Dear Readers,
As SBI has released the much-awaited vacancies for the post of Junior Assistants (Clerk), we have launched subject-wise quizzes for the exam. It will include quizzes of all the subjects- Quantitative Aptitude, English, Reasoning and Computer. All these quizzes will be strictly based on the latest pattern of SBI Clerk exam and will be beneficial for your preparations. So, keep following the quizzes which will provide you a set of 10 questions daily.
Here, we are providing you important questions of English Language for SBI Clerk 2019 exam.
Directions (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.
Can policy actions by themselves reduce the demand for gold in India? The craving for gold, both as jewellery as well as an investment option, has reached such dimensions that the government and the Reserve Bank of India (RBI) are working in tandem to moderate the domestic demand. The point has been made several times before, including by the Finance Minister that the demand for gold has been such that the macro economy has been adversely impacted. The widening of the trade deficit and with it the current account deficit (CAD) is one obvious fall-out. Recently, the CAD seems spinning out of control to touch (5)2 per cent of gross domestic product (GDP) during the second quarter (July-September of 2012-13). Gold and petroleum imports have been behind the high trade imbalance. Both have remained inelastic. Policy-makers have had very limited success in moderating the imports of both.
Moderation of gold imports is necessary for the sake of external sector’s stability. One promising remedy would be financialisation of gold, both the imported component as well as the domestic stock. Banks and institutions need to introduce attractive savings packages based on gold. Simultaneously, alternative avenues for investment should be made to provide a real rate of return that is higher than what obtains now. Only then can domestic consumers be weaned away, at least partially, from their craving for gold.
Simultaneously, there is a need to monetise the domestic stock of gold. Gold loans are already popular. There is a need to refashion them to safeguard the interests of consumers as well as banks that disburse them directly or through refinancing of NBFCs. Banks can consider accepting gold as collateral for their regular loans.
An opposite view is that since the easy availability of gold loans is a principal factor behind the increased demand for gold, policy measures must aim at reining in such loans. Given the certain appreciation of gold, it pays for even the average person to pledge his or her gold to buy more gold and repeat the cycle. A decent return of around 15 per cent is assured, say experts. That, of course, is an unproductive use of gold.
Ultimately, it is a question also of breaking the strong emotional and cultural links that owning gold has in this country. Long before this current craze, in States such as Andhra Pradesh, agricultural gold loans have been extremely popular. In times of crop failures or agrarian distress, gold loans were taken to tide over the crisis. Gold in the hands of individual households might not be large but they came in handy during difficult times. By no stretch of imagination can this be considered speculative demand for gold. It would be good, therefore, if policy-makers recognise the different facets of the current gold craze. From a macro-economic point of view, there is really no permanent solution, except by winning the battle over inflation, and, equally importantly, convincing ordinary people that their investments in conventional bank deposits as well as in those backed by gold yield a real return.
Q.1 Why are the government and the Reserve Bank of India (RBI) making joint efforts?
(1) To form new policy on gold consumption
(2) To bring down the current demand of gold
(3) To find measures to control speculative demand
(4) To know views of people on their prospective gold buying
(5) Not mentioned in the passage
Q.2 Which of the following are ‘savings packages based on gold’ called ?
(1) Avenues for investment
(2) Agricultural gold loans
(3) Financialisation of gold
(4) Appreciation of gold
(5) All of the above
Q.3 Which of the following has/have been suggested by the author as permanent solution of the problem of increased demand of gold?
(1) Convincing people that their investments in deposits backed by gold would prove profitable
(2) Making people understand that conventional banks deposits yield good return
(3) Gold price should be increased
(4) Taking measures to control inflation
(5) All except 3
Q.4 Trade imbalance has been the result of –
A. Technology export
B. Gold export
C. Cotton export
D. Petroleum export
(1) Only C
(2) Only D
(3) Only A and C
(4) Only B and D
(5) All of the above
Q.5 Why have agricultural gold loans been popular in Andhra Pradesh ?
(1) They are offered at reduced interest rates.
(2) To get over the problem of crop failures
(3) Flexible time option is available to repay the loan
(4) The state government was behind popularizing it.
(5) They have never been popular
Q.6 Which of the following, according to the passage, is not a reason behind the increased demand for gold?
(1) Medicinal quality
(2) Promising returns as investment options
(3) Emotional and cultural link with owning gold
(4) For jewellery
(5) Easy availability
Q.7 According to the passage, which of the following is not true?
(1) Banks can consider accepting gold as collateral for their regular loans
(2) Trade deficit has widened due to demand of gold
(3) Banks and institutions need to introduce attractive savings packages based on gold
(4) 'C’ stands for ‘Collateral’ in ‘CAD’
(5) People demand gold as jewellery as well as an investment option
Q.8 Which of the following have been referred as ‘Policymakers’?
(1) Institutions
(2) Banks
(3) Investment experts
(4) Investors
(5) Government
Q.9 Choose the word most similar in meaning to the word printed in bold, as used in the passage.
In tandem
(1) Separately
(2) Cautiously
(3) Doubtfully
(4) Together
(5) Hopeful
Q. 10 Choose the word most SIMILAR in meaning to the word printed in bold, as used in the passage.
Craving
(1) Endeavour
(2) Demand
(3) Admiration
(4) Investment
(5) Trade
Answers:-
Q.1 (2)
Q.2 (3)
Q.3 (5)
Q.4 (4)
Q.5 (2)
Q.6 (1)
Q.7 (4)
Q.8 (5)
Q.9 (4)
Q.10 (2)
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