation that is ownership-neutral. A similar point was made by the Financial Sector Legislative Reforms Commission as well as by former governor Raghuram Rajan in a speech in August 2016. There is no doubt that all banks should be governed by the Companies Act and the Banking Regulation Act, rather than specific acts of Parliament such as the State Bank of India Act of 1955 and the two Acts that nationalized banks in 1969 and 1979.

 

Paragraph 2: Finance ministry officials have hit back by saying that the RBI has enough powers over public sector banks, while it is the government that has limited oversight on operations. However, what Patel has said deserves closer attention, rather than looking at his speech as one side of a blame game being played out by the two masters of our financial universe. No regulator can evade the responsibility of not catching a fraud of this size but it is also incorrect to say that the scam at Punjab National Bank is only about lax supervision. It is now quite clear that the lender had not followed the instructions sent by the RBI to banks in 2016. The argument that Nirav Modi could milk the banking system only because the regulator was not alert could lead to calls for even more intrusive supervision by the RBI, leading to the risks of regulatory overkill. There are already early demands for what could end up being excessive intrusion.

 

Paragraph 3: Most of the public debate in India over the past two weeks has naturally focussed on the role of supervision and regulation by the RBI. The role of regulation should be seen in tandem with three other deep problems: perverse incentives for bankers, internal controls and corporate governance. Each of these were also highlighted in the aftermath of the 2008 financial crisis that began with the collapse of Lehman Brothers. First, the perverse incentives at the heart of Indian banking are as follows. Bankers are often under pressure from the government to pump up lending volumes, there is little downside when the loans turn bad since the taxpayer foots the bill. Success is judged by loan origination rather than the quality of the portfolio. Second, the internal controls inside bank branches are weak, and recent global experience shows that many banking frauds take place in the grey areas where databases as well as regulatory regimes overlap. For example, the problem at Punjab National Bank went undetected for so long because the SWIFT messaging system was not linked to the core banking software, precisely the sort of grey area where fraud becomes more possible. The corporate governance problem is that bank boards are passive. Improved corporate governance was a key element of the Indradhanush plan for banking reform that was announced with so much fanfare in 2015. The Bank Boards Bureau that was expected to lead the change on the corporate governance front has been a failure.

 

Paragraph 4: The upshot: RBI cannot wash its hands of what has happened, but the optimal response should not be calls for a heavier hand of regulation or footloose investigations that scare other bankers from even honest lending. Instead, there should be a harder look at the perverse incentives that lie at the heart of the Indian banking system, the lack of data analytics to detect outlier lending activity, the risks of credit bubbles in a banking system dominated by the government, and the overall institutional framework of the Indian financial system.

Finally, too many people accused Patel of lacking independence after the demonetisation episode. He has since spoken out against attempts to interfere with the working of the monetary policy committee, held interest rates despite the pressure to cut them, warned about the fiscal risks from farm loan waivers, and spoken about the excessive taxation of capital incomes. The RBI governor has in the past few months proved that he is his own man. The working relationship between New Delhi and Mumbai has been smoother in the recent past compared to what happened over the past decade. However, the recent spat could be the first salvo in a longer battle unless finance minister Arun Jaitley and Patel move quickly to prevent any further tensions.

 

 

  1. What issue has been raised by the governor of India’s central Bank RBI?

(a) Aggravating lending rate of banks.
(b) Banks are not taking into consideration the specialized people for specialized tasks of banks.
(c) Banks are not registered under the companies Act and Banking regulation Act.
(d) Banking regulation being regulated by two regulators.
(e) Under supervision of banks.

Answer & Explanation
Ans. d

Exp. As mentioned in the speech of RBI governor Urjit Patel’s speech “various legal constraints make it difficult for the banking regulator to discipline banks that are owned by the government.” From which we can conclude that banking regulation is not just regulated and operated by RBI but government too. Hence option (d) is the correct choice.

  1. What is the cause of fraudulent activities happening in public sector banks?

(a) Lack of reforms made for overcoming the loss.
(b) Negligence in management and operation.
(c) Not following the guidelines as directed by RBI.
(d) Both (b) and (c)
(e) All

Answer & Explanation
Ans. d

Exp. As mentioned in the second paragraph that scam happened in PNB is about lax supervision and not following the instructions of RBI. From these statements, we can infer that sentences (b) and (c) are correct.

  1. What are the areas which needs attention for evading the loss in banks?

(I) The RBI should recruit and appoint the specialized person for a specialized tasks.
(II) Deep reforms are needed to be implemented actively by the Bank Board Bureau.
(III) Bankers should not be pressurized to increase the lending rate.

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

Answer & Explanation
Ans. d

Exp. Refer the third paragraph of the passage.

  1. What upshot has been discussed in the paragraph 4?

(a) RBI should make immediate steps for proper regulation and investigation of the PSUs.
(b) RBI making necessary investigation of public sector banks leads to prevention of bad debt issue.
(c) The failure of the banking reforms by bank board bureau cannot be neglected and immediate steps should be taken by RBI in order to overcome the loss.
(d) The strict regulations of RBI in response to the failure of governance will not work in order to overcome the situation.
(e) The RBI is made responsible for the failure of the corporate governance.

Answer & Explanation
Ans. d

Exp. In reference to the paragraph 4, the upshot or consequence in response to the failure of governance by Bank Board Bureau, the strict regulations of RBI restrict the other bankers from lending. Hence option (d) is correct.

  1. What is the reason behind ‘Urjit patel’ being called as “he is his own man”, by the author?

(I) He accused the plans and policies made by the government.
(II) He made himself responsible for the failure of the governance in the public sector banks.
(III) He spoke about making his own decisions, despite being accused by people, regardless of finance ministry.

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

Answer & Explanation
Ans. b

Exp. Refer the fourth paragraph of the passage “He has since spoken out against attempts to interfere with the working of the monetary policy committee, held interest rates despite the pressure to cut them, warned about the fiscal risks from farm loan waivers, and spoken about the excessive taxation of capital incomes. The RBI governor has in the past few months proved that he is his own man.”

  1. What is the tone of the author in context to the passage?

 

(a) Narrative
(b) Analytical
(c) Didactic
(d) Sarcastic

(e) Restrictive

Answer & Explanation
Ans. b

Exp. The author’s tone is Analytical as the author has elucidated the speech of Urijit Patel showing the limits of regulation and areas needed to be improved.

  1. Which of the following alternatives among the five options provides the most similar meaning(s) of the word given in BOLD as used in the passage?

Outlier

(A) oddity
(B) anomaly
(C) aberration
(D) irregular

(a) Only (A)
(b) Only (B)
(c) Both (B) and (C)
(d) Both (C) and (D)
(e) All of the above

Answer & Explanation
Ans. e

Exp. Outlier means something that deviates from what is standard, normal, or expected. Hence all the options are correct.

 

Directions (8-10): Read each sentence to find out whether there is any grammatical or idiomatic error in it. The error, if any, will be in one part of the sentence. The alphabet corresponding to that part is your answer. If there is ‘No error’, the answer is (e). (Ignore errors of punctuation, if any.)

  1. The President conveyed (A)/the importance at reducing (B)/tensions between India and Pakistan(C)/ and maintaining peace in the region (D)/ No error

(a) D

(b) A

(c) B

(d) C

(e) No Error

Answer & Explanation
Ans. c

Exp. The error lies in part (B) of the given sentence. The use of ‘at’ here is incorrect because ‘at’ is used to indicate a place, to refer a time, to indicate one’s activity. Instead it should be ‘of’ which is used to indicate relating to, belonging to, to indicate reference, to specify the number or an amount. Hence, the correct answer choice would be option (c)

 

  1. Any decision to challenge (A)/the final National Register of Citizens (B)/through the legislative route (C)/ could be discuss in future(D)/ No error.

(a) D

(b) A

(c) B

(d) C

(e) No Error

Answer & Explanation
Ans. a

Exp. The error lies in part (D) of the given sentence. Use of ‘discuss’ here is incorrect instead it should be ‘discussed’ because the sentence is in passive voice and in passive voice is used in the form of  ‘ be + V3. Hence, the correct answer choice would be option (a).

 

  1. The Supreme Court has,(A)/in the past fortnight, (B)/ twice rejected the State’s and (C)/ the Home Ministry’s plea for re-verification (D)/ No error

(a) D

(b) A

(c) B

(d) C

(e) No Error

Answer & Explanation
Ans. e

Exp. There is no error in the given sentence. Hence, the correct answer choice would be option (e)

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