English Language Quiz For IBPS & SBI Exam | 11-02-2021

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Mahendras has started special quizzes for IBPS & SBI Exam so that you can practice more and more to crack the examination. This IBPS & SBI Exam 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 the important question of reasoning ability for the IBPS & SBI Exam.

1-10. Read the following passage carefully and answer the questions given below it. Certain words have been given in bold to help you locate them while answering some questions.

With Reserve Bank of India (RBI) Governor deciding not to seek a second term, the government is in the process of finalising his successor, and an announcement is expected shortly. While the names of several economists and bureaucrats are doing a thing certain is that the new governor will face number of challenges ranging from reining in inflation to managing currency volatility.

One of the immediate challenge is the redemption pressure of the Foreign Currency Non-Resident (bank) deposits, or the FCNR (B) deposits, as outflows will start from coming month. These deposits were raised in 2013 when the rupee was depreciating sharply and went on to hit its lowest against the dollar in August 2013. While the governor said the outflows, estimated at about $20 billion, was a non-event, there are concerns of foreign inflows slowing down. “The redemption of the FCNR (B) deposits can pose a challenge if foreign exchange flows dry up due to Brexit as banks will struggle to deliver more than $10 billion of forwards to the RBI after maintaining nostro balances of $10 billion to $15 billion.

The new governor will be also the first one to make his policy stance under the new framework of the Monetary Policy Committee. The Centre has already laid down the rules for the selection of its nominees to the panel.MPC is a departure from the present practice where the entire onus rests on the governor for any rate decision. While the governor will have the casting vote if there is a tie, the responsibility will be shared by the committee. The governor has to ensure that he does not opt for the casting vote frequently. An economist of some Bank said the new governor might be tasked with the transition to the new policy framework, in case the panel formulation does not happen before the policy review scheduled for August. After sometime, the next policy review will be there.

“The approach (MPC) will be supportive to the governor. Whatever the decision is, more discussion and better discipline will be ensured with this committee approach which will improve credibility of decision-making,” said chief economist. The new governor will take charge amid expectation of sharp cuts in interest rates – something which the governor resisted. RBI had reduced the policy rate by 150 bps to 6.5 per cent earlier as well. However, the expectation was that of deeper cuts. The burden of expectation now will fall on the new governor at a time when retail inflation accelerated to a near two-year high of 5.76 per cent in May, driven by surging prices of food products such as pulses and sugar. This is higher than the 5 per cent inflation target set by the RBI.

Recently released meeting minutes of the technical advisory committee of monetary policy showed that members had expressed concern on the inflation outlook since food inflation rose by 100 basis points, headline inflation moved up by 60 basis points, and after excluding food, fuel, petrol and diesