Test of English Language for Bank Exams

Directions (Q.No.1 - 10): Read the passage carefully and answer the questions given below it. Certain words / phrases have been given in color to help you locate them while answering some of the questions.

Mutual funds are professionally managed and well-regulated. These are two solid reasons why mutual funds can be an important wealth creation tool. As unit holders in the funds, we are the real owners of the assets but the Trust is the nominal owner. Such a structure ensures that the assets (our assets) remain safe even if the asset management company (AMC), which does the actual management of funds, goes bankrupt. Even bankruptcy is almost impossible because the AMC is not allowed to do any other business. For example it cannot get into banking or life insurance business. It can only do fund management; it can run a PMS (Portfolio Management Services) but not anything else. The trustees look at the holistic picture of the fund house, make sure that the registrar, auditor, distributors are all doing their jobs and that the complaints are well-handled.

The trustees have to ensure that compliance is well taken care of, the custodian documentation is good and that there is a good internal control in place. They have to ensure that the funds do what they are supposed to do - so a liquid fund cannot buy a security maturing in 20 years, or load an income fund with equities. In case of a fraud, the trustee can be  sued and he will have to pay the fine from his personal resources. The fund management is done by the asset management company and this company has a board with independent directors as well as interested directors. The board handles the day to-day administration of the company through a managing director. He is responsible for the compliance - to all the rules of the business. He has to ensure that there is no conflict of interest between the employees and the unit holders. He has to ensure that the vendors appointed are all compliant; the Registrar (for the administration of the schemes) is SEBI - compliant; the distribution is streamlined; the complaints are taken care of; etc Mutual funds come out with an offer document for schemes which states what the funds will do, who are its trustees, auditors, directors, the potential composition of portfolio, etc. This document is vetted by the compliance officer, circulated among the board, signed by the managing director (for and on behalf of the board), approved by the trustees and accepted by the regulator. The compliance officer has to ensure operational-level accuracy and tell the Board that all the operational things are in place. Then the Board of Directors and the Trustees approve it.

1. The trustees are supposed to perform multiple functions. Which of the following is not one of them?
1) To ensure that the funds do what they are supposed to do
2) To make sure that the registrar, auditor, distributors all are doing their jobs well
3) To ensure that compliance is well taken care of
4) To manage payment of fine from different sources in case a fraud is detected
5) All the above are the functions of the trustees.
Answer :   4

2. Who among the following handles the everyday administration of the AMC? Answer in the context of the passage.
1) Auditor of the company
2) Registrar of the company
3) Managing director of the board of the company
4) A committee comprising unit holders and the managing director
5) Other than those given as options
Answer :   3

3. Why do our funds remain safe even if the asset management company goes bust?
1) Because the asset management company has no right to touch public fund
2) Because the asset management company cannot do any business other than fund management
3) Because the fund management trust is the nominal owner of the assets.
4) Only (1) and (2)
5) Only (2) and (3)
Answer :   5

4. Find the incorrect statement on the basis of the given passage.
(A) Only trustees can allow a liquid fund buy a security maturing in 20 years or so.
(B) In respect of mutual funds, the unit holders are the real owners of the assets.
(C) There is almost nil possibility of bankruptcy when asset are managed by AMC.
1) Only (A)
2) Only (B)
3) Only (C)
4) Only (A) and (B)
5) Only (A) and (C)
Answer :   1

5. What is/ are the purpose(s) of bringing out the offer document of mutual fund schemes?
1) To ensure compliance of govt guidelines
2) To win the trust of investors / stakeholders
3) To make the public aware of the different aspects of the scheme
4) All (1), (2) and (3)
5) Only (2) and (3)
Answer :   5

6. What is the meaning of the phrase "conflict of interest" as used in the passage?
1) Personal vengeance
2) A conflict between the private interests and the official responsibilities of a person in position of trust
3) Intention of the employee to harm the unit holders
4) No better relationship between two groups of persons
5) Other than those given as options
Answer :   2

Directions :  Choose the word which is MOST SIMILAR in meaning to the word printed in bold as used in the passage.
7. HOLISTIC
1) Abridged
2) Full
3) Limited
4) Incomplete
5) Part
Answer :   2

8. SUED
1) Exonerated
2) Requested
3) Accused
4) Excused
5) Absolved
Answer :   3

Choose the word which is MOST OPPOSITE in meaning of the word printed in bold as used in the passage.

