6 May 2016

SBI Clerk Prelims 2016- Practice English Questions (Reading Comprehension)

SBI Clerk Prelims 2016- Practice English Questions (Reading Comprehension)
SBI Clerk Prelims 2016- Practice English Questions (Reading Comprehension) Set-28:
Dear Readers, Important Practice English Questions for Upcoming SBI Clerk Exam 2016 was given here. Aspirants those who are preparing for the examination can use this.


Directions (Q.1-10): Read the passage carefully and answer the questions given below it. Certain words/phrases are given in bold to help you locate them while answering some of the questions.

India’s external-debt profile appears similar to that of other major emerging market economics. But its short-term external debt stock is now higher than countries such as Brazil and Russia(in terms of percentage of GDP),according to Taimur Baig and Kaushik Datta, economicsts at Dcutsche Bank. India’s share of short-term debt relative to the stock of total external debt is also higher than other emerging market economics, with the exception of Turkey, they say.
Though short-term debt was contained in FY14, it was largely due to a slowdown in imports and may again rise once there is a rebound in growth and imports pick up. Some economics point out that since GDP is expressed in dollar terms, a weak rupee translates into a lower GDP number and hence, a lower ratio could be misleading.
  However, the composition of long-term term debt which is reckoned to be durable and ‘safe’ is also worrisome. While the share of almost risk-free sovereign, multilateral and bilateral credit has reduced significantly over the years, it is private corporate sector debt and ‘retail’ component in terms of NRI deposits that has swelled over the years. Proceeds from the FCNR(B) swap and overseas borrowing schemes were, in fact, the main contributors to the $31.2-billion increase in external debt in FY14,which were facilitated by the Reverse Bank to stabilise the Indian currency.
“NRI deposits do not pose material risks (as they are generally rolled over). But the increase in the share of external commercial borrowings (ECBs) exposes the domestic corporate sector significantly to external shocks, including adverse exchange rate movements,” saya Samiran Chakrabarty, Chief Indian Economist, Standard Chartered Bank. Every year about $20 billion is scheduled for repayment. The amount may not seem alarming, but the risk arises if there is a global liquidity squeeze.
          The recent trouble in Iraq has added another dimension to external sector woes, which is that the reduction in trade deficit in FY14 may reverse again. “Already struggling with a record low growth, high inflation, a weak currency, low manufacturing growth and possibility of sub-normal monsoon, the threat of oil supply shock and the resultant increase in prices add to the risks faced by the country, which could hamper India’s envisaged improvement in economic growth in FY15,” say Madan Sabnavis and Kavita Chacko of Care Ratings. If crude price risks persist, the current account deficit, which was contained in 2013-14, could deteriorate further and also add to pressure on the rupee. Care Ratings has projected a CAD for the year at 2.5 percent of GDP, assuming stable cured oil prices and a recovery in industrial production. Higher persistent cured prices would upset this calculation.

1). Which of the following statements is contrary to the facts mentioned in the given passage?
a)   In FY14, short-term debt was contained due to slowdown in imports
b)   Short-term debt is directly proportional to the quantum of imports
c)   A weak rupee translates into a lower GDP number
d)   Private corporate sector debt has decreased over the years
e)   None of these

2). Why did the Reserve bank facilities FCNR(B) swap and overseas borrowing schemes? Answer in the context of the passage.
(A) To enhance foreign reserves
(B) To increase external debt
(C) To stabilize the Indian currency
a)   Only(A)
b)   Only(B)
c)   Only(C)
d)   Only(A) and (B)
e)   All (A), (B) and (C)

3).What is/are the reasons of the author being apprehensive about India’s improvement in economic growth in FY15?
a)   The recent lraq crisis may lead to reduction in trade deficit in the current financial year.
b)   The possibility of sub-normal monsoon
c)   High inflation and low manufacturing growth
d)   Threat of oil supply shock and weak currency
e)   All the above

4).What, according to the passage, is/are true about India’s external-debt portfolio?
(A) It is similar to that of other major emerging market economics.
(B) In terms of percentage of GDP, India’s short-term external debt stock is lower than Russia’s
(C) Except Turkey, India’s share of short-term debt relative to the stock of total external debt is higher than other emerging market economics’.
a)   Only(A) and(B)
b)   Only(B)and(C)
c)   Only(A)and(C)
d)   Only(A)
e)   Only(C)

Directions (Q.6-8): 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.

5).Contained
a)   neglected
b)   accommodated
c)   controlled
d)   excluded
e)   released

6).Reckoned
a)   nullified
b)   abandoned
c)   started
d)   rejected
e)   considered

7).Envisaged
a)   anticipated
b)   amazed
c)   doubted
d)   discarded
e)   proved

Directions (Q.9-10): Choose the word/group of words which is MOST OPPOSITE in meaning of the word/group of words printed in bold as used in the passage.

9).Proceeds
a)   profit
b)   outgo
c)   income
d)   interests
e)   receipts

10).Squeeze
a)   congestion
b)   crunch
c)   restraint
d)   release
e)   influence

Answers:
1)d  2)c  3)e  4)c  5)a  6)c  7)e  8)a  9)b  10)d

For More Practice English Questions- Click Here

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