Q.1-10. Read the following passage carefully and answer the questions given below it. Certain words have been printed in bold to help you locate them while answering some questions.
However, what is less clear is the purpose for which many of these loans are being put to. The Reserve Bank of India recently initiated an investigation into the apparent diversion of agricultural loans for unintended purposes. It would appear that farmers' existing debts to money-lenders, weak supervision of credit utilization and the categorization of gold loans as agricultural loans are creating significant grey areas and avenues for loan amounts to be used for purposes other than farming. At certain points of the cropping cycle farmers need large amounts of money and they turn to money lenders, who charge high rates of interest and often insist on their loans-being re-paid first — which forces farmers to divert a part of the subsidized bank loans to repay them. Some farmers put the amounts in fixed deposit accounts to earn higher interest than what they pay. Most farmers do not earn enough to meet their needs. Including consumption expenditure, and so these loans serve as an auxiliary source of income. The government needs to recognize the fact that the system of interest subvention will increasingly finance consumption rather than farming, and take one of two steps. It could instruct banks to step up scrutiny on the use of loan it being put to. Or it could rethink the manner in which it wants to subsidies-farmers. Implementing direct transfers to bank accounts and investing in research and development to bolster crop yields should serve the same purpose that the low-interest loans currently serve. This step will have the added advantage of potentially improving the plight of farmers. The soft loans are a good idea that needs to be managed and supervised well in order to ensure that the intended outcomes are ensured, and that they help address actual distress in the field.
Q.1. The basic problem for which the loan segment is creating problem is-
(1) The gold loans turning out to be agricultural loans are a helping hand in the economy.
(2) The gold loans assumed to be agricultural loans are evolving new assistance in the economy.
(3) The gold loans inferred as agricultural loan are not readily conforming to a set of rules.
(4) The agricultural loans and the gold loans are running hand is hand.
(5) The agricultural loans in respect of gold loans are turning out to be a boon to the farmers.
Q.2. The adjusted source of income for farmers is-
(1) The loan granted by the bank for agriculture.
(2) The loan amount deposited in the bank.
(3) The loan amount granted by the bank but not withdrawn to earn the interest.
(4) The loan received by the moneylender for agricultural purpose.
(5) The agricultural loan which concept into gold loan as per the requirement of the farmer.
Q.3. What is most significant in reference to farmers?
(1) They have unintended purposes in respect of loans
(2) Farmers need money for crops around the clock and that increase their debt.
(3) Some farmers utilize the loan as primary source of income rather than spending it on crops.
(4) The government is trying its best to finance consumption and farming.
(5) The banking sector scrutinizes the need of the farmers and helps them accordingly.
Q.4. Which of the following is not a measure of RBI?
(1) It is initiating a drive to assess the use of loans provided to farmers.
(2) It is trying to help the farmers to overcome their financial need.
(3) The government is taking measures to provide the farmers with appropriate help.
(4) The Government in alliance with RBI is converting loans to gold loan.
(5) All except 2
Q.5. How do bank loans serve as secondary assistance to farmers?
(1) They assist in defining the capability of the farmers.
(2) They help the farmer in utilising the farming needs.
(3) They assist the farmers in meeting their day today needs.
(4) The farmers with eligible income are able to manage income as interest earned from bank.
(5) They attain proper credibility in respect to banking sector.
Q.6. Which of the following best describes the meaning of the phrase “Meet their needs”
(1) Meet the requirements
(2) Meet the necessities
(3) Meet farming requirements
(4) Meet debt requirements
(5) No clear from the passage
Q.7-8 Choose the word most SIMILAR in meaning to the word printed in bold, as used in the passage.
Q.7. Plight
(1) Solution (2) Boon (3) Trouble (4) Bilk (5) Smug
Q.8. Auxiliary
(1) Supplementary (2) Assist (3) Tout (4) Necessary (5) Important
Q.9-10. Choose the word which is most nearly the OPPOSITE in meaning as the word printed in bold as used in the passage.
Q.9. Distress
(1) Euphoria (2) Stew (3) Twinge (4) Prop (5) Torment
Q.10. Bolster
(1) Bulwark (2) Undermine (3) Buttress (4) Buoy (5) Reinforce
Answers
Q.1.(3)
Q.2.(1)
Q.3.(3)
Q.4.(3)
Q.5.(3)
Q.6.(2)
Q.7.(3) trouble
For other options:
Bilk (v)- to cheat
Smug (adj) – oily, buttery
Q.8. (1) supplementary
For other options:
Tout (V) – to show off
Q.9. (1) euphoria
For other options:
Twinge (N) – sharp pain
Torment (N) - severe mental distress
Q.10.(2) undermine
For other options:
Bulwark (N) - fortification, support
Buoy (N) - floating device
.jpg)