SBI PO Prelims- English Miscellaneous Quiz: 5th June

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English Quiz For SBI PO Exam 2019

The SBI PO Prelims Exam is scheduled to be held in a few days and to ace your preparations Bankersadda is launching a crash course of 18 days to help you excel the exams. Here is a quiz on English Language being provided by Adda247 for free to let you practice the best of latest pattern English Questions for SBI PO Examination 2019-20. Video Solutions will also be provided for the same for free.




Directions (1-10): 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.

Almost a decade after the global financial crisis, economists continue to debate what went wrong, and how the world can avoid another blowout. One concern right now is that years of excessively easy monetary policy have resulted in higher leverage. The corporate credit-to-gross domestic product ratio in both advanced and emerging market economies is at near-historic highs. From the financial stability perspective, what matters is not just the total amount of credit in an economy but also the quality of the firms that are getting funded. It is in this context that the work in an analytical chapter of the latest “Global Financial Stability Report” (GFSR) of the International Monetary Fund (IMF) could be useful.
The GFSR fills the gap in assessing the riskiness of credit flow at the cross-country level, and has mapped firm vulnerability indicators for 55 economies since 1991. The IMF notes: “Taking the riskiness of credit allocation into account helps better predict full-blown banking crises, financial sector stress, and downside risks to growth at horizons up to three years.” The riskiness of corporate credit is determined by the extent to which risky firms get credit compared to less risky firms.
Over the last 25 years, the riskiness of credit allocation has followed a cyclical pattern. It bounced back from post-financial crisis lows and was marginally below the historical average in 2016. This will now be an important indicator, as a significant upward move could threaten financial stability. The riskiness of credit allocation also varies across economies. For instance, during 2014-16, it came down in the US but remained at a relatively higher level in Japan. It will be important for the IMF to work with global policymakers to avoid possible threats to global financial stability, as the impact of a financial crisis in large economies does not remain limited to their shores. India also followed the global pattern but the riskiness of credit allocation was at a relatively lower level in 2016. A lower allocation to risky firms in recent years can perhaps partly be explained by the ongoing twin balance sheet problem. The IMF has used common financial ratios such as the interest coverage ratio and debt-to-profit ratio to assess the vulnerability of firms.

India has made progress on some of these indicators in the recent past, but more needs to be done. For instance, the Reserve Bank of India’s (RBI’s) new framework for the resolution of stressed assets makes it mandatory to report non-performing accounts above Rs5 crore on a weekly basis. This will make tracking easier. It will be important for the banking system not to become part of an excessive build-up of leverage in the corporate sector. Further, acceptance of the Kotak committee recommendations will help improve the level of corporate governance. Continued efforts to strengthen the framework to protect the interest of minority shareholders will push managements in the corporate sector to take more prudent decisions.

The debate on whether the RBI has sufficient powers to regulate state-run banks also needs to be settled. The IMF highlighted the government’s presence in the corporate sector. However, in India, the financial system is dominated by state-run banks, which is partly responsible for the ongoing bad debt problem. Since privatization is not on the cards, India should work on a governance system where government holding in banks does not affect their operations. It is encouraging to see that economists at the IMF and elsewhere are working continuously to deepen their understanding of the global financial system with the idea of protecting financial stability. However, the moot question is whether India will learn its lessons and do enough to build a strong banking system which can adequately fund the productive sectors of the economy in coming years.

