Dear Readers,
Mahendras has started special quizzes for SBI / RBI Main Exam so that you can practice more and more to crack the examination. This SBI / RBI Main Exam 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 / RBI Main Exam.
Q1-8 Read the following passage carefully and answer the questions given below it.
The goods and services tax (GST) will integrate the Indian market, promote economic efficiency by taxing final consumption rather than intermediate goods, encourage voluntary compliance and create a new architecture for cooperative federalism. There were two underlying assumptions for a truly successful GST. The new indirect tax would be levied at a single rate (with a few exceptions) so as to reduce distortions based on rent-seeking behaviour. And the tax rate would be low so as to minimize the regressive character of such indirect taxes, including the ones that GST is replacing. India seems to be drifting away from the goal of a single, moderate GST rate. The news coming from the meeting of the GST council is thus far from encouraging. It seems that India is moving to a multiplicity of rates, with a cess thrown in for good measure. And it is likely that India is going to end up with a relatively high GST rate. This is in stark contrast to the idea of a flawless GST that was proposed in the December 2009 report of a task force headed by Arbind Modi, who was then in the finance ministry, and the 12% rate recommended by the Thirteenth Finance Commission.
The stalemate in the GST council was expected. It was always unlikely that the complex federal bargaining would be over in three days. There are many months of negotiations ahead. What is worrying is the direction these negotiations are taking, rather than the time needed to strike a deal. The political class is quite naturally worried that a low GST rate will hurt budgetary revenue. Further, an increase in the prices of items of mass consumption could lead to a political backlash, hence the multiple slabs rather than a single rate. The states would do well to consider two factors in their calculations. First, they can take the risk of beginning with a low GST rate since any potential revenue losses are to be compensated by New Delhi for five years, so there is insurance against the downside. Second, they have agreed to shift to GST based on the assumption that the new tax will both increase the existing tax base as well as give the economy extra momentum, which will make a lower tax rate possible. The state finance ministers are currently taking a static rather than a dynamic view of indirect tax collections under GST.
The issue of the GST rate actually needs to be seen in tandem with the broader issue of tax reform. What is happening now is the overhaul of the indirect tax system. The direct tax system has not been touched as yet. A lot of preparatory work had already been done by the finance ministry on a new direct tax code, which was then inexplicably shelved. Its promise was similar to that of GST—low rates, minimal exemptions and a wider tax base. Higher direct tax collections will create fiscal space for India to experiment with a lower GST rate. India began to reform its tax system in 1991 when almost nine out of every 10 rupees flowing into the national treasury came from indirect taxes rather than direct taxes. One of the explicit goals of economic reforms was to raise the contribution of direct taxes in the total kitty. There was good reason to do so. Most large economies depend more on direct taxes because they are progressive while indirect taxes are regressive. One of the many hypocrisies of Indian socialism was that it was built on one of the most regressive tax systems in the world.
Q1 Why is the political class worried for a low GST rate?
(A)Because of a low GST rate will hurt budgetary revenue.
(B)Because of an increase in the prices of items of mass consumption.
(C)Because of the multiple slabs rather than a single rate.
01. Only (A)
02. Only (B)
03. Only (C)
04. Both (B) and (C)
05. All (A),(B) and (C)
Q2 What would have to be considered by the states in their calculations?
(A) The risk of beginning with a low GST rate since any potential revenue losses are to be compensated by New Delhi for five years, so there is insurance against the downside.
(B) Their agreement to shift to GST based on the assumption that the new tax will both increase the existing tax base as well as give the economy extra momentum, which will make a lower tax rate possible.
(C) The promise of the similar rates to that of GST.
01. Only (A)
02. Only (B)
03. Both (A) and (B)
04. Both (B) and (C)
05. All(A),(B) and (C)
Q3 Why does the tax rates need to be lowered to have a truly successful GST?
01. for the complex federal bargaining.
02. for a cess thrown in for good measure.
03. for a low GST rate.
04. so as to minimize the regressive character of such indirect taxes, including the ones that GST is replacing
05. so the directions are correct for the given negotiations.
Q4 Which of the following statement is TRUE according to the passage?
01. The new indirect tax would be levied at a double rate (with a few exceptions).
02. The tax rate would be low so as to maximize the regressive character of indirect taxes.
03. India seems to be reaching towards from the goal of a single, moderate GST rate.
04. India is moving to a multiplicity of rates, with a cess thrown in for bad measure.
05. India is going to end up with a relatively high GST rate.
Q5 Which of the following statement is NOT TRUE according to the passage?
