SBI PO Prelims 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 SBI PO Prelims Reasoning Ability Quiz to help you prepare better. This SBI PO Prelims English Language Quiz includes all of the most recent pattern- based questions, as well as Previous Year Questions. This SBI PO Prelims English Language Quiz is available to you at no cost. Candidates will be provided with a detailed explanation of each question in this SBI PO Prelims English Language Quiz. Candidates must practice this SBI PO Prelims English Language Quiz to achieve a good score in the English Language Section.
Directions (1-5): In each of the questions given below a sentence is given with one blank. Below each sentence FOUR words are given out of which two can fit the sentence. Five options are given with various combinations of these words. You have to choose the combination with the correct set of words which can fit in the given sentence.
- An amazing transformation has _________ in the course of a generation.
- The Insolvency and _________ Code has now been in force for more than a year and given its ambitious objectives and impact.
- Investments in public infrastructure is a key _________ of economic growth strategy among emerging economies.
- Improvements can also come from changes in other ______________ environmental or policy factors.
- The reason __________ the lack of research is that infrastructure is not placed randomly across regions.
Directions (6-10): 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.
Recent events — the UP government’s waiver of farmer loans, dramatic protests by Tamil Nadu farmers in Delhi and a warning from the RBI Governor against loan waivers — have once again brought farm loan write-offs under public glare.
Farm loans may be crop loans or investment loans taken to buy equipment. Both farmers and banks reap a good harvest when all is well. But when there is a poor monsoon or natural calamity, farmers may be unable to repay loans. The rural distress in such situations often prompts States or the Centre to offer relief — reduction or complete waiver of loans. Essentially, the Centre or States take over the liability of farmers and repay the banks. Waivers are usually selective — only certain loan types, categories of farmers or loan sources may qualify.
Agriculture in India has been facing many issues — fragmented land holding, depleting water table levels, deteriorating soil quality, rising input costs, low productivity. Add to this vagaries of the monsoon. Output prices may not be remunerative. Farmers are often forced to borrow to manage expenses. Also, many small farmers not eligible for bank credit borrow at exorbitant interest rates from private sources. When nature rides roughshod over debt-ridden farmers in the form of erratic monsoon and crop failures, they face grim options. Indebtedness is a key reason for the many farmer suicides in the country.
Loan waivers provide some relief to farmers in such situations, but there are debates about the long-term effectiveness of the measure. Critics demand making agriculture sustainable by reducing inefficiencies, increasing income, reducing costs and providing protection through insurance schemes. They point out that farm loan waivers are at best a temporary solution and entail a moral hazard — even those who can afford to pay may not, in the expectation of a waiver. Such measures can erode credit discipline and may make banks wary of lending to farmers in the future. It also makes a sharp dent in the finances of the government that finances the write-off. A blanket waiver scheme is detrimental to the development of credit markets. Repeated debt-waiver programmes distort households’ incentive structures, away from productive investments and towards unproductive consumption and wilful defaults. These wilful defaults, in turn, are likely to disrupt the functioning of the entire credit system.
The real crisis for Indian farmer is that he or she is not in control of the produce, unlike other businesses, and is dependent on cartel of traders to fetch a decent price. The cartel makes money in case of good or bad crop season as their margins remain intact. In fact, in case of a crop failure the trader profit margin rises whereas the farmer is in distress without remunerative price. The governments – Centre and states – have repeatedly failed to break the cartelisation and their effort to create farm infrastructure through cold stores has helped the corporate sector more than the farmers. Except some farmers in Maharashtra and Punjab, most of the cold stores built with help of the government subsidy are owned by corporates. So, now these corporates are buying produce in farms at cheap rates, keep them in cold stores, repackage them and sell them in malls in cities at thrice the purchase price. Neither the farmer gains nor the consumer.
To be sure, the agriculture sector needs government support but loan waivers are not the solution. On the contrary, expenditure on loan waivers will eventually leave less fiscal space for public expenditure in agriculture. India needs massive investment in areas such as irrigation, water conservation, better storage facilities, market connectivity and agricultural research. The problems in Indian agriculture are structural. They need long-term solutions. Loan waivers will only end up complicating the problem. The Indian economy has suffered a lot due to competitive populism in the past. It’s time parties and governments address the real issues.
- According to the passage, why there is a need of waiving the loans of the farmers?
(a) So that agricultural sector and economy do not get affected.
(b) Incapability of farmers to repay the loans due to natural disasters.
(c) As Private firms pressurize to repay the loans.
(d) To meet the long term solutions of farmers.
(e) All of the above.
- What are the disadvantages related to the loan waiver scheme?
(a) It can abrade credit regulation and may make banks wary of lending to farmers in the future.
(b) It leads to less involvement of farmers for credit benefit from banks in the future.
(c) The loan waiver scheme perverts the households’ incentive structure and leads to unproductive consumption.
(d) Both (a) and (c) are correct.
(e) All are true.
- According to the passage, what needs to be done in order to resolve the issue?
(i) Banks should lend the appropriate amount of credit to farmers.
(ii) There should be Long term solutions of structural problems of agriculture.
(iii) Investment in areas like irrigation, water conservation, better storage facilities, etc.
(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
- Which is the most appropriate title of the passage?
(a) Need for farm loan write-offs.
(b) The hazards of farm loan waivers.
(c) The real crises of Indian farmers.
(d) A Blanket waiver scheme.
(e) A Dramatic protests by Tamil Nadu farmers.
- Which of the following statements is false in context of the passage?
(a) For the rural distress, The Centre or States take over the culpability of farmers and repay the banks.
(b) To regulate the expenses, farmers are forced to borrow.
(c) A blanket waiver scheme is detrimental to the development of credit markets.
(d) Loan Waivers will end up simplifying the problem of farmers and economy.
(e) All are correct.
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