Dear Friends, Dena Bank 2018 Notification has been released we hope you all have started your preparation. Here we have started New Series of Practice Materials specially for Dena Bank 2018. Aspirants those who are preparing for the exams can use this “20-20” English Questions.
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Direction (1-10): Read the following passage carefully and answer the questions given below it.
This no mean achievement that the daunting fiscal deficit target of 3.5% of GDP for the past year was met. Continuing this trend in the future will enable the realisation of the preferred 60% debt-GDP ratio by 2023. The Fiscal Responsibility and Budget Management Review Committee report, now in the public domain, has preferred a debt to GDP ratio of 60% for the general government by 2023, comprising 40% for the Central government and 20% for the State governments. For international investors and rating agencies, what matters is the fiscal position of the country as a whole. The challenge of States achieving a debt ceiling of 20% by 2023 is undoubtedly herculean for more reasons than one. First, the best of times, so to say, on fiscal issues may be somewhat behind us. For highly indebted countries, an increase in this differential of a couple of percentage points, if sustained, could lead to a change from a declining to an explosive path for the debt-to-GDP ratio. However, the advantages on account of a favourable depend primarily on the level of debt stock. In this context, the Union government, which has larger domestic liabilities of 49.23% of GDP as compared to that of the States (21% of GDP), benefits more due to a negative interest rate-growth differential. The combined debt dynamics necessitate States to run successively lower primary and fiscal deficits just to maintain their combined debt to GDP ratio at the current level. Second, the role of exogenous factors in fiscal corrections of the States. Till FY13, fiscal conduct of the States was exemplary, strictly adhering to and even outperforming the targets of the Fiscal Responsibility Legislation. No doubt positive externalities facilitated this outcome. Consolidation of Central loans and debt waiver to States based on their fiscal performance effectively reduced their interest payments to about 0.9% of Gross State Domestic Product. Third, the recent marked deterioration in fiscal health of the States. The Fourteenth FC enhanced the borrowing limits up to 0.5% of GSDP for the States. This was conditional on debt to GSDP ratio being less than or equal to 25% and interest payments being less than or equal to 10% of the revenue receipts in the preceding year.
Hence there is need for greater convergence. The most obvious one is the prudent use of powers defined in the Constitution of India under Clause (3) of Article 293. This makes it mandatory for a State to take the Central government’s consent for raising any loan if the former owes any outstanding liabilities to the latter. One or two States may indeed reach that position, endangering this constitutional instrumentality of the Central government. It would be interesting to see what happens when States cease to have any outstanding liabilities to the Central government. Looking beyond, there must be symmetry between the cost of borrowing and the quality of financial governance. Combined market borrowings have been rising consistently from 18% in FY11 to 28% in FY16. The gross market borrowing of States through State Development Loans increased by a sharp 27% in FY17 from ₹2.9 trillion in FY16. Markets expect this to rise even further by 22% in FY18 consequent upon pay revisions, implementation of Ujwal DISCOM Assurance Yojana and exclusion of State governments from the National Small Savings Fund. Risk variations across States are not reflected adequately in the cost of borrowings. This is a major concern. Fiscally healthy States should be enabled to attract higher investments at lower costs. Two, ushering in transparent accounting practices. It is being increasingly acknowledged that the current stock of State debt at 21% of GDP could be underestimated owing to fallacious budgetary practices and operational intricacies. Off-budget expenditures through State Public Sector Undertakings borrowings and explicit guarantees offered by the States do not form a part of State government liabilities. Private researchers and public auditors alike have been pointing out the growing trend of off-budget public spending and mis-categorisation of budget data.
The Comptroller and Auditor General of India while appraising States’ finances, has repeatedly censured such practices. The Fourteenth Finance Commission’s recommendation of adopting a template for collating, analysing and annually reporting the total extended public debt in their respective budgets as a supplement to the budget document must be implemented. Three, emphasising quality of expenditure. A recent HSBC report notes that quality of state spending has been gradually worsening over the past few years. The share of States’ revenue expenditure in total expenditure has remained around 80% and States’ non-developmental expenditure has risen by over 50% from FY2013 to FY2016. The RBI’s latest assessment of State Budgets with the theme, Quality of Sub-national Public Expenditure, raises the concerns about dominance of revenue expenditure in the States. While the quantum of untied funds from the Centre to the States has increased owing to the recommendations of the FFC, expenditure on physical and social infrastructure by the States has remained stagnant. Four, encapsulating Fiscal Discipline in determining inter se tax shares of different States. Fiscal discipline as a criterion for tax devolution was used by Eleventh, Twelfth and Thirteenth Finance Commissions for incentivising the States in prudent management of its finances. However, the FFC dropped this indicator and accommodated Population 2011 and Forest Cover in its devolution formula. Given the deteriorating condition of State finances, the Fifteenth Finance Commission could consider restoring fiscal discipline as a determinant for horizontal devolution of funds.
1) According to the passage which of the following are dragging factors making it a challenge for states in achieving a debt ceiling of 20%?
- The role of exogenous factors in fiscal corrections of the States.
- Restoring fiscal discipline as a determinant
- The recent marked deterioration in fiscal health of the States
a) ii and iii
b) i and ii
c) i and iii
d) All except i
e) None of these
2) According to the passage what was the theme of latest assessment of State Budgets of RBI?
a) Public Sector Undertakings borrowings
b) Quality of Sub-national Public Expenditure
c) Deteriorating condition of State finances
d) Loopholes of Off-budget expenditures
e) None of these
3) According to the passage what are the instrumentalities available with the Central government to ensure greater convergence?
- Imitating transparent accounting practices.
- Emphasizing on the quality of expenditure.
- Summarizing Fiscal Discipline in determining inter se tax shares of different States.
a) i and ii
b) ii and iii
c) i and iii
d) Only ii
e) All of these
4) Which of the following is not true in the context of the passage?
- Off-budget expenditures through State Public Sector Undertakings borrowings and explicit guarantees offered by the States form a part of State government liabilities.
- The Union government, which has larger domestic liabilities as compared to that of the States, benefits more due to a negative interest rate-growth differential.
- Combined market borrowings have been rising consistently from 18% in FY11 to 28% in FY16.
a) i and iii
b) ii and iii
c) Only i
d) i and ii
e) None of these
5) Which of the following given statements have been mentioned correct about the Fourteenth Finance Commission?
- Fourteenth Finance Commission harbored Population 2011 and Forest Cover in its devolution formula.
- The Fourteenth Finance Commission recommended of adopting a template for analysing and annually reporting the total extended public debt in the respective budgets.
- The Fourteenth Finance Commission could consider reinstituting fiscal discipline as a determinant for horizontal devolution of funds.
a) ii and iii
b) i and iii
c) i and ii
d) Only i
e) All are correct
6) Which of the following is not true in the context of the passage?
- The Fiscal Responsibility and Budget Management Review Committee report has preferred a debt to GDP ratio of 60% for the general government by 2023
- Consolidation of Central loans and debt waiver to States based on their fiscal performance increased their interest payments to about 0.9% of Gross State Domestic Product.
- The share of States revenue expenditure in total expenditure has remained around 80% and States non-developmental expenditure has risen by over 60% from FY2013 to FY2016.
a) i and ii
b) Only iii
c) i and iii
d) All except i
e) None of these
7) Choose the word which is most nearly the same in meaning as the word “facilitated” printed in bold as used in the passage.
a) Desist
b) Expedite
c) Culminate
d) Refrain
e) Intermit
8) Choose the word which is most nearly the same in meaning as the word “daunting” printed in bold as used in the passage.
a) Embolden
b) Abetment
c) Ecstasy
d) Felicity
e) Ominous
9) Choose the word which is most opposite in meaning of the word “ushering” printed in bold as used in the passage
a) Accosting
b) Heralding
c) Bewilderment
d) Ovation
e) Portend
10) Choose the word which is most opposite in meaning of the word “encapsulating” printed in bold as used in the passage
a) Encase
b) Condense
c) Circumscribe
d) Clemency
e) Immure
Direction (11-15): Choose the set of word for each blank that best fits sentence and are grammatically correct.
11) Social media is fairly new and everyone is ________ the impact, because it can always be ______ we do not know what could happen on the legislation front on data privacy.
a) Appraising, manoeuvre
b) Gauged, swinging
c) Evaluating, manipulated
d) Disdaining, steered
e) Guesstimate, wielded
12) Betting companies warn that the change will eliminate jobs in the industry but the Campaign for Fairer Gambling, a lobby group, ________ that maintaining the previous _______ limit would also cost jobs.
a) Counters, wagering
b) Retaliate, plunging
c) Circumvent, hedging
d) Facilitates, parlaying
e) Contravene, staking
13) After the 2008 crisis, _______ in retail loans shot up and a lot of banks stopped lending to retail, credit card portfolio ________ significantly and credit limits got reduced substantially.
a) Misconduct, dwindles
b) Delinquencies, shrunk
c) Nonfeasance, condense
d) Offences, constricts
e) Dereliction, wither
14) While the Centre’s goal of homes for all by 2022 is ______ it is unlikely to be realised without a push from the States, and the launch of schemes driven by innovation and low-cost approaches, ________ rental housing should be a priority within the plan.
a) Creditable, supplemented
b) Exemplary, aggravates
c) Noteworthy, curtailing
d) Laudable, augmenting
e) Reputable, inflamed
15) India’s new bankruptcy law is being _______ down by bitter court room disputes that include the likes of Arcelor Mittal and the Tata Group ________ the law’s promise of time-bound resolution in a country famous for its sluggish legal system.
a) Annihilated, imperil
b) Bogged, jeopardizing
c) Expunge, prejudicing
d) Obscured, threaten
e) Extirpate, gambling
Direction (16-20): The sentences may contain multiple errors, find out which part of sentence has an error and mark the option given below as a), b), c), d). Choose e) as an option if you find out that sentence has no error.
16) Amongst governments there is a strong policy emphasis on A)/improving facilities in rural areas, indicating a political preference for B)/ reduced migration into urban centres, although C)/ there is a natural economic magnetism to cities D)/No Error E)/
a) B-C
b) A-D
c) C-D
d) A-C
e) No Error
17) Any user or trader dealing with virtual currencies are A)/ doing it at their own risk, the RBI has been repeatedly flagged concerns B)/ on virtual currencies like Bitcoins, stating that they pose potential financial C)/, legal, customer protection and security-related risks D)/ No Error E)/
a) A-B
b) C-D
c) B-D
d) A-C
e) No Error
18) Housing deficits have led to the proliferation of slums, lack A)/of enforcement of building norms has left the metros heavy B)/congested, and poor investing in public transport has C)/ fuelled unsustainable levels of private vehicle use D)/No Error E)/
a) B-D
b) A-C
c) B-C
d) A-B
e) No Error
19) Given the multitude of issues engaging the public attention, and A)/ to develop a holistic and integrated approach, this is a great opportunity B)/ for the I&B Ministry to prepare, plan and evolve a media strategy which C)/ can be skillfully executed in a proactive manner over various media platforms D)/No Error E)/
a) A-B
b) B-C
c) A-D
d) C-D
e) No Error
20) The imperative before the Centre and State governments is to A)/come in with policies that provide adequate services in the villages B)/, while investing in cities to ensure that there high C)/ levels of productivity and efficiency are not compromised D)/ No Error E)/
a) C-D
b) B-C
c) A-B
d) A-D
e) No Error
Answers:
Direction (1-10):
- Correct Answer is: c)
It is clearly mentioned in para 1-The challenge of States achieving a debt ceiling of 20% by 2023 is undoubtedly herculean for more reasons than one. Second, the role of exogenous factors in fiscal corrections of the States. Third, the recent marked deterioration in fiscal health of the States.
- Correct Answer is: b)
It is clearly mentioned in para 3-The RBI’s latest assessment of State Budgets with the theme, Quality of Sub-national Public Expenditure, raises the concerns about dominance of revenue expenditure in the States.
- Correct Answer is: e)
It is clearly mentioned in para 2&3-Hence there is need for greater convergence. The most obvious one is the prudent use of powers defined in the Constitution of India under Clause (3) of Article 293Two, ushering in transparent accounting practices. Three, emphasising quality of expenditure. Four, encapsulating Fiscal Discipline in determining inter se tax shares of different States
- Correct Answer is: c)
It is clearly mentioned in para 1&2-Off-budget expenditures through State Public Sector Undertakings borrowings and explicit guarantees offered by the States do not form a part of State government liabilities. Combined market borrowings have been rising consistently from 18% in FY11 to 28% in FY16. In this context, the Union government, which has larger domestic liabilities of 49.23% of GDP as compared to that of the States (21% of GDP), benefits more due to a negative interest rate-growth differential
- Correct Answer is: c)
It is clearly mentioned in para 3-The Fourteenth Finance Commission’s recommendation of adopting a template for collating, analysing and annually reporting the total extended public debt in their respective budgets as a supplement to the budget document must be implemented. However, the FFC dropped this indicator and accommodated Population 2011 and Forest Cover in its devolution formula.
- Correct Answer is: d)
It is mentioned in para 1&3-The Fiscal Responsibility and Budget Management Review Committee report, now in the public domain, has preferred a debt to GDP ratio of 60% for the general government by 2023, comprising 40% for the Central government and 20% for the State governments. Consolidation of Central loans and debt waiver to States based on their fiscal performance effectively reduced their interest payments to about 0.9% of Gross State Domestic Product. The share of States’ revenue expenditure in total expenditure has remained around 80% and States’ non-developmental expenditure has risen by over 50% from FY2013 to FY2016.
- Correct Answer is: b)
The meaning of word facilitated is make an action or process easy or easier.
- Correct Answer is: e)
The meaning of word daunting is seems difficult to deal with in prospect
- Correct Answer is: c)
The meaning of word ushering is to cause or mark the start of something new
- Correct Answer is: d)
The meaning of word encapsulating is to express the essential features of something
Direction (11-15):
- Correct Answer is: c)
The meaning of “evaluating” is to “form an opinion of something” and it is suitable for i blank and the meaning of “manipulated” is “to handle or control a mechanism in a skilful manner” so it is appropriate for ii blank.
- Correct Answer is: a)
The meaning of “counters” is to “answer or responding a reaction” and it is suitable for i blank and the meaning of “wagering” is “to more formal term for bet or put money on” so it is appropriate for ii blank.
- Correct Answer is: b)
The meaning of “delinquencies” is “lawbreaking or wrongdoings” and it is suitable for i blank and the meaning of “shrunk” is “to decrease” so it is appropriate for ii blank.
- Correct Answer is: d)
The meaning of “laudable” is “deserving praise and commendation” and it is suitable for i blank and the meaning of “augmenting” is “to build up or improve” so it is appropriate for ii blank.
- Correct Answer is: b)
The meaning of “bogged” is “to cancel or eliminate” and it is suitable for i blank and the meaning of “jeopardizing” is “put someone or something into a situation in which there is a danger of loss” so it is appropriate for ii blank
Direction (16-20):
- Correct Answer is: d)
In part a) it should be among (Among is used when the items are part of a group, or are not specifically named) instead of amongst and in part c) it should be to in place of into
- Correct Answer is: a)
In part a) it should be is instead of are and in part b) it should be flagging in place of flagged
- Correct Answer is: c)
In part b) it should be heavily instead of heavy and in part c) it should be investment in place of investing
- Correct Answer is: c)
In part a) it should be public’s instead of public and in part d) it should be through in place of over
- Correct Answer is: b)
In part b) it should be up instead of in (come up means to approach or make for) and in part c) it should be their in place of there
Daily Practice Test Schedule | Good Luck
| Topic | Daily Publishing Time |
| Daily News Papers & Editorials | 8.00 AM |
| Current Affairs Quiz | 9.00 AM |
| Quantitative Aptitude “20-20” | 11.00 AM |
| Vocabulary (Based on The Hindu) | 12.00 PM |
| General Awareness “20-20” | 1.00 PM |
| English Language “20-20” | 2.00 PM |
| Reasoning Puzzles & Seating | 4.00 PM |
| Daily Current Affairs Updates | 5.00 PM |
| Data Interpretation / Application Sums (Topic Wise) | 6.00 PM |
| Reasoning Ability “20-20” | 7.00 PM |
| English Language (New Pattern Questions) | 8.00 PM |