01. India is moving towards the abundance of rates, with a cess thrown in for good measure.
02. Indian socialism was that it was built on one of the most progressive tax systems in the world.
03. Most large economies depend more on direct taxes.
04. Direct taxes are progressive while indirect taxes are regressive.
05. An overhauling of the indirect tax system is taking place.
Q6 Why the issue of the GST rate actually needs to be seen in tandem?
01. With the many hypocrisies of Indian socialism
02. With the broader issue of tax reform
03. With a lot of preparatory work had already been done
04. With the overhaul of the indirect tax system
05. All of the above.
Q7 Why the news coming from the meeting of the GST council is far from encouraging?
01. The goods and services tax (GST) will separate the Indian market, promoting economic efficiency.
02. India began to reform its tax system in 1991.
03. Direct taxes as they are progressive in terms of market ethics.
04. India seems to be drifting away from the goal of a single, moderate GST rate.
05. It seems that India is moving to a multiplicity of rates.
Q8 As there were two underlying assumptions for a successful GST, why would the new indirect tax be levied at a single rate?
01. So there is insurance against the downside
02. For a dynamic view of indirect tax collections under GST
03. So as to reduce distortions based on rent-seeking behaviour
04. For any potential revenue losses that are to be compensated
05. So as to the direct tax system has not been touched as yet
Q9-10 Read each part of the sentence to find out if there is any 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, mark your answer as (5).
Q-9 Warning that the 24-hour long lull on the border(1)/ can take "any turn any time" as the BSF said that(2)/ it was fully prepared to deal with any(3) eventuality and any border build-up by the Pakistani side.(4)/No Error (5)
01. Warning that the 24-hour long lull on the border
02. can take "any turn any time" as the BSF said that
03. it was fully prepared to deal with any
04. eventuality and any border build-up by the Pakistani side
05. No Error
Q-10 Pakistan Rangers once again violated(1)/ the ceasefire along the border at Pura sector(2)/ in Jammu district as he fired from(3)/ small arms targeting the Indian posts.(4)/No Error (5)
01. Pakistan Rangers once again violated
02. the ceasefire along the border at Pura sector
03. in Jammu district as he fired from
04. small arms targeting the Indian posts
05. No Error
Answers
Q.1 (1)
Q.2 (3)
Q.3 (4)
Q.4 (5)
Q.5 (2)
Q.6 (4)
Q.7 (4)
Q.8 (3)
Q.9 (5)
Q.10 (3)
Mahendras has started special quizzes for SBI / RBI Main Exam so that you can practice more and more to crack the examination. This SBI / RBI Main Exam 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 / RBI Main Exam.
Q1-8 Read the following passage carefully and answer the questions given below it.
The goods and services tax (GST) will integrate the Indian market, promote economic efficiency by taxing final consumption rather than intermediate goods, encourage voluntary compliance and create a new architecture for cooperative federalism. There were two underlying assumptions for a truly successful GST. The new indirect tax would be levied at a single rate (with a few exceptions) so as to reduce distortions based on rent-seeking behaviour. And the tax rate would be low so as to minimize the regressive character of such indirect taxes, including the ones that GST is replacing. India seems to be drifting away from the goal of a single, moderate GST rate. The news coming from the meeting of the GST council is thus far from encouraging. It seems that India is moving to a multiplicity of rates, with a cess thrown in for good measure. And it is likely that India is going to end up with a relatively high GST rate. This is in stark contrast to the idea of a flawless GST that was proposed in the December 2009 report of a task force headed by Arbind Modi, who was then in the finance ministry, and the 12% rate recommended by the Thirteenth Finance Commission.
The stalemate in the GST council was expected. It was always unlikely that the complex federal bargaining would be over in three days. There are many months of negotiations ahead. What is worrying is the direction these negotiations are taking, rather than the time needed to strike a deal. The political class is quite naturally worried that a low GST rate will hurt budgetary revenue. Further, an increase in the prices of items of mass consumption could lead to a political backlash, hence the multiple slabs rather than a single rate. The states would do well to consider two factors in their calculations. First, they can take the risk of beginning with a low GST rate since any potential revenue losses are to be compensated by New Delhi for five years, so there is insurance against the downside. Second, they have agreed to shift to GST based on the assumption that the new tax will both increase the existing tax base as well as give the economy extra momentum, which will make a lower tax rate possible. The state finance ministers are currently taking a static rather than a dynamic view of indirect tax collections under GST.
The issue of the GST rate actually needs to be seen in tandem with the broader issue of tax reform. What is happening now is the overhaul of the indirect tax system. The direct tax system has not been touched as yet. A lot of preparatory work had already been done by the finance ministry on a new direct tax code, which was then inexplicably shelved. Its promise was similar to that of GST—low rates, minimal exemptions and a wider tax base. Higher direct tax collections will create fiscal space for India to experiment with a lower GST rate. India began to reform its tax system in 1991 when almost nine out of every 10 rupees flowing into the national treasury came from indirect taxes rather than direct taxes. One of the explicit goals of economic reforms was to raise the contribution of direct taxes in the total kitty. There was good reason to do so. Most large economies depend more on direct taxes because they are progressive while indirect taxes are regressive. One of the many hypocrisies of Indian socialism was that it was built on one of the most regressive tax systems in the world.
Q1 Why is the political class worried for a low GST rate?
(A)Because of a low GST rate will hurt budgetary revenue.
(B)Because of an increase in the prices of items of mass consumption.
(C)Because of the multiple slabs rather than a single rate.
01. Only (A)
02. Only (B)
03. Only (C)
04. Both (B) and (C)
05. All (A),(B) and (C)
Q2 What would have to be considered by the states in their calculations?
(A) The risk of beginning with a low GST rate since any potential revenue losses are to be compensated by New Delhi for five years, so there is insurance against the downside.
(B) Their agreement to shift to GST based on the assumption that the new tax will both increase the existing tax base as well as give the economy extra momentum, which will make a lower tax rate possible.
(C) The promise of the similar rates to that of GST.
01. Only (A)
02. Only (B)
03. Both (A) and (B)
04. Both (B) and (C)
05. All(A),(B) and (C)
Q3 Why does the tax rates need to be lowered to have a truly successful GST?
01. for the complex federal bargaining.
02. for a cess thrown in for good measure.
03. for a low GST rate.
04. so as to minimize the regressive character of such indirect taxes, including the ones that GST is replacing
05. so the directions are correct for the given negotiations.
Q4 Which of the following statement is TRUE according to the passage?
01. The new indirect tax would be levied at a double rate (with a few exceptions).
02. The tax rate would be low so as to maximize the regressive character of indirect taxes.
03. India seems to be reaching towards from the goal of a single, moderate GST rate.
04. India is moving to a multiplicity of rates, with a cess thrown in for bad measure.
05. India is going to end up with a relatively high GST rate.
Q5 Which of the following statement is NOT TRUE according to the passage?
01. India is moving towards the abundance of rates, with a cess thrown in for good measure.
02. Indian socialism was that it was built on one of the most progressive tax systems in the world.
03. Most large economies depend more on direct taxes.
04. Direct taxes are progressive while indirect taxes are regressive.
05. An overhauling of the indirect tax system is taking place.
Q6 Why the issue of the GST rate actually needs to be seen in tandem?
01. With the many hypocrisies of Indian socialism
02. With the broader issue of tax reform
03. With a lot of preparatory work had already been done
04. With the overhaul of the indirect tax system
05. All of the above.
Q7 Why the news coming from the meeting of the GST council is far from encouraging?
01. The goods and services tax (GST) will separate the Indian market, promoting economic efficiency.
02. India began to reform its tax system in 1991.
03. Direct taxes as they are progressive in terms of market ethics.
04. India seems to be drifting away from the goal of a single, moderate GST rate.
05. It seems that India is moving to a multiplicity of rates.
Q8 As there were two underlying assumptions for a successful GST, why would the new indirect tax be levied at a single rate?
01. So there is insurance against the downside
02. For a dynamic view of indirect tax collections under GST
03. So as to reduce distortions based on rent-seeking behaviour
04. For any potential revenue losses that are to be compensated
05. So as to the direct tax system has not been touched as yet
Q9-10 Read each part of the sentence to find out if there is any 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, mark your answer as (5).
Q-9 Warning that the 24-hour long lull on the border(1)/ can take "any turn any time" as the BSF said that(2)/ it was fully prepared to deal with any(3) eventuality and any border build-up by the Pakistani side.(4)/No Error (5)
01. Warning that the 24-hour long lull on the border
02. can take "any turn any time" as the BSF said that
03. it was fully prepared to deal with any
04. eventuality and any border build-up by the Pakistani side
05. No Error
Q-10 Pakistan Rangers once again violated(1)/ the ceasefire along the border at Pura sector(2)/ in Jammu district as he fired from(3)/ small arms targeting the Indian posts.(4)/No Error (5)
01. Pakistan Rangers once again violated
02. the ceasefire along the border at Pura sector
03. in Jammu district as he fired from
04. small arms targeting the Indian posts
05. No Error
Answers
Q.1 (1)
Q.2 (3)
Q.3 (4)
Q.4 (5)
Q.5 (2)
Q.6 (4)
Q.7 (4)
Q.8 (3)
Q.9 (5)
Q.10 (3)
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