OBJECTIVE ENGLISH ---- SBI PO/IBPS PO
Directions (Q. 101-110): Read the passage carefully and answer the questions given below it. Certain words/ phrases have been given in bold to help you locate them while answering some of the questions.
Economic development is the centrepiece of this government's social contract. A clear and ambitious plan will have to be articulated and delivered upon by policymakers in order to achieve this implied contract with voters. Since assuming office, policymakers have articulated the desire to lift percapita income, improve social development indicators and harness the benefits of the demographic dividend by creating an environment in which businesses will thrive, invest and create jobs. Indeed, this approach is similar to the economic-development experience of East Asian economies whereby the path towards a nation's sustained prosperity lies in effectively mobilising both labour and non-labour resources. A reasonable initial goal would be to target lifting India's GDP to $10 trillion (and per capita income to about $7,500) from the current level of close to $2 trillion ($1,600). This goal should be achievable in about 15 years' time as long as real GDP growth and inflation average 8% and 4% respectively over this period.
We believe this path to sustained prosperity entails two broad sets of reforms. In the initial phase, the focus of policy measures needs to be sustaining 6.5-7% growth with moderate and stable inflation. Indeed, policymakers have been judiciously fixing the root causes for the slippage in GDP growth to 5%, effectively reversing the distortions in the productivity dynamic. First, Centre-plus-states' combined fiscal deficit, which has been painfully reduced from the peak of 9.9% in 2008-09 to an estimated 6.5% of GDP in 2014-15, will need to be further reduced to 5% of GDP. Second, the government needs to ensure that its policies do not intervene in the labour market to ensure that wage growth matches productivity growth. We believe high rural wage growth of about 1.8% during 2009-13 was a key factor behind the spike in inflation to 10% in that period.
Third, real interest rates need to be maintained in a positive territory to anchor inflation expectations and also to check the rise in property prices. Finally, ensuring a smooth functioning of the executive branch, faster implementation and increased transparency of government policies for investment approvals is needed to revive investment.
As the effects of the reforms that are currently being implemented begin to feed through to the economy in terms of improved productivity and macro stability, the economy will be on track to transition back to 6.5% GDP growth in the next 18 months. The goal of 8% sustainable growth needs a 15-year vision of medium-term reforms — some ofwhich are perceived to be politically sensitive.
The list of these measures is long, but the government should prioritise reforms in the areas of land, labour, tax, infrastructure and overall ease of doing business. Indeed, the recent decisions taken by policymakers suggest that they are determined to accelerate the pace of implementation in each of these areas.
101. What is the 'centrepiece of Narendra Modi government's social contract? Answer in the context of the passage.
e) Poverty alleviation and generation of job opportunity
102. What have been the aspirations of the policymakers since assuming office?
(A) To improve social development indicators
(B) To harness the benefits of the demographic dividend
(C) To lift percapita income
a)Only (A) and (B) b) Only (B) and (C) c)Only (A) and (C)
d)All(A),(B)and(C) e)None of these
103. What, according to the author, should be the economic goal of the present govt?
(A) Lift India's GDP to $10 trillion from the current level of approx $2 trillion.
(B) The set goal should be achievable in about 15 years' time.
(C) Inflation averages should be below 4%.
a) Only (A) and (B) b) Only (B) and (C) c) Only (A) and (C) d) Only (A)
e) All (A), (B) and (C)
104. What set of reforms are required for sustained prosperity?
a) To revive investment, the government should ensure smooth functioning of the executive branch, faster implementation and increased transparency of government policy.
b) The government needs to ensure that it does not intervene in the labour market
c) Centre and states' combined fiscal deficit needs to be further reduced to 5% of GDP.
d) Real interest rates need to be maintained in a positive territory to support inflation expectations.
e) All the above
105. Which of the following statements is/are not true in the context of the given passage?
(A) The Centre and states' combined fiscal deficit has been reduced to the estimated 6.5% of GDP in 2014-15.
(B) High rural wage growth of about 18% during 2009-13 was a key factor behind the rise in inflation to 10 per cent in that period.
