Directions : Read the passage carefully and answer the questions given below it. Certain words / phrases have been given in colored to help you locate them while answering some of the questions

The global economy has been stuck in a low-growth environment since 2012, largely as a result of the 3D challenge: Debt, Demographics and Disinflation. Indeed, while the developed market (DM) economies have been grappling with these issues for some time, a number of emerging market (EM) economies have also joined the 3D club. Specifically within Asia, except for Japan (which accounts for 68% of EM), of the 10 top economics in the region, seven have debt-to-GDP close to 200% or above; six are facing a rising age dependency ratio (ageing population is growing faster than working-age population) and eight have GDP deflator growth below 2%. These challenges have led to a slowdown in global growth.

We estimate that the global economy will grow by 3 % this year, which will mark the fifth consecutive year that global growth will be below the 30- year average of 3.6%. Moreover, a large number of EM economies are facing both the cyclical challenge of wide output gaps and the structural challenge of decelerating potential growth at the same time. Against this backdrop, India stands out as one of the few large economies that do not face these issues. However, strong structural fundamentals are clearly necessary but not sufficient in ensuring strong growth outcomes.

The deep cyclical slowdown that occurred from 2011 to early 2014 was due to a systematic distortion of the productivity dynamics arising from poor policy choices in the post-credit crisis environment. We attribute it to the four key macro policies: high revenue deficit, high rural wage growth with labour market policy intervention, persistent negative real interest rates and breakdown in investment approval process post emergence of corruption scandals. Over the last three years, there has been a concerted policy effort to reverse the productivity distortion and the results have been reflected in macro stability indicators such as inflation, current account and financial stability returning to within the comfort zone. This marks the first stage of recovery from a typical EM down cycle – where improvements in macro stability reduce the macro risk premium.

Despite these improvements, the transition to Stage 2 – a path of growth recovery – has taken longer than expected, as the continued weakness in the global economy weighed on exports and manufacturing business sentiment, while the recovery in the domestic market proceeded at a very gradual pace from the deep cyclical slowdown of the preceding years. The initial pick-up in growth was driven by public capex as the government increased capex spending largely through off-budget sources. The government also took measures to improve the investment climate through streamlining of approval processes and creating an overall conducive, business-friendly environment. This led to a significant acceleration in foreign investment flows with FDI flows rising to an all-time high.

1. There occurred a deep cyclical showdown between 2011 and early 2014. What was / were the reasons thereof?
1) High revenue deficit
2) Persistent negative real interest rate
3) Breakdown in investment approval process as a result of corruption scandals
4) High rural wage growth with labour market policy intervention
5) All the above
Answer :

2. Which of the following indicators has been used to measure the effects of the steps taken to reverse the productivity distortion?
1) Inflation
2) Foreign investment flow
3) Current account and financial stability
4) Only (1) and (3)
5) All (1), (2) and (3)
Answer :

3. What is /are the major challenge(s) that have stuck the growth of global economy for the past four years?
(A) Disinflation, Demographics and Debt
(B) Corruption, Oil Price hike, Stagflation
(C) Inflation, FDI, Climate change
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) Only (A)
5) Only (B)
Answer :

4. Which of the following statements with regard to the economy of Asian countries is / are not true?
1) Of the 10 top economies in the Asian region, 7 have debt-toGDP close to 200 per cent or above
2) Japan is the only country in the Asian region which has the least number of emerging markets.
3) Out of the top ten economies in Asian, six are facing a rinsing age dependency ratio.
4) Both (1) and (3)
5) None of the above
Answer :

5. What is / are the challenge(s) that a large number of emerging economies are facing as of now?
Answer in the context of the passage.
(A) Cyclical challenge of wide output gaps.
(B) Systematic distortion of the productivity dynamics
(C) Structural challenges of decelerating potential growth
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) All (A), (B) and (C)
5) Only (B)
Answer :

6. What steps did the government take to improve the investment climate?
(A) It allowed tax relief to new investors.
(B) It streamlined the approval process.
(C) It created an overall conductive, business-friendly environment.
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) All (A), (B) and (C)
5) Only (C)
Answer :

Directions : Choose the word which is MOST SIMILAR in meaning to the word printed in BOLD as used in the passage

1) Entertaining
2) Struggling
3) Relishing
4) Hating
5) Making
Answer :

1) Scenario
2) Problem
3) System
4) Rule
5) View
Answer :

Directions : Choose the word which is MOST OPPOSITE in meaning to the word printed in BOLD as used in the passage.

1) Productive
2) Useful
3) Invigorating
4) Adverse
5) Contributory
Answer :

1) Declining
2) Waning
3) Growing
4) Flagging
5) Weakening
Answer :

Directions : Rearrange the following seven sentences (A), (B), (C), (D), (E), (F) and (G) in the proper sequence to form a meaningful paragraph and then answer the questions given below.

(A) Also, every board is required to have an Audit Committee, a Nomination and Remuneration Committee and a Corporate Social Responsibility Committee, all of which are required to include independent directors

(B) That means there is a minimum 20 board meetings for a director sitting on five boards.

(C) Each of these committees is also required to hold meetings.

(D) The workload and responsibility of independent directors is significantly large.

(E) In addition, independent directors are required to be on various committees of the board.

(F) Because every board of a listed company is required to meet at least four times every financial year.

(G) The audit committee, for instance, is required to meet four times in a financial year.

11. Which of the following should be the FIRST sentence after rearrangement?
1) A
2) B
3) C
4) D
5) E
Answer :

12. Which of the following should be the SECOND sentence after rearrangement?
1) F
2) A
3) B
4) G
5) D
Answer :

13. Which of the following should be the THIRD sentence after rearrangement?
1) E
2) A
3) B
4) C
5) D
Answer :

14. Which of the following should be the FOURTH sentence after rearrangement?
1) B
2) C
3) D
4) A
5) E
Answer :

15. Which of the following should be the LAST (SEVENTH) sentence after rearrangement?
1) D
2) G
3) F
4) E
5) B
Answer :

Directions  : In the following passage, there are blanks each of which has been numbered. For each blank five words have been suggested, one of which fits the blank appropriately. Find out the appropriate word in each case

Sebi’s decision to tighten rules for participatory notes is acceptable in the large objective of maintaining transparency on the _____ (16) of those investing in the markets. Sure, increased disclosure requirements, bringing P-Note holders under the ______ (17) of Indian know-yourcustomer and anti-money-laundering rules and ______ (18) the transfer of P-Notes among foreign investors will raise transaction costs, and complicate compliance for issuers. Investors, whose only interest is to avoid the ______ (19) of registering themselves as foreign portfolio investors, rather than to hide their identity, should not find the new norms too_______ (20). The rest can, well, lump it

16. 1) identity          2) character         3) coherence      4) existence         5) singularity
Answer :

17. 1) influence       2) space               3) ambit             4) extent              5) rule
Answer :

18. 1) freeing           2) expanding       3) releasing        4) enlarging        5) restricting
Answer :

19. 1) agreement      2) hassle              3) norms            4) formula          5) procedure
Answer : 

20. 1) severe            2) demanding      3) objective        4) onerous          5) acceptable
Answer : 

English Passages with Questions

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