Dear Readers,
Mahendras has started special quizzes for SBI Clerk examination so that you can practice more and more to crack the examination. This SBI Clerk special quiz series will mold your preparations in the right direction and the regular practice of these quizzes will be really very helpful in scoring good marks in the Examination. Here we are providing you important question of English Language for SBI Clerk 2020 Exam.
Read the following passage carefully and answer the questions given below it.
Is the Indian financial system ready to shift from a bank-led model to a market-led model? While the answer to this is still elusive, the Reserve Bank of India’s (RBI) latest Financial Stability Report (FSR) flags off this question. In a discussion on banks versus capital markets for financing the real sector, the report states that the Indian bond market is not deep enough to complement the banking sector in financing the real economy.
“Amidst sluggish bank credit growth, capital markets do seem to be supporting the needs of the commercial sector. However, the increasing use of short term debt instruments and the private placement route (as against long term public issuance of debt securities) indicate that the debt markets have to go a long way before they can effectively supplement bank credit and share risks.”
The call for more reliance on capital markets than banks for fund-raising is in the wake of an unprecedented rise in the bad loan stock of banks that has made lenders focus all their efforts towards resolution rather than find worthy candidates for fresh lending. Faced with eroding capital, many lenders are also not able to meet the credit demand of companies. The RBI had floated a discussion paper that explored the concept of pushing large borrowers to raise funds from capital markets rather than rely mainly on banks.
The central bank had highlighted the risk of concentration with banks having high exposure to large conglomerates. The FSR too noted the concentration risk. The top 100 large borrowers account for nearly 16% of all banks’ loan book. Bad loans from this segment accounted for 22% of the total stock of bad assets. In contrast, given the variety of players in markets, the risk could get distributed. Companies have been able to raise funds through the bond market at a cheaper rate than bank credit.
Fund-raising by companies from capital markets surpassed that of bank credit offtake, according to the FSR. In fiscal, fund-raising through non-bank sources shows a sharp fall while bank credit rose. Among non-bank sources, fund-raising from bond issuances has been rising steadily over the past two years. Companies borrowed Rs.4.6 trillion through private placement of bonds in fiscal, a 15% rise from a year ago. Meanwhile, bank credit growth slumped to 8.8% for fiscal, data from the RBI showed.
Q-1 Which of the following statements is/ are NOT TRUE in the context of the passage?
(A) The debt markets need to go a long way before they become able to share risks and supplement bank credit.
(B) There is a lack of depth in the Indian bond market and hence it is of minimal help to the banking sector in financing the real economy.
(C) A discussion paper had been floated by the RBI that elucidated an idea of raising funds from banks rather than from capital markets.
01. Only A
02. Only B
03. Only C
04. Both A and B
05. Both B and C
Q-2 As per the passage, what are the benefits of raising funds from capital market than banks?
01. There is a less risk of concentration
02. The risks get distributed
03. It is cheaper as compared to banks.
04. The procedure to raise money through capital market is simpler than banks
05. All except 4
Q-3 As per your reading, how can it be said that there is a long way still left to be covered by debt markets so as to ably share risks and supplement bank credit?
01. The usage of short term debt instruments and the private placement route (as against long term public issuance of debt securities) has increased.
02. Amidst sluggish capital market growth, banks do seem to be supporting the needs of the capital markets.
03. Through the increasing use of long term public issuance and the private placement route (as against use of short term debt instruments)
04. Both 1 and 2
05. Both 2 and 3
Q-4 Which of the following statements is/ are TRUE in the context to the passage?
(A) According to the FSR, the fund-raising by companies from capital markets surpassed that of bank credit offtake.
(B) The fund-raising through non-bank sources has noted a steep decline fall while bank credit rose.
(C) Companies borrowed Rs.4.6 trillion through private placement of bonds in fiscal 2016, a 15% rise from a year ago.
(D) The RBI’s statistics revealed that the credit growth of banks has flourished by leaps and bounds.
01. Both A and B
02. Both C and D
03. All except D
04. All except B
05. All of the above
Q-5 What could be the appropriate Title for the above passage?
01. RBI and its policies
02. Should India shift to market-led funding?
03. Capital marketing a boon
04. Pros and cons of capital market and bank credit
05. Types of debt instruments
Rearrange the following sentences (A), (B), (C), (D), (E) and (F) in the proper sequence to form a meaningful paragraph, then answer the questions given below them.
(A) Here’s a rundown of some useful Google gems that
(B) But those apps are just a hint of what this Internet behemoth offers
(C) Gmail, Google maps, and Blogger are used widely.
(D) By now, most know that Google is about far more than search.
(E) Under the hood of its famous search engine.
(F) You may not know about, but probably should.
Q6 Which is the FIRST sentence after the rearrangement?
01. A
02. B
03. C
04. D
05. E
Q7 Which is the FIFTH sentence after the rearrangement?
01. A
02. B
03. F
04. D
05. E
Q8 Which is the LAST sentence after the rearrangement?
01. A
02. F
03. B
04. C
05. D
Q9 Which is the SECOND sentence after the rearrangement?
01. A
02. B
03. C
04. D
05. E
Q10 Which is the THIRD sentence after the rearrangement?
01. A
02. B
03. C
04. D
05. E
Solution:
1. (3) The answer lies at the end of the second paragraph.
2. (5) The passage, procedure to raise funds is nowhere discussed. Rest benefits are discussed.
3. (1) As per the passage, only statement 1 indicates that the debt markets have to go a long way before they can effectively supplement bank credit and share risks.
4. (3) The answer lies at the end of the passage.
5. (2) After reading the whole passage, the answer choice can be understood.
6. (4) The correct sequence is DCBEAF. The passage discusses Google and its apps.
7. (1)
8. (2)
9. (3)
10. (2)