(C) The goal of 8% sustainable growth needs a 15-year vision of medium-term reforms.
a) Only (A) b) Only (B) c) Only (C) d) All (A), (B) and (C)e) None of these
Directions (Q. 106-108): Choose the word/group of words which is MOST SIMILAR in meaning to the word/ group of words printed in bold as used in the passage.
a)questioned b) listened c) expressed d)asked e) misrepresented
a)open b) deceive c) ploy d) discard e) trap
a)excludes b) involves c) untangles d) supplies e) provokes
Directions (Q. 109-110): Choose the word/group of words which is MOST OPPOSITE in meaning of the word/ group of words printed in bold as used in the passage.
a)benefit b) affluence c) poverty d) plenty e) exorbitant
a)leave b) intercede c) divide d) part e) separate
Directions (Q. 111-11e): Read each sentence to find out whether there is any grammatical or idiomatic error in it. The error, if any, will be in one part of the sentence. The number of that part is the answer. If there is 'No error', the answer is e). (Ignore errors of punctuation, if any.)
111. a) The concept of creative society refers to / b) the phase of development of a society I c) in which large number of potential contradictions / d) become articulate and active. / e) No error
112. a) The rapidly expanding human population / b) have greatly modified the earth's ecosystem / c) to meet their increased requirements / d) of some of the goods and services. / e) No error
113. a) The great Acharyas have said that everything discovered / b) has a great goal; surrender yourself to that goal / c) and act towards it by drawing inspiration from that goal / d) where you will get a new column of energy. / e) No error
114. a) The previous decade has reversed the presumptions / b) about development; and more than anything else, / c) it has made it difficult to decide / d) what is in store room during the next decade. / e) No error
115. a) On hearing the news of the massacre ofJallianwalaBagh, / b)Udham Singh did not attend his school / c) but took a train to Amritsar / d) and visited the spot. / e) No error
Directions (Q. 116-12e): Read the passage carefully and answer the questions given below it. Certain words/ phrases have been given in bold to help you locate them while answering some of the questions.
Most analysts have wailed and moaned about India's weak economic performance in the last three years. But suddenly, data revisions by the Central Statistical Organisation suggest that the economy has done pretty well, growing as fast as 6.9% in 2013-14 — against the original estimate of just 5%.
Most analysts think the economy will fare better in 2014-15 than last year. The GDP data for the first two quarters — although based on the old definitions — does suggest acceleration. Going by the old data series, analysts expected GDP to rise from 4.9% last year to 5.5% this year. Assuming similar improvement in the new data for four quarters, growth will go up from 6.9% last year to perhaps 7.5% this year, well above the 7% benchmark of a tiger economy.
Optimists will cheer. But sceptics will say that revisions on paper can only produce paper tigers, not real ones. My immediate reaction is sceptical, though only time will tell. There are many indicators in an economy apart from GDP. When they all point in the same direction, they buttress one another's credibility. Right now, other indicators do not buttress the upward GDP revision that paints India as a tiger.
CNBC data show that for 664 companies that had that week declared their financial results for the third quarter, sales are up just 1.3% and net profits by just 3.4% on a year-on-year basis. On a quarter-on-quarter basis, sales are down 2.8% and net profits by 6.1%. These are disappointing figures, especially since falling commodity prices should have boosted demand and profit margins. No sign of a tiger here. In the boom years, tax collections soared by up to 30% per year. There's no sign of that currently. Overall tax collections have risen at just half the budgeted rate of 19% during April-November, and exciseduty collections— a critical measure of industrial buoyancy — are actually down 2.7%. That's truly dismal.
Booming bank credit is a typical sign of tigerish growth. But the growth of bank credit since the beginning of the financial year has been only 6.6%, against 9.7% in the corresponding period the previous year. Year-on-year credit growth is 10.7% against 14.5% a year earlier. Remember, in the tiger years of the 2000s, credit growth rose by up to 30% per year. The index of industrial production has long been criticised for sundry flaws, and has not been overhauled along with the national accounts. Still, it remains an important indicator, and currently looks pretty bad. For the first eight months of the current fiscal year (2014-1e), industrial production is up only 2.2%. Electricity is the brightest spot, up 10.7%, but mining is up only 2.5% and manufacturing by a pathetic 1.1%.