Q1. Which blowout the author has been talking about?

inadequate credit in economy
easy availability of funds to frail firms
Easy monetary policy
massive bad debt problem
high credit-to-gross domestic product ratio
Solution:
We can infer from first paragraph of the passage that India has been struggling through massive bad debt problem, reason being excessive easy monetary policy.
Hence option (d) is the right answer.
Refer the lines “One concern right now is that years of excessively easy monetary policy have resulted in higher leverage.”
Q2. According to passage, what is meant by assessing the risks of credit flow?
identifying the strong firms for allocating of funds to avoid risks.
checking the availability of credit while allocating it to eligible firms.
determining the likelihood of loss on particular asset.
identifying various process to identify the risks associated with allocation of assets.
All are correct
Solution:
We can infer from second paragraph that risks associated with credit flow can lead to banking crises, financial sector stress. Hence assessing the risks means to determine the possibility of loss on allocating the credit.
Hence option (c) is the right choice.
Refer the second paragraph of the passage. “Taking the riskiness of credit allocation into account helps better predict full-blown banking crises, financial sector stress, and downside risks to growth at horizons up to three years.”
Q3. Which of the following is true about riskiness of credit allocation? 
(I) Interest coverage ratio can help in assessing the riskiness of credit allocation 
(II) It can affect global financial stability. 
(III) varies from economy to economy. 
(IV) Low riskiness of credit allocation has experienced by India in 2016
Only (I)
Only (I), (III) and (IV)
Only (II), (III) and (IV)
Only (I), (II) and (III)
All are correct
Solution:
Refer the third paragraph of the passage.
All the given options are correct. There can be a confusion regarding the statement (I), however, it is correct too as according to IMF it can help in assessing the vulnerability of the firms.
Q4. The appropriate title of the passage is

The Indian banking system
Drawbacks of credit allocation
preserving banking and financial stability
Effect of asset allocation on economies
Minimising the banking crises.
Solution:
“Effect of asset allocation on economies” is an appropriate title of the passage.
Q5. What can policymakers do to keep credit allocation healthy and avoid stress in the banking system? 
(I) Regular circulation of regulatory framework regarding stressed assets. 
(II) Interest of minority shareholders should not be of much preference. 
(III) strong corporate governance

Only (I)
Only (III)
Both (I) and (III)
Both (II) and (III)
All are correct
Solution:
We can infer from second last paragraph of the passage that RBI new framework needs to be regulated at regular basis, government should not become part of an excessive build-up of leverage in the corporate sector and there should be strong corporate governance.
Hence option (c) is the correct choice.
Statement (II) is incorrect as it is mentioned that there is a need of framework to strengthen the interest of minority shareholders.
Q6. Which of the following sentences do not hold true in context to the passage?

The risk of credit allocation depends on extent of allocation of credit to risky firms.
India should improve its governance system for avoiding financial issues.
Year 2016 exhibited a lower level in riskiness of credit allocation.
For attaining financial stability globally, collaboration of IMF and global policy makers is required.
All are correct.
Solution:
All the given sentences are correct with respect to the passage.
Q7. Which of the following alternatives among the five options provide the most similar meaning(s) of the word given in BOLD as used in the passage? 
Prudent
 (I) hegemonic 
(II) wise 
(III) cautious 
(IV) frugal

only (I)
only (I) and (II)
only (II) and (III)
only (II), (III) and (IV)
all are correct
Solution:
Prudent means acting with or showing care and thought for the future. Hence, in context to the passage, it has same meaning as wise, cautious and frugal.
Frugal means careful when using money or food, or (of a meal) cheap or small in amount.
Q8. Which of the following alternatives among the five options provide the most similar meaning(s) of the word given in BOLD as used in the passage? 
 Vulnerable
(I) pregnable 
(II) shrewd 
(III) unfortified 
(IV) assiduous

only (I)
only (I) and (III)
only (II) and (IV)
only (II), (III) and (IV)
all are correct
Solution:
Vulnerable means exposed to the possibility of being attacked or harmed, either physically or emotionally. Hence it has same meaning as pregnable and unfortified.
Q9. Which of the following alternatives among the five options provides the most opposite meaning(s) of the word given in BOLD as used in the passage? 
 Moot 
(I) settled 
(II) dire 
(III) resolved 
(IV) certain 
only (I)
only (I) and (III)
only (II) and (IV)
only (I), (III) and (IV)
all are correct
Solution:
Moot means subject to debate, dispute, or uncertainty. Hence it has opposite meaning as settled, resolved and certain.
Q10. Which of the following alternatives among the five options provides the most opposite meaning(s) of the word given in BOLD as used in the passage? 
Threaten
(I) assist 
(II) relieve 
(III) flatter 
(IV) protect
only (I)
only (I) and (III)
only (II) and (IV)
only (I), (III) and (IV)
all are correct
Solution:
Threaten means cause (someone or something) to be vulnerable or at risk; endanger. Hence all are opposite in meaning to it.
Directions (11-15): The following question consists of a sentence, whose certain parts are highlighted in bold. The highlighted portion is grammatically correct. Each sentence is followed by the three expressions which may or may not contain grammatical errors. Choose the most appropriate alternative among the five options which states the incorrect part(s) of the sentence. If the given sentence is grammatically correct and contextually meaningful, choose option (E) i.e., “No error” as your answer. 


 Q11. While India has had cultural linkages with the Indo-China region, in modern times it extended political support to Vietnam during their protracted liberation struggle.



(I) While India has had cultural linkages 
(II) with the Indo-China region 
(III) it extended political support to Vietnam during their

Only (I)
Only (III)
Both (I) and (II)
Both (II) and (III)
No error
Solution:
There is an error in the third expression, the determiner “their” should be replaced by “its” to make the sentence grammatically feasible. It is to be noted that the subject that the determiner is referring is singular [India]. The other expressions of the sentence do not require any correction. Hence option (b) is the correct choice.
Q12. New Delhi is of the view that the South China Sea issue should be resolve peacefully by the involved countries accordingly the United Nations Convention on the Laws of the Sea.
(I) New Delhi is of the view 
(II) issue should be resolve peacefully 
(III) by the involved countries accordingly

Only (I)
Only (II)
Only (III)
Both (II) and (III)
No error
Solution:
There are errors in both the expressions (II) and (III). In the case of expression (II), the verb “resolve” should be replaced by its past participle form “resolved” as the auxiliary verb “should be” should be followed by the third form of the verb (V3). In the third expression, the adverb “accordingly” should be replaced by the phrase “in accordance with” to make the sentence meaningful and grammatically correct. It is to be noted that the adverb “accordingly” means in a way that is appropriate to the particular circumstances; while the phrase “in accordance with” refers to agreement or conformity with an authority, rules or procedures. Hence option (d) is the correct choice.
Q13. Legislative assemblies in various states have been dissolved before the end of their tenure on account of internal political developments in the states.
(I) have been dissolved 
(II) of their tenure on account of 
(III) internal political developments in the states

Only (I)
Only (III)
Both (I) and (II)
All (I), (II) and (III)
No error
Solution:
The given sentence is grammatically correct and doesn’t require any correction. Hence option (e) is the correct choice.
Q14. Voters vote on local issues while voting for the state assemblies and are motivated by national and international concerns while electing their representatives in the Lok Sabha.
 (I) Voters vote on local issues 
(II) the state assemblies and are motivated 
(III) while electing their representatives in the Lok Sabha

Only (I)
Only (II)
Both (I) and (II)
Both (II) and (III)
No error
Solution:
The given sentence is grammatically correct and doesn’t require any correction. Hence option (e) is the correct choice.
Q15. A recently Price water house Cooper’s study of 200,000 jobs in 29 countries said evolving technology like automation and robotics could be delivered good and bad news.
(I) A recently Price water house Cooper’s 
(II) said evolving technology 
(III) could be delivered good and bad news
Only (I)
Only (II)
Both (I) and (III)
All (I), (II) and (III)
No error
Solution:
There are errors in both the first and the third expressions. In the case of first expression, the adverb “recently” should be replaced by an adjective “recent” as it signifies the noun “Price water house Cooper’s study”. In the last expression, “could be delivered” should be replaced by “could deliver” as the sentence is not in passive voice. The other portions of the sentence are grammatically correct. Hence option (c) is the correct choice.
               



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