Bank Quiz : English Language | 12 - 08 - 17

The Centre’s plan to relieve the RBI of public debt management in about two years is welcome. When the RBI manages the government’s debt, it leads to a conflict with its role as monetary authority working to contain inflation and ensure financial stability. Why burden the RBI with

twin incentives pulling in opposite directions such as would arise when, say, rising _(1)_demands an increase in policy rates but the government wants takers for its debt offered at a low rate? Hiving off debt management will _(2)_the central bank to focus on monetary policy of setting short-term interest rates.

Around the world, several central banks have shed managing the public debt, and the government’s plan is in sync with best practices. As an interim measure, the finance ministry has _(3)_a public debt management cell to work with the RBI in finalising market borrowings and managing its_(4)_. This makes sense to ensure a smooth transition in two years.

Existing functionaries in RBI should be roped into the public debt _(5)_agency as they have the domain expertise._(6)_, this doesn’t amount to a radical departure from the present practice. This is because, in an interdependent world where capital moves across borders, the notion that the RBI and the government can function in silos is flawed. The financial crisis has _(7)_that the management of government debt, regulation of banks and monetary policy are all interlinked. As a custodian of foreign exchange reserves, the RBI may have to sell dollars to buy rupees, sucking out liquidity. If the government chooses that precise moment to issue bonds, sucking out even more liquidity, it might upset the RBI’s liquidity management plans. Such interventions _(8)_ be managed _(9)_only when the government and the RBI are in sync with_(10)_.

Q.1- (1) population (2) inflation (3) customer (4) celerity (5) market

Q.2- (1) order (2) thought (3) managing (4) allow (5) amalgamation

Q.3- (1) create (2) set up (3) act upon (4) forage (5) looked for

Q.4- (1) draconian (2) facilities (3) liabilities (4) circumstance (5) stability

Q.5- (1) bovine (2) inquiry (3) arrangement (4) facet (5) management

Q.6- (1) still (2) whereas (3) in fact (4) However (5) although

Q.7- (1) vision (2) announced (3) misogamist(4) penetrate (5) shown

Q,8. . (1) can (2) have (3) without(4) had (5) ought

Q.9- (1) savagely (2) carefully (3) seldom(4) regularly (5) embellish

Q.10. each other (2) together (3) arrange(4) one other (5) another

1- ANSWER – (2)

For Other Option – celerity- speedily

2- ANSWER- (4)

For other option- amalgamation- combination

3- ANSWER- (2)

For other options- act upon- move, forage-search

4- ANSWER – (3)

For Other Option – draconian- cruel

5- ANSWER – (5)

For Other Option – bovine- slow and stupid

6- ANSWER – (4)

7- ANSWER- (5)

For other options- misogamist- woman hater, penetrate- get through physically

8- ANSWER- (1)

9- ANSWER – (2)

For Other Options – savagely- wildly, embellish- to decorate

10- ANSWER- (1)