Capital goods production is up 4.9%, against double-digit growth in the palmy 2000s. Consumer durables, a good measure of consumer strength and confidence, are down by as much as 15.9%. Mind you, these figures area definite improvement on the more dismal performance the previous year. But they hardly inspire.
Exports have been a significant source of growth: merchandise exports grew at a compound rate of almost 20% in the boom years 2003-09. India's exports stagnated after 2011-12, along with the GDP slowdown. Export growth in the first half of 2014 suggested a revival, but the global economy slowed, so did our exports. They averaged only 4% growth during April-November. Global trade prospects keep getting bleaker: the IMF has reduced its projections once again.
To be sure, there are some positive trends too. The crash in oil and other commodity prices has slashed the current account deficit, which may be no more than 1.5% of GDP this year and even less next year. Cheap oil has also helped reduce fiscal strains and inflation. Indeed, inflation has fallen faster than the RBI's glide path, and wholesale price inflation is close to zero. Yet, these have not produced tigerish trends in industrial production, bank credit, exports or tax collections.
116. Which of the following statements regarding the index of industrial production is not true?
(A) The index of industrial production is still an important indicator.
(B) This index has not been overhauled along with the national accounts since long.
(C) For the first eight months of the fiscal year 201415, the industrial production is up only 4.9%.
a) Only (A) b) Only (B) c) Only (C) d) Only (A) and (B)
e) None of these
117. What is/are the assessment of the analysts about the current economic performance?
a) The economy will perform better in 2014-15 than last year.
b) The GDP data for the first two quarters does suggest acceleration.
c) Analysts expect GDP to rise from 4.9% last year to 5.5% this year.
d) Economic growth will go up from 6.9% last year to perhaps 7.5% this year.
e) All the above
118. Find the incorrect statement in the context of the given passage.
(A) Tigrish growth is the characteristic feature of booming bank credit.
(B) The least growth has been registered by electricity during the financial year 2014-15.
(C) In the tiger year of the 2000s, credit growth rose by up to 30% per year.
a) Only (A) b) Only (B) c)Only (C) d) Both (A) and (B)
e) Both (A) and (C)
119. What has been the impact of crash in oil and other commodity prices? Answer in the context of the passage.
a) The fiscal strains and inflation have reduced.
b) The current account deficit has been slashed.
c) This has led to tigerish trends in industrial production.
d) Only a) and b)
e) Only b) and c)
120. Find the correct statement(s) in the context of the given passage.
(A) In 2013-14, economic growth rate was just 5%.
(B) The actual economic growth rate was about 2% more than the estimated growth for the financial year 2013-14.
(C) Most analysts perceived that in the last three years there had been a weak economic performance.
a) Only (A) and (B) b) Only (B) and (C) c)Only (A) and (C) d) All (A),(B) and(C) e) None of these
Directions (Q. 121-125): Choose the word/group of words which is MOST SIMILAR in meaning to the word/ group of words printed in bold as used in the passage.
a)think b) laugh c) swift d)lament e) defy
a)support b)criticise c) weaken d)discourage e) obstruct
a)black b) doleful c) golden d) somber e) bad
Directions (Q. 124-12e): Choose the word/group of words which is MOST OPPOSITE in meaning of the word/ group of words printed in bold as used in the passage.
a)waxed b) grew c) surged d) enhanced e) decreased
a)gloomy b)favourable c) depressing d) murky e) horrible
101.d 102.d 103.a 104.e 105.e
106.c 107.e 108.b 109.c 110.a
111.c; insert ‘a’ before ‘large number’
112.b; replace ‘have’ with ‘has’
113.d; replace ‘where’ with ‘whereby’
114.d; delete ‘room’
115. a; replace ‘of’ with ‘at’
116.c 117.e 118.d 119.d 120.b
121.d 122.a 123.c 124.e 125.b
OBJECTIVE ENGLISH ---- SBI PO/IBPS PO Reviewed by sambasivan srinivasan on 8:23:00 PM Rating: