Practice Reading Comprehension from "The Hindu" (Dated- 16th Nov 2016)
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Reading Comprehension from “The Hindu” (Dated 16th Nov 2016)
ARTIFICIALLY CREATED DISTRESS
The government’s rationale for the extreme measure of demonetisation is not clear. There is talk of targeting black money, but the denomination of notes has nothing to do with the existence of black money, which is not held in hoards of notes but is a circulation of unrecorded and undeclared incomes. Those larger-scale activities where income is declared produce white taxable money, while large incomes generated in legal or illegal activities where these incomes are not declared in order to evade tax constitute black money. There is a constant parallel flow of black money in the economy. Clearly the monetary authorities or the government itself do/does not naively believe that black money somehow is connected to Rs.500 and Rs.1,000 notes which they call ‘high denomination’ — if they did, they would not have chosen to issue a new note of Rs.2,000 which is of even higher denomination. So what is the point of the measure? Investigation of and raids on suspected tax evaders do not require such an extreme step as almost complete demonetisation, which in present conditions of lack of preparedness, amounts to economically disenfranchising the entire population.
The adverse impact on the economy of sharp monetary contraction (to the extent of around Rs.14 lakh crore) is already evident, and the greatest sufferers are the rural population, and the urban poor and middle class. The first impact is on the supply chain of goods and services which is disrupted, and this is then feeding back to impact production. Traders and retailers have been deprived overnight of the funds to carry on their business, and the former can neither source goods after using up their existing stocks, nor can they pay for the transport of the goods to the market. Retailers cannot sell the goods since customers do not have money to buy them, and they can provide goods on credit to customers only up to a point since they need to pay their suppliers and cannot obtain enough new notes to do so. The entire chain of supply and distribution has been thoroughly disrupted.
In villages the kharif harvest is not yet fully marketed in many regions, but producers are unable to sell their crops owing to the shortage of the new money. Many are being offered drastically lower prices for their produce which runs the risk of damage in coming days. Farmers who have already marketed their kharif crop and have existing notes in hand now cannot buy seed and fertilisers for sowing rabi since there is no lower denomination or substitute money available in their nearest banks. Delayed rabi sowing is bound to affect future output. The majority of farmers are net purchasers of food, and rural labourers and artisans are entirely dependent on purchase from the market. They are in the greatest distress since they cannot purchase basic necessities for their families with their existing money, and their attempts to change it for new money is fruitless since the latter is simply not available to the required extent in banks. Even in a relatively organised sector like tea plantations, daily wages in the new money have not been paid to workers who are unable to meet their subsistence needs.
1). As per the passage why the farmers were unable to buy seed and fertilisers?
a) Thus due to demonetisation which leads to economy downfall has made a way to raise in price of seeds and fertilizers.
b) There were only less number of banks in rural areas which delays the process of exchanging the new denomination money.
c) Thus the seeds and fertilizer traders were hesitating to accept the old denomination money.
d) Thus there is a shortage of lower denomination money or equivalent new money, to make trade with valid money.
e) None of these
2). What is referred as white taxable money from the above passage?
a) The new money which is been exchanged for banned old denomination money.
b) The income or money for which is specified properly and the stipulated amount of tax has been paid for it.
c) The newly released 2000 Rs denomination money that has been introduced by government.
d) The tax money which is been paid after the declaration of banning the 500 and 1000 rupee money.
e) None of these
3). What does the third paragraph mainly discuss about?
a) It discuss about the problems faced by farmers and village people on selling and buying goods, seeds, and other essential needs.
b) It discuss about the problems faced by farmers in village in agriculture harvest.
c) It discuss about the problems faced by tea plantation sector on paying of daily wages to their workers due to shortage of newly introduced money.
d) It discuss about the problems faced by farmers in village people on exchanging the new money for the old money at banks.
e) None of these
4). According to the passage In what way demonetisation is going to help in controlling black money
a) As it will help people to conserve more space in storing the currency in form of cash as the new higher denomination is introduced.
b) As it will help in bringing out illegal, unaccounted and tax evaded money which is been accumulated at large amount around the country.
c) As it will make a big warning to the persons who is trying to evade from tax and people of making unaccounted transaction.
d) Thus it will encourage people to open bank accounts and also to make more digital transaction in-order to avoid demonetisation problem in future.
e) None of these
5). Which of the following is/are been considered as a impact caused due to demonetisation?
i) It causes interruption to goods and services in supply chain which will effect on production.
ii) It leads to affect greatly in downfall of Indian share markets that also leads to reduce in value of Indian money .
iii) the business of traders and retailers has faced a setback due to lack of funds of new money.
iv) The retailers could not able sell their goods as they are not permitted to deposit their revenue in their bank accounts.
a) Only i, ii, and iii
b) Both iii and iv
c) Only i
d) Only i, iii and iv
e) Both i and iii
6). What is the synonyms of " NAIVELY " ?
7). What is the synonyms of " HOARDS " ?
8). What is the antonyms of " DEPRIVED " ?
9). What is the synonyms of " RATIONALE " ?
10). What is the antonyms of "FRUITLESS "?
1.) D 2.) B 3.) A 4.) B 5.) E 6.) B 7.) D 8.) C 9.) A 10.) C
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