English Quiz for IBPS Clerk Mains 20th December

Directions (1-7): Read the following passage and answer the following questions.

Government plans to amend IBC to ring-fence buyers of stressed assets from prosecution. While the amendments will help ring-fence buyers, aspects like cross-border insolvency remain to be addressed. The recent amendments to the Insolvency and Bankruptcy Code (IBC) approved by the Union Cabinet can go a long way in addressing some of the gaps in the resolution process. Crucially, the proposed Bill has sought to provide a clean slate to buyers of stressed assets, by shielding them from prosecution for offences by previous promoters.

By way of insertion of Section 32A in the Code, the amendment seeks to provide immunity to the corporate debtor and its assets, from an offence committed prior to the commencement of the insolvency process. In other words, it seeks to ring-fence the corporate debtor and property from offences committed by the previous management or promoters. At a time when there have been growing concerns over investigative agencies initiating action against companies after the completion of the resolution process (Bhushan Power and Steel), the amendment offers much needed clarity and relief to prospective buyers. At the same time, the Bill requires the corporate debtor or other persons to extend cooperation to investigating authorities. Importantly, the immunity will only apply in cases where the resolution plan has resulted in a change in management or control of the corporate debtor. While the amendment seeks to release the corporate debtor from the liability of the offence, it continues to hold the concerned persons responsible for the offences and they can be prosecuted.

In a bid to check frivolous insolvency applications, the Bill also seeks to raise the minimum threshold for initiating the process, in the case of financial creditors represented by an authorised representative. In the case of home-buyers for instance, the application for initiating insolvency process has to be filed by at least 100 creditors or 10 per cent of such creditors, whichever is lower. The Bill also clarifies that licences, permits, concession, clearances, etc., in force cannot be suspended or terminated during the moratorium period, provided there is no default in payment of dues. This is critical to ensure that the company is maintained as a going concern and value is preserved. The Bill has also sought to allow the resolution professional to continue to manage the company in case the process is delayed beyond the 330-day deadline.

While the recent amendments and the Supreme Court ruling in the Essar Steel case upholding the rights of the secured creditors, should help smoothen the IBC process, there are several other aspects that require closer scrutiny. To curb frivolous insolvency applications, increasing the default threshold — currently at a mere ₹1 lakh — is critical. The Bill did not include the much awaited cross border insolvency framework, which is imperative to deal with cases like the Nirav Modi scam. The global web of shadow entities Nirav Modi used for perpetrating the $4 billion fraud, only goes to show how lenders or government agencies may be incapable of recovering anything in such cases. Holding defaulters responsible in the eyes of the law is one thing; bringing them to book is another thing altogether.

Q1. What protection do the IBC amendments provide to customers of bad loans?

(a) Protecting buyers from getting prosecuted for the offences committed by previous promoters.

(b) Giving them a clean slate to write on

(c) Addressing the issues of buyers to get better returns

(d) Bringing changes in the amendments to benefits banks

(e) None of these

Q2. On what condition does the bill provide immunity to the corporate debtor and property?

(a) Giving a clarity to the potential victims

(b) Change in management or control from the corporate debtor due to the resolution plan

(c) Commencing the insolvency process

(d) Need of extension in cooperation from the debtors’ side

(e) None of these

Q3. How does the Bill deals with the senseless insolvency applications?

(a) Initiating the process without any paper-work

(b) Paving way for the authorized representatives

(c) Mandate to file insolvency application by around 10% of home-buyers

(d) Uplifting the minimum limits in order to begin the process

(e) Both (b) and (c)

Q4. What are the guidelines of the Bill in case of no payment dues during moratorium period?

(a) Non-termination and Non-Suspension of Licenses, concession, permits etc. forcibly

(b) Lowering the suspension rates

(c) Maintenance of values and concerns

(d) Both (b) and (c)

(e) None of These

Q5. What are the issues that still need to be addressed?

(a) Non-inclusion of framework for cross-border insolvency

(b) Curbing the senseless insolvency by increasing the default limit from 1Lakh.

(c) Both (a) and (b)

(d) Bringing the defaulters before the law

(e) None of these

Q6. Which of the following words is most similar in meaning with the FRIVOLOUS highlighted in the passage?

(a) Serious

(b) Flippant

(c) Genuine

(d) Practical

(e) None of these

Q7. Which of the following words is most opposite in meaning with the THRESHOLD highlighted in the passage?

(a) Allowance

(b) Enhanced

(c) Concentrated

(d) Magnitude

(e) None of these

Directions (8-15): In each of the following questions, four sentences are given out of which one may or may not have grammatical errors. Choose the sentence having grammatical error as your answer. If all the given statements are correct grammatically, mark your answer as; (e)[All are correct].

Q8.

(a) Pawan Kumar Goenka has been re-appointed the managing director at M&M

(b) Fitch expects the RBI to cut its policy rate to another 65 basis points in 2020

(c) Gopinath stressed on the need for finding new revenue streams to balance any scaling up of public spending.

(d) The Modi administration has taken several steps in recent months to counter the slowdown.

(e) All are correct

Q9.

(a) The RBI provided monetary stimulus by way of lowering its benchmark policy rates

(b) Official data released earlier this month showed that the industrial sector remained weak with output shrinking 3.8% in October.

(c) Despite Donald Trump at the helm, US remains one pillar of the Modi Doctrine of foreign policy.

(d) If protesters are indeed out to defend the Constitution, then they must adheres to it.

(e) All are correct

Q10.

(a) From the statements of India’s top leaders, it appears that the government will not relent on the CAA

(b) There have been ugly incidents of arson and stone-hurling by miscreants in various parts of India.

(c) The job of law enforcers here is to ensure that civil order is not disturb.

(d) As many as 20 Delhi Metro stations were reportedly shut, while many students, civilians and leaders were hauled off by the police.

(e) All are correct

Q11.

(a) Billionaires owe their billions not just to their market success but also the helping hand of the law.

(b) Economic inequality has moving to the top of the political agenda in many countries, including free-market poster children like the US and the UK.

(c) To be sure, there are good reasons for states to adopt laws that empower private agents to reap the rewards of innovation and business success.

(d) Many see CAA as unconstitutional, given its use of religion as an eligibility criterion for citizenship.

(e) All are correct

Q12.

(a) In 1985, the estate duty law was abolished on the grounds of high implementation cost and administrative problems versus meagre estate duty collection.

(b) Hero Motocorp Ltd is the country’s largest two-wheeler maker, enjoying about half the market share with a dominant in motorcycles.

(c) We are embarking on a process of simplifying, synergising and scaling (3S) to create an agile, powerful platform.

(d) It seems that while the goal was the same, the paths chosen were different.

(e) All are correct

Q13.

(a) Suspending the order of Mistry’s reinstatement for four weeks gives Tata Sons time to appeal the order before the Supreme Court.

(b) The auto sector pain has indeed been the culprit behind the sharp slowdown in loan growth.

(c) IndusInd Bank is targeting 18-20% growth in vehicle finance, which form more than a quarter of its loan book.

(d) Heightened risks to pharmaceutical sector are likely because of an increase in the number of US FDA (food and drug administration) inspections.

(e) All are correct

Q14.

(a) What could stand in good stead for the sector is its control on costs, with the added element of curtailing capacity expansion.

(b) Given the heavy and looming overhangs, such high earnings growth could be at risk.

(c) If domestic pricing pressures increasingly, margins and profitability could be eroded.

(d) Hero cannot find relief in exports where the BS-VI emission rules are not applicable.

(e) All are correct

Q15.

(a) Indian economy has decelerated to a six-and-half-year low of 4.5% in the September quarter owing to sharp slowdown in consumption demand.

(b) Our country has capability to come out stronger from such situations and it will

(c) Assuring the industry of further action to remove criminal provisions in the Companies Act, Modi said business failure is not a crime.

(d) Valuations are not demanding, but acceleration in revenue growth trajectory with margin improvement would be keyed to drive further rerating.

(e) All are correct

Solutions:

S1. Ans. (a)

Sol. Refer to the first paragraph, the hint can be drawn from the lines, the proposed Bill has sought to provide a clean slate to buyers of stressed assets, by shielding them from prosecution for offences by previous promoters.Hence, option (a) is the right answer choice.

S2. Ans. (b)

Sol. Refer to the second paragraph, the hint can be drawn from the lines, Importantly, the immunity will only apply in cases where the resolution plan has resulted in a change in management or control of the corporate debtor.Hence, option (b) is the right answer choice.

S3. Ans. (e)

Sol. Refer to the third paragraph, the hint can be drawn from the lines, In a bid to check frivolous insolvency applications, the Bill also seeks to raise the minimum threshold for initiating the process, in the case of financial creditors represented by an authorised representative. In the case of home-buyers for instance, the application for initiating insolvency process has to be filed by at least 100 creditors or 10 per cent of such creditors, whichever is lower.’Hence, option (e)[Both (b) and (c)] is the right answer choice.

S4. Ans. (a)

Sol. Refer to the third paragraph, the hint can be drawn from the lines, The Bill also clarifies that licences, permits, concession, clearances, etc., in force cannot be suspended or terminated during the moratorium period, provided there is no default in payment of dues. This is critical to ensure that the company is maintained as a going concern and value is preserved.Hence, option (a) is the right answer choice.

S5. Ans. (c)

Sol. Refer to the last paragraph of the passage, the hint can be drawn from the lines, While the recent amendments and the Supreme Court ruling in the Essar Steel case upholding the rights of the secured creditors, should help smoothen the IBC process, there are several other aspects that require closer scrutiny. To curb frivolous insolvency applications, increasing the default threshold — currently at a mere ₹1 lakh — is critical. The Bill did not include the much awaited cross border insolvency framework, which is imperative to deal with cases like the Nirav Modi scam.Hence, option (c)[Both (a) and (b)] is the right answer choice

S6. Ans. (b)

Sol. flippant is the most similar in meaning with the given word. Hence, option (b) is the right answer choice.

S7. Ans. (d)

Sol. Magnitude is the most opposite in meaning with the given word. Hence, option (d) is the right answer choice.

S8. Ans. (b)

Sol. ‘by’ will be used instead of ‘to’. Hence, option (b) is the right answer choice.

S9. Ans. (d)

Sol. ‘Adheres’ will be replaced by ‘adhere’. Hence, option (d) is the right answer choice.

S10. Ans. (c)

Sol. ‘Disturb’ will be replaced by ‘Disturbed’. Hence, option (c) is the right answer choice.

S11. Ans. (b)

Sol. ‘Moving’ will be replaced by ‘Moved’. Hence, option (b) is the right answer choice.

S12. Ans. (b)

Sol. ‘Dominant’ will be replaced by ‘Dominance’. Hence, option (b) is the right answer choice.

S13. Ans. (c)

Sol. ‘form’ will be replaced by ‘forms’. Hence, option (c) is the right answer choice.

S14. Ans. (c)

Sol.‘increasingly’ will be replaced by ‘increasing’. Hence, option (c) is the right answer choice.

S15. Ans. (d)

Sol. ‘Keyed’ will be replaced by ‘key’ in the sentence (d). hence, option (d) is the right answer choice.