SBI Clerk

SBI POs English Language Passage Quiz

Directions (Q. No: 1-10: Read the following passage carefully and answer the given questions. Certain words are given in bold to help you to locate them while answering some of the questions.
Gross Domestic Saving (GOS) plays a vital role in the economic growth of a country as it facilitates to provide requisite financial resources to undertake various developmental and welfare programmes. A high level of savings helps the economy progress on a continuous growth path as the savings are the source for investment. GDS is one of the most important economic indicators to measure financial regulation and soundness of the country. Absence of required savings rate may lead to external dependence, which may jeopardise the interests of the Nation. Savings habit is an in-built culture of the Indian system and it has been growing consistently from 10% in 1950 to 33.70% in 2010, which is one of the highest globally. It is interesting to note that while savings rate is on the increase, marginal decline is observed under household sector i e. 72% to 70% during 1950 to 2010. Corporate sector witnessed increase from 10% to 24% while the share of public sector has come down to 6% from 18% during the said period.
Despite the fact that the household savings have been gradually moving from physical assets to financial assets over the years, 49.79% of household savings are still wrapped in physical assets. Hence desired capital formation has not been taking place, which is a matter of serious concern. Unlocking physical assets is the need of the hour as substantial scarce financial resources are blocked in unproductive assets such as gold and real estate at a time when the country is in dire need of funds to channelize into productive sectors to achieve desired GDP and economic growth. Normally, the public keeps a portion of its savings in the form of currency to meet its day-to-day emergency requirements and the balance of savings will be held in the forms of investments. The last decade of increased adoption of debit and credit cards and electronic payments expected significant shift in currency holdings. Contrary to the expectations, the currency holding with public has increased from 10.60% in 1990 to 13.30% in 2011 which calls for a detailed debate. The major reasons for high currency holdings may be on account of increased economic activity with limited access to banking 5.66 lakh unbanked villages cow it hoarding of unaccounted money in the form of cash to circumvent tax laws.
Historically, bank deposits seemed to be the preferred choice as these have inbuilt safety, security and liquidity features. Traditionally, the Household sector has been playing a leading role in the landscape of bank deposits followed by Corporate and Government sectors, However, Household sector lost a share of 13.60% while Corporate and Government sectors gained by 8.60% and 6.70% respectively during the last two decades. This calls for in depth analysis as it is an indication of skewed distribution of income across various segments.
1. Which of the following can be the most suitable title for the passage?
1) Role of Banks in India
2) Comparative Analysis of Savings in the Corporate and Government Sectors
3) The Characteristics of Savings in India
4) The Scope of Banking in India
5) How India is viewed Economically Around the World
2. Which of the following is True about Gross Domestic Savings (GDS) in the context of the passage?
1) One of the sources of funds for adoption of development and welfare measures by a country is its GDS.
2) One of the measures of assessing a country’s financial stability is its rate of GDS.
3) A high rate of GDS improves a country’s investment prowess.
4) The absence of a healthy rate of GDS may lead to a country being financially dependent on other countries.
5) All the given options are true
3. Which of the following is Not True in the context of the passage?
1) The data related to the investment in bank deposits by different sectors point to an uneven distribution of income across these sectors.
2) At present the household sector has the least share of bank deposits.
3) People prefer investing in bank deposits as these seem to have significant benefits over other schemes of savings.
4) The share of Government and Corporate Sectors in bank deposits has increased in the last two decades.
5) All the given options are true
4. Which of the following is True according to the passage?
(A) The savings rate of India is one of the highest worldwide
(B) All the three sectors of India, i e. corporate, government and household have shown an increase in savings rate from 1950 to 2010.
(C) The engagement of a major chunk of household savings in physical assets is proving to be detrimental to capital formation in the country.
1) Only (A)
2) Only (C)
3) Only (B) and (C)
4) Only (A) and (C)
5) All (A), (B) and (C)
5. According to the passage, which of the following to the desirable ?
(A) Greater holding of assets like gold.
(B) Increased currency holding by the public.
(C) Increased investment in financial assets.
2) Only (B) and (C)
1) Only (A) & (C)
3) All the three (A), (B) and (C)
5) Only (C)
4) Only (A)
6. Choose the word which is opposite in meaning to the word given in bold as used in the passage Unlocking ?
1) investing in
2) complicating
3) fastening up
4) holding
5) freeing
7. According to the passage, which of the following can be said about currency holdings?
(A) Accumulation of illegal wealth and avoiding payment of tax are also responsible for increased currency holdings.
(B) The advent of debit cards and credit cards has led to a significant decrease in currency holdings.
(C) The increase in currency holdings can also be partially attributed to the fact that many people still do not have access to banking services.
1) Only (C)
2) Only (A)
3) Only (A) and (C)
4) All the three (A), (B) and (C)
5) Only (B) and (C)
8. Choose the word which is opposite in meaning to the word given in bold as used in the passage
1) passively
2) intermittently
3) reflexively
4) gradually
5) routinely
9. Choose the word which is most nearly the same in meaning to the word given in bold as used in the passage.
1) gamble
2) endanger
3) reveal
5) tempt
4) expose
10. Choose the word which is most nearly the same in meaning to the word given in bold as used in the passage.
1) ominous
2) calamitous
3) poor
4) ridiculous
5) great

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