TOPIC: Reading comprehension, filler
Directions (1-10): Read the following passage carefully and answer the questions given
below it. Certain words are given in bold to help you locate them while
answering some of the questions.
The Reserve Bank of India’s decision to
keep the policy interest rate unchanged, and reaffirm its “neutral” policy
stance, clearly indicates that policymakers at the central bank are singularly
focussed on their primary remit of ensuring price stability while supporting
economic growth. That the RBI’s Monetary Policy Committee has chosen to do so
in the face of clamour for a rate cut, and Consumer Price Index data and the
bank’s own survey of households’ inflation expectations appearing benign, points to the MPC’s
determination to reassert the
central bank’s independence, especially in the rate-setting realm. Laying out
its reasoning for opting to remain “watchful”, the RBI has raised pertinent questions relating to the
outlook for price stability, the foremost being whether the “unusually low
momentum in the reading for April will endure”. It posits that the easing trend
in inflation, excluding food and fuel, may be transient given its vulnerability
to rising rural wage growth and strong consumption demand. And the elephant in
the room, in the MPC’s opinion, is the real prospect of inflationary spillovers
from the rising risk of fiscal slippages caused by farm loan waivers — Uttar
Pradesh has set the stage, and Maharashtra’s government has vowed to come up
with the State’s largest-ever. Observing that inflation has fallen below 4%
only since November 2016, the RBI has reiterated its commitment to keeping the
headline reading close to that figure on a “durable basis”.
The MPC acknowledges that the latest
monsoon forecast augurs well for the agriculture sector, and when viewed in
conjunction with continuing robust government spending, it ought to help undergird overall momentum in the
economy. The RBI’s business expectations index based on its industrial outlook
survey of April points to upbeat prospects for the manufacturing sector in the
second quarter of the current fiscal year, spurred by rising rural and overseas
demand. However, on the growth front too the RBI’s policy panel has opted for
caution given that the Central Statistics Office’s GDP and GVA (gross value
added) data released last month suggest that the effects of demonetisation have
lingered on. The RBI has accordingly cut its GVA growth forecast for the year
ending in March 2018 by 10 basis points to 7.3% and flagged the risks that
global political uncertainties, rising input costs and wage pressures and the
twin balance sheet problem (an over-leveraged corporate sector and stressed
lenders) pose to a revival in private investment demand and a more durable
economic expansion. Spelling out the priorities, the MPC has said monetary
policy can be effective only when private investment has revived, the banking
sector’s health is restored and infrastructure bottlenecks are removed. To do otherwise “risks disruptive policy
reversals later and the loss of credibility” of the RBI.
Q1. How the economic approach can be
efficacious according to the Monetary Policy Committee?
(i) By raising input costs and wage
pressures and the twin balance sheet problem.
(ii) By cutting the Gross Value added growth forecast.
(iii) By improving banking sector’s condition.
(a) Only (i) is correct
(b) Only (iii) is correct
(c) Both (i) and (ii) are correct
(d) Both (ii) and (iii) are correct
(e) All are correct
Q2. According to the passage, what is
the RBI’s strategy for reinforcing economic growth?
(a) Cutting the GDP and GVP growth
forecast.
(b) Observing the inflation rates in every second quarter of the current fiscal
year.
(c) Keeping the policy interest rates unchanged.
(d) Raising input costs and wage pressures and the twin balance sheet problem.
(e) All of the above
Q3. What is the author’s tone in the
passage?
(a) Descriptive
(b) Argumentative
(c) Analytical
(d) Satirical
(e) Didactic
Q4. What is the major concern of RBI
regarding farm loan waivers?
(a) The risks that global political
uncertainties pose to a revival in private investment demand.
(b) Rise in inflation from the risk of
fiscal slippages.
(c) Inflation spillover due to increase in demand and rising input costs.
(d) Both (a) and (c) are correct.
(e) All are correct
Q5. Which of the following is an
appropriate title in context of the passage?
(a) The Unchanging Policy interest rate
(b) The Consumer Price Index data of RBI
(c) Central Statistics Office’s GDP and GVA
(d) RBI’s monetary policy decision
(e) The inflationary spillovers
Q6. Which of the following is false in context of the passage?
(a) The latest monsoon forecast herald
well for the agriculture sector.
(b) “The monetary policy can be effective only when private investment has
revived” MPC said.
(c) The RBI has cut its GVA growth forecast by 10 basis points to 7.3%.
(d) The RBI’s Monetary Policy Committee has chosen to keep the policy rate
unchanged in the face of clamour for a rate cut.
(e) All are true
Direction
(7-8): Choose the word/group of words which is most similar in meaning to the word/group
of words printed in bold as used in passage.
Q7. Benign
(a) previse
(b) hostile
(c) endure
(d) favourable
(e) relevant
Q8. Pertinent
(a) considerate
(b) appropriate
(c) straggle
(d) abide
(e) dwindle
Direction (9-10):
Choose the word/group of words which is most opposite in meaning to the word/group
of words printed in bold as used in passage.
Q9. Undergird
(a) construe
(b) enervate
(c) Undermine
(d) fractious
(e) inure
Q10. Bottlenecks
(a) aid
(b) adamant
(c) admonish
(d) predict
(e) hapless
Direction (11-15): There are two different sentences with a blank space in each question.
Choose the word from the given options which fits into both the blanks
appropriately without altering their meanings.
Q11. (1) The only difficulty in this
______________ is to secure debtors that will not die.
(2) She was in a state of rare
contentment, an _____________ to the gaiety that was hers by nature.
(a)accretion
(b)increase
(c)enlargement
(d)accessory
(e)None of the above
Q12. (1) He issued what was in reality
an _________________ proclamation, which President Lincoln was compelled to
modify.
(2) Friction increased between the races at the South after
___________________.
(a)abolition
(b)autarchy
(c)exemption
(d)immune
(e)emancipation
Q13. (1) It was feared that there could
be a __________________ unsettling of established governments and a new
political order could come into being, oriented away from the traditional
leadership of the region.
(2) On the other hand, __________________ emigration was not sufficient
to remove the evil.
(a)comprehensively
(b)wholesale
(c)voluminous
(d)extensive
(e)haphazard
Q14. (1) The French President Emmanuel
Macron’s new centrist party is ______________ poised for a landslide victory in
the parliamentary elections.
(2) The opinion of parliament on two other questions during the session
was, ______________, influenced by events in France.
(a)evidently
(b)seemingly
(c)ostensibly
(d)apparently
(e)All of the above
Q15. (1) Parliament takes pride in
asserting the supremacy of the institution, at times even ignoring what it
perceives as judicial _______________ in its functioning.
(2) It would have been enough to have cured the whole Roxburghe Club
from _______________ with libraries and books forever and ever.
(a)concern
(b)examining
(c)tracing
(d)meddling
(e)quest
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SOLUTIONS:
S1. Ans. (b)
Sol. Refer to the last few lines of
second paragraph of the passage “the MPC has said monetary policy can be
effective only when private investment has revived, the banking sector’s health
is restored”. Hence only sentence (iii) is correct.
S2. Ans. (c)
Sol. Refer to the first few lines of
first paragraph “ The Reserve Bank of India’s decision to keep the policy
interest rate unchanged, and reaffirm its “neutral” policy stance, clearly
indicates that policymakers at the central bank are singularly focussed on
their primary remit of ensuring price stability while supporting economic
growth”.
S3. Ans. (a)
Sol. The tone of the author here is
descriptive as the author presents the detail report of the news.
S4. Ans. (b)
Sol. Refer to the last lines of first
paragraph “And the elephant in the room, in the MPC’s opinion, is the real
prospect of inflationary spillovers from the rising risk of fiscal slippages
caused by farm loan waivers”. Hence sentence (b) is true.
S5. Ans. (d)
Sol. The author describes about the
RBI’s monetary policy decision of unchanging policy rates. Hence sentence (d)
is the correct choice.
S6. Ans. (e)
Sol. All of the given statements are
true in context of the passage.
S7. Ans. (d)
Sol. Benign means benevolent or favourable. Hence it has same meaning as
favourable.
Previse means predict.
S8. Ans. (b)
Sol. Pertinent means relevant or applicable to a particular matter;
apposite. Hence it has same meaning as appropriate.
Straggle means an untidy or irregularly arranged mass or group.
S9. Ans. (c)
Sol. Undergird means provide support or a firm basis for. Hence it has
opposite meaning as undermine.
Fractious means easily irritated or annoyed.
Inure means cause to accept or become hardened to.
Construe means make sense of.
Enervate means weaken mentally or morally.
S10. Ans. (a)
Sol. Bottlenecks means blockage/impediment. Hence it has opposite
meaning as aid.
Adamant means refusing to be persuaded or to change one’s mind.
Admonish means scold.
Hapless means unfortunate and deserving pity.
S11. Ans. (a)
Sol. Accretion means a thing formed or added by gradual growth or
increase.
S12. Ans. (e)
Sol. Emancipation means the fact or process of being set free from
legal, social, or political restrictions; liberation.
S13. Ans. (b)
Sol. Wholesale means done on a large scale; extensive.
S14. Ans. (e)
Sol. All the given options fit into the
blanks appropriately as all four words mean the same i.e. so as to give the
impression of having a certain quality; apparently.
S15. Ans. (d)
Sol. Meddling means interfering in something that is not one’s concern.
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