“20-20” English Question | Crack IBPS RRB PO/Assistant 2018 Day-201

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“20-20” English Questions | Crack IBPS RRB PO/Assistant 2018 (Day-201)

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Direction (1-10): Read the following passage carefully and answer the questions given below it.

The Indian banking sector continues to struggle with higher non-performing assets, particularly when it comes to public sector banks. Much ink has been spilled on how to address this and roll back the adverse effects on productive sectors of the economy. This core problem is being addressed at various levels. There are a number of issues surrounding it that also need to be considered, however. The announcement by CRISIL however, bodes well for banks. According to CRISIL, gross NPAs in the banking system are expected to be about 10.5 per cent of advances as of March 2018, up from 9.5 per cent as of March 2017. CRISIL, believes that the performance of micro, small and medium enterprises could be negatively impacted. This is due to the recent announcement of farm loan waivers and the impact of Goods and Services Tax. Though the loan waivers have caused an increase in agricultural loan NPAs, it is expected to go down when funds are transferred to banks to compensate for the same.  This, in turn, will also affect the governance and operational issues that have played into the NPA mess. The standing committee on finance, headed by M. Veerappa Moily, has done just that with its latest report. Some of the recommendations of the committee need wider discussion. First, the committee has questioned the capital adequacy rules imposed by RBI, particularly for banks that do not have international exposure and are under the prompt corrective action framework. Relaxing the norms will improve their lending capacity and generate higher interest income. Second, the committee has suggested that RBI should consider separate treatment for NPAs arising due to wilful defaults and those because of external shocks, such as policy or judicial interventions. This is a slippery slope and could lead to unnecessary complications. In this context, the RBI has done well by not relaxing rules for power producers. Even if some loans have become non-performing because of external factors, there is no guarantee that banks will be able to recover money by holding on to them for an extended period

Third, to avoid large haircuts, the committee has recommended fixing a base price for bidding of assets under the bankruptcy process. This will again impede timely resolution. Fixing a floor price will affect price discovery and discourage bidders. It is important to recognize that the resolution system under the Insolvency and Bankruptcy Code is still at an early stage and dealing with a large volume of cases. Fourth, the committee has noted that banks lack the resource base and expertise to engage in long-term project financing. Therefore, the architecture of specialized long-term finance institution should be reconsidered. Fifth, as RBI has argued in the past, the central bank told the committee that it does not have adequate powers to control PSBs. The committee has recommended constituting a high-powered committee to evaluate the powers and authority of RBI, among other things. Since questions have been raised by the regulator and other stakeholders, it would be advisable to study the issue in detail, as it will help strengthen the overall regulatory architecture. PSBs are currently dealing with difficult issues with no easy solutions. Concurrent with that, operations and governance in PSBs require reform. The committee believes that the present crisis is transitory. However, the future will depend on the way it is managed. A quicker resolution of NPAs through the Insolvency and Bankruptcy Code and schemes such as Strategic Debt Restructuring and Scheme for Sustainable Structuring of Stressed Assets, would provide relief to the banks from the burden of NPAs. The Insolvency and Bankruptcy Code, 2016 lays down separate time-bound processes to facilitate insolvency resolution. A bankruptcy case is referred to the National Company Law Tribunal, and once it is accepted, there needs to be the implementation of a resolution plan within 180 days that can be extended by 90 days. If this timeline hasn’t been met, the company will be liquidated.  Banks and Financial Institutions have signed Inter-Creditor Agreement aimed at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending. It has been signed by 22 public sector banks, 19 private sector banks and 32 foreign banks and 12 major financial intermediaries like LIC, HUDCO etc. The ICA framework aims for faster facilitation of the stressed assets resolution. If any lender dissents, the lead lender will have the right but not the obligation to arrange for buy-out of the facilities of the dissenting lenders at a value that is equal to 85 per cent of the lower of liquidation value or resolution value

Bankers can take a cautious approach and adopt leading practices to mitigate such issues. There is a clear need among Indian banks to build a solid foundation. This could be done through a comprehensive anti-bribery and anti-corruption framework, whistle-blowing mechanism, fraud risk framework and an effective communication channel. In many cases, the root cause of most stressed assets/ NPA case could be traced back to lapses in the initial customer due diligence review, credit review mechanism, unclear mapping of related parties and inefficiencies in general in the overall sanctioning process. Transactions of borrowers must be closely inspected, especially those pertaining to related parties or imports/exports. To give an example, it has been observed that in many instances funds had been siphoned through related parties and invested in personal properties and alternate business, which was not known to banks. It is not uncommon to see that mutual trust and relationships with the borrower can hamper an objective analysis of the early warning signs. There have been many cases there fresh disbursement/ transfer have been made simply to repay old loans. Credit officers could conduct surprise site visits to the offices and factories to establish their existence and ensure operations are carried out as expected. Reactive audits have repeatedly showcased significant mismatches between actual outputs vis-à-vis books of accounts. Although independent agencies are often appointed by bankers, there have been several instances in the past where the agencies are actually related to the borrower. This leads to a conflict of interest. Suitable background information about potential relationships between the borrower and the valuation agency must be obtained to mitigate risks. The rationale of high value transactions or those which do not seem to be done in the normal course of business must be questioned immediately. Mandatory investigation for accounts identified as Special Mention Accounts category 1 or 2 –Banks could identify thresholds/ parameters on the basis of which the borrowers’ affairs could be investigated for any wrong doing or wilful default either internally or through external agencies. Monitoring and reporting NPAs seem to be quite underrated in the Indian scenario. Recently RBI mandated independent audits to be conducted on certain public sector banks around the review of their NPA monitoring & reporting systems. Bad loans are a major cause of concern and what remains to be unearthed simply because of inadequacies / inefficiencies in NPA monitoring is something worth pondering.

1) According to the passage which of the following statements have been mentioned correct about Inter-Creditor Agreement

i) The agreement has been signed by 22 public sector banks, 19 private sector banks and 32 foreign banks

ii) It aims at faster resolution of stressed assets of Rs. 50 crore or more

iii) The agreement authorises lead bank to implement resolution plan in 190 days and then prepare resolution plan

a) ii and iii

b) i and ii

c) i and iii

d) Only i

e) None of these

2) According to the passage what approaches and practices bankers should adopt to mitigate issues such as NPA or stressed assets?

i) By forging an effective policy and governance framework

ii) Mandatory investigation for accounts identified as Special Mention Accounts category

iii) Assess borrowers’ net worth through Independent valuation

a) Only iii

b) i and ii

c) ii and iii

d) i and iii

e) All are correct

3) Which of the following is true in the context of the passage?

a) RBI mandated independent audits to be conducted on certain PSBs around the review of their NPA monitoring & reporting systems.

b) India’s banks had 10.5% of their total loans categorised as non-performing or restructured

c) The IBC, 2016 lays down separate time-bound processes to conduct insolvency resolution.

d) Both a) and c)

e) None of these

4) Which of the following statements is/are mentioned correct as per the report’s recommendations of committee headed by M. Veerappa Moily?

i) The committee has recommended that RBI should consider same resolutions for NPAs arising due to external shocks and wilful defaults

ii) The committee has suggested to fix a base price for bidding of assets under the bankruptcy process

iii) The committee has suggested to reconsider the architecture of specialized long-term finance institution

a) i and ii

b) i and iii

c) ii and iii

d) Only ii

e) None of these

5) According to the passage CRISIL, believes that the performance of MSMEs could be negatively affected due to

a) The rationale of high value transactions

b) Impact of Goods and Services Tax

c) Inefficiencies in the overall sanctioning process.

d) Unclear mapping of related parties

e) None of these

6) Which of the following is not true in the context of the passage?

a) The committee headed by Veerappa Moily, has recommended constituting a high-powered committee to evaluate the powers and authority of RBI

b) A bankruptcy case if accepted by the National Company Law Tribunal, needs to implement a resolution plan within 90 days that can be extended by 60 days.

c) In order to address issue of NPA, Credit officers could conduct surprise site visits to the offices and factories to ensure operations are carried out as expected.

d) Both a) and c)

e) None of these

7) Choose the word which is most nearly the same in meaning as the word “pondering” printed in bold as used in the passage.

a) Relinquish

b) Adios

c) Jettison

d) Deliberate

e) Forsake

8) Choose the word which is most nearly the same in meaning as the word “dissents” printed in bold as used in the passage.

a) Consent

b) Accord

c) Cohere

d) Ratify

e) Demur

9) Choose the word which is most opposite in meaning of the word “siphoned” printed in bold as used in the passage.

a) Escort

b) Convoy

c) Renounce

d) Steer

e) Shepherd

10) Choose the word which is most opposite in meaning of the word “diligence” printed in bold as used in the passage.

a) Assiduity

b) Constancy

c) Vigor

d) Briskness

e) Lethargy

Direction (11-15): In the Questions given below, there are two statements, each statement consists of a blank. You have to choose the option which provides the correct set of words that fits in the blanks in both the statements appropriately making them meaningful and grammatically correct.

11)         

i) I enjoy the __________ edition of the show on Sunday.

ii) Where programmes appear in ___________ ratings for the highest single showing only have been included

a) Circumscribed

b) Omnibus

c) Precise

d) Patchy

e) Underlining

12)         

i) This artist has a supremely delicate brush-stroke that gives his work a feeling of __________lightness.

ii) Once the sky began to clear after the storm, the clouds scattered in __________ formations that resembled a celestial festival

a) Brutish

b) Coarse

c) Obscene

d) Ethereal

e) Barbaric

13)         

i) Our district was led ___________ and as a result, we wasted valuable resources.

ii) Her parents worried that she might be led _________ by her unsuitable friends.

a) Precipitous

b) Sorted

c) Astray

d) Orthodox

e) Candid

14)         

i) I hoped I would find the computer course a useful __________ to my other studies.

ii) When they visited my city, they added me on as a/an ___________ performer since I would not be touring with them.

a) Prejudice

b) Detriment

c) Adversity

d) Expropriation

e) Adjunct

15)         

i) The important thing when you’re cooking for a lot of people is not to get in a ___________.

ii) Don’t let that new tax form ___________ you, it’s not as bad as it looks.

a) Explicate

b) Fluster

c) Tranquility

d) Perturb

e) Order

Direction (16-20): In each of the following questions on phrase has been given and it has been followed by four sentences. You have to find out on which sentences phrase has been used properly according to its meaning and mark your answer from the options denoted a),b),c),d).Mark e) as your answer of you find that the phrase has been applied properly in all sentences.

 16) Catch on

i) I caught the sleeve of my jacket on a branch, and it ripped.

ii) We caught David on the snare by accident.

iii) This new dance is really beginning to catch on.

iv) I can’t believe I caught my sweet little girl on a lie

a) ii and iv

b) i and iii

c) iii and iv

d) i and ii

e) All are correct

17) Adapt to

i) Please try to adapt to our routine.

ii) The film was adapted to a famous novel.

iii) We converted our furnace to natural gas.

iv) The immigrants adapted their recipes to the ingredients

a) i and iii

b) ii and iv

c) i and ii

d) All except ii

e) All are correct

18) Pare down

i) Her style is pared-down and simple.

ii) I hope we can pare down the budget.

iii) I pared the free tickets down to my friends.

iv) The article was too long, and it took me along time to pare it down.

a) ii and iv

b) iii and iv

c) All except iii

d) i and ii

e) All are correct

19) Thrash around

i) Settle down and stop thrashing around.

ii) Timmy thrashed around all night when he had the high fever.

iii) The fox thrashed around trying to get free from the trap.

iv) The kid is in such pain that he’s been thrashing around all night.

a) All except ii

b) iii and iv

c) i and ii

d) ii and iv

e) All are correct

20) Head into

i) Try to head them into before they get home.

ii) He headed the car into the parking place.

iii) I headed mica into the ice cream store and left her on her own.

iv) The town headed into the attempt to build another mall.

a) i and ii

b) iii and iv

c) ii and iii

d) i and iv

e) All are correct

Answers:

Direction (1-10)

1) Answer: b)

It is mentioned in para 2- Banks and Financial Institutions have signed Inter-Creditor Agreement aimed at faster resolution of stressed assets of Rs. 50 crore or more which are under consortium lending. It has been signed by 22 public sector banks, 19 private sector banks and 32 foreign banks and 12 major financial intermediaries like LIC, HUDCO etc. It authorises lead bank to implement resolution plan in 180 days and leader would then prepare resolution plan.

2) Answer: e)

It is mentioned in para 3- Bankers can take a cautious approach and adopt leading practices to mitigate such issues. There is a clear need among Indian banks to build a solid foundation. This could be done through a comprehensive anti-bribery and anti-corruption framework, whistle-blowing mechanism, fraud risk framework and an effective communication channel. Although independent agencies are often appointed by bankers, there have been several instances in the past where the agencies are actually related to the borrower. This leads to a conflict of interest. Suitable background information about potential relationships between the borrower and the valuation agency must be obtained to mitigate risks. Mandatory investigation for accounts identified as Special Mention Accounts category 1 or 2 – Banks could identify thresholds/ parameters on the basis of which the borrowers’ affairs could be investigated for any wrong doing or wilful default either internally or through external agencies.

3) Answer: d)

It is mentioned in para 2&3- Recently RBI mandated independent audits to be conducted on certain public sector banks around the review of their NPA monitoring & reporting systems. The IBC, 2016 lays down separate time-bound processes to facilitate insolvency resolution

4) Answer: c)

It is clearly mentioned in para 1&2- The standing committee on finance, headed by M. Veerappa Moily, has done just that with its latest report. Some of the recommendations of the committee need wider discussion. The committee has suggested that RBI should consider separate treatment for NPAs arising due to wilful defaults and those because of external shocks, such as policy or judicial interventions. This is a slippery slope and could lead to unnecessary complications. Third, to avoid large haircuts, the committee has recommended fixing a base price for bidding of assets under the bankruptcy process. This will again impede timely resolution. Fourth, the committee has noted that banks lack the resource base and expertise to engage in long-term project financing. Therefore, the architecture of specialized long-term finance institution should be reconsidered

5) Answer: b)

It is clearly mentioned in para 1- CRISIL, believes that the performance of micro, small and medium enterprises could be negatively impacted. This is due to the recent announcement of farm loan waivers and the impact of Goods and Services Tax.

6) Answer: b)

It is clearly mentioned in para 1- A bankruptcy case is referred to the National Company Law Tribunal, and once it is accepted, there needs to be the implementation of a resolution plan within 180 days that can be extended by 90 days. If this timeline hasn’t been met, the company will be liquidated. Fifth, as RBI has argued in the past, the central bank told the committee that it does not have adequate powers to control PSBs. The committee has recommended constituting a high-powered committee to evaluate the powers and authority of RBI, among other things. Credit officers could conduct surprise site visits to the offices and factories to establish their existence and ensure operations are carried out as expected.

7) Answer: d)

The meaning of word pondering is to think about something carefully, especially before making a decision

8) Answer: e)

The meaning of word dissents is to disagree or contradict

9) Answer: c)

The meaning of word siphoned is to conduct or carry

10) Answer: e)

The meaning of word diligence is careful and persistent work or effort.

Direction (11-15)

11) Answer: b)

The meaning of “omnibus” is “a collection of works by one author or several works on a similar topic”

12) Answer: d)

The meaning of “ethereal” is “extremely delicate and light in a way that seems not to be of this world”

13) Answer: c)

The meaning of “Astray” is “away from the correct path or direction.”

14) Answer: e)

The meaning of “adjunct” is “a thing added to something else as a supplementary rather than an essential part”

15) Answer: b)

The meaning of “fluster” is “make someone confused or state of anxiety”

Direction (16-20)

16) Answer: b)

The meaning of “catch on” is to snag something on something or to become popular and the phrase has been applied properly in i and iii sentences.

17) Answer: d)

The meaning of “adapt to” is to alter something so that it is better suited to something else and the phrase has been applied properly in i, iii and iv sentences.

18) Answer: c)

The meaning of “pare down” is to cut someone down to something or trim something and the phrase has been applied properly in i, ii and iv sentences

19) Answer: e)

The meaning of “thrash around” is to move or flail around restlessly or violently and the phrase has been applied properly in all the sentences

20) Answer: c)

The meaning of “head into” is to direct someone or something into someone or something and the phrase has been applied properly in ii and iii sentences

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

English New Pattern Questions 

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