SBI PO Prelims- English Miscellaneous Quiz: 3rd June

Directions (1-5): Read the following passage and answer the questions that follow it. Some words are highlighted to help you to answer some of the questions. 

For faster growth, what is critically needed is a higher investment rate. In current prices, the ratio of Gross Fixed Capital Formation to Gross Domestic Product has stayed low at 28.5% between 2015-16 and 2017-18. In 2018-19 it is estimated at 28.9%. In 2007-08, it was as high as 35.8%. In constant prices, the ratio, has, however, shown a smaller decline from the peak. It is true that for a time growth can come out of better utilisation of existing capacity. But for sustained growth, the ratio has to go up and that too substantially. 

There are several studies which indicate a fall in corporate investment. Every year the Reserve Bank of India (RBI) publishes a forecast of corporate investment. It uses the data made available by banks and other financial institutions on the phasing of capital expenditures of projects sanctioned by them. An article in the March 2019 issue of the RBI Bulletin says that in 2017-18, the capital expenditures of the corporate sector were estimated at ₹1,487 billion. There has been a steady decline from ₹2,050 billion in 2014-15. The industry-wise distribution of projects sanctioned by banks and other institutions in 2017-18 shows that the power sector accounted for 38.2% of the total expenditure. Pure manufacturing had only a small share. All these point to the urgent need to accelerate investment. 

First, much of public investment happens outside the Budget. In 2019-20, capital expenditures of the Central government to GDP are expected to be 1.6%. This ratio has not shown much change. The bulk of public investment comes from public sector enterprises, including the Railways. What is needed is for the government to interact with all public sector units and prepare a programme of public investment for 2019-20. Public sector units can take a longer-term view than the private sector. A strong public investment programme can be a catalyst of private investment. In a situation such as the present one, it can crowd in private investment. Second, there have to be sector- or industry-wise discussions between the government and industrialists to understand the bottlenecks that each industry faces in making investment and take actions to remove them. 

Banks are under stress and the ratio of non-performing assets (NPAs) has risen. We need to resolve this issue as early as possible so that banks can get back to lending at a significant pace. In the absence of term lending financial institutions, banks provide both working capital and long-term loans. That is why resolving the issue of NPAs is critically important for larger flow of long-term funds. The government must infuse adequate capital into banks at one go. There are mechanisms such as resolution councils or committees which can help to resolve the NPA problem without the bank management coming under scrutiny of investigative agencies. Over the medium term we should consider reviving the setting up of separate long-term financial institutions, partly funded by government.

Q1. As per the passage, what is critically needed for faster growth an economy?

Q2. Which of the following is/are correct in context of the passage above? 

(I) Every year the Reserve Bank of India (RBI) publishes a forecast of corporate investment.
(II) The bulk of public investment comes from public sector enterprises, including the Railways. 

(III) There has been great concern about the inability of the economy to generate adequate employment.

Q3. Which of the following is/are incorrect in context of the passage above? 

(I) It is faster growth and faster investment which will generate employment. 

(II) Resolving the issue of NPAs is critically important for larger flow of long-term funds. 

(III) It is generally argued that growth will happen only if there is an adequate increase in demand.

Q4. Which of the following words has a meaning which is SIMILAR to the word ‘decline’?

Q5. Which of the following words has a meaning which is OPPOSITE to the word ‘reviving’?

Directions (6-10): In each of the following questions four words are given in bold. Which of the following words must replace each other so that the sentence becomes contextually correct and meaningful. If the sentence is correct as it is, choose option (E) as your answer. 

Q6. The reptile (1)belongs to a family of snakes found only in peninsular India and Sri Lanka. They are non-venomous, burrowing and (2)mostly earthworm-eating and are called shieldtails (3)appear the large, flat tips of their tails, which make them (4)after almost sliced off.

Q7. It will be tight (1)until the finish and the team which (2)controls their nerves best will (3)prevail. We're in front and in control of our own destiny which is an (4)advantage.

Q8. The deal is good for the ecosystem as it will (1)decent up the fact that yes, it is possible to get good (2)open exits out of India as well and hopefully (3)encourage more investors to continue (4)investing in the Indian start-up ecosystem.

Q9. While it was Kousalya Devi who (1)ushered in the trend of film adaptations of Telugu novels with Doctor Chakravarthy, it was Sulochana's writings that (2)captured the fascination of an average reader since the '60s (3)reflecting contemporary trends, relationships with her signature (4)nostalgic style.

Q10. The real (1)reason was that the (2)deadline for (3)heating the constitution was less than two months away and the political climate was (4)finalising up.

Directions (11-15): In each of the following sentences, there is a blank space. Below each such sentence, there are five options with one word each. Fill up the blank with the word that makes the sentence grammatically and contextually correct. 

Q11. This time it is no different, capital outflows are ……………………… the currencies of many emerging market economies.

Q12. Some months ago, a global leader of the IT industry set sections of India’s corporate-sector elite …………………… with the comment that Indians are not creative.

Q13. The doctor asked his potentially paralyzed patient to …………………. his toes back and forth quickly to see if he had movement in his feet.

Q14. My father is ……………….. pessimistic about life and pushes his overly negative views on everyone else.

Q15. The Mongols were able to conquer so many countries because their archers and military techniques were ………………. superior to most armies of the time.