9. COMPLIANCE
1) Agreement
2) Conformity
3) Defiance
4) Consent
5) Acquiescence
Answer :   3

10. VETTED
1) Overlooked
2) Analysed
3) Reviewed
4) Perused
5) Probed
Answer :   1

Directions : 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 (5). (Ignore errors of punctuation, if any.)

11. With the United Kingdom declining India's request (1) / to deport Vijay Mallya, the Enforcement Directorate has requested Interpol (2) / to issue a Red Corner Notice against him (3) / in connection with his money laundering probe. (4) / No error (5)
Answer :   4

12. Three students aged between five to 15 years (1) / were washed away in flash floods (2)/ triggered by cloud burst at (3)/ Kathari Chakwar in Jammu. (4)/ No error (5)
Answer :   1

13. The family members of Aditya, who was killed (1) / in the Gaya road rage incident, (2) / have demanded a CBI inquiry (3) / of his murder. (4) / No error (5)
Answer :   4

14. Salahuddin was found guilty of genocide, arson, (1) / persecuting people on religious (2) / and political grounds and forced Hindus (3) / to convert to Islam. (4) / No error (5)
Answer :   3

15. Had the unusual experiment of the coming together (1) / of the left and the congress been successful(2) / in WB, it could have become the centre piece (3) / of an anti-Modi platform. (4) / No error (5)
Answer :   5

Directions : Each question below has two blanks, each blank indicating that something has been omitted. Choose the set of words for each blank that best fits the meaning of the sentence as a whole
16. In 2009, Prime Minister Sheikh Hasina's government ______ on its election promise to set up an International Crime Tribunal to try those ______ of genocide during the 1971 war.
1) conveyed, suspicious
2) delivered, suspected
3) expressed, uncertain
4) forwarded, imagined
5) deposited, doubtful
Answer :   2

17. During the British Raj, engineer Sir Arthur Cotton _____ to link the Ganga and the Cauvery to _____ navigation.
1) pursued, block
2) inquired, simplify
3) explored, check
4) quested, detain
5) sought, facilitate
Answer :   5

18. The project has drawn ____ for being put up in parts, and not in its _____ for green clearances.
1) flak, entirety
2) criticism, partiality
3) disapproval, section
4) complement, certainty
5) praise, fraction
Answer :   1

19. Merit is much talked about in our society to criticise and _____ reservation but merit ____ should not be under any illusion.
1) obstruct, dealer
2) oppose, mongers
3) contradict, seeker
4) argue, peddler
5) confront, merchant
Answer :   2

20. ______ five days to go for Tamil Nadu polls, passengers from different ______ of life travelling on Kovai Express shared their political views.
1) For, parts
2) Still, areas
3) In, regions
4) With, walks
5) Against, locations
Answer :   4

21. Parents need to encourage their children to look ____ the traditional fields so that a passion can be ____ into a career.
1) beyond, developed
2) outside, moved
3) along, blossom
4) besides, pushed
5) within, matured
Answer :   1

22. In an ___ to save farmers from the vagaries of monsoon, the government will soon ___ villages with the nearest sources of water.
1) event, join
2) efforts, link
3) endeavour, assign
4) attack, allot
5) attempt, connect
Answer :   5

23. _____ green and black tea are obtained from the same plant, there are quite a few significant differences ______ them.
1) Although, attaching
2) Since, among
3) However, in
4) Though, between
5) Because, across
Answer :   4

24. Sports leagues have ___ sports like kabaddi, football and tennis aleg-up but that may not be _____ to transform Indian sport.
1) sent, sufficient
2) thrown, ample
3) given, enough
4) set, much
5) shown, adequate
Answer :   3

25. Time and again, worried analysts have __ of trouble, as debt-laden and spendthrift consumers are ___ to rein in their spending.
1) thought, eager
2) alarmed, force
3) wondered, armed
4) cautioning, likely
5) warned, unwilling
Answer :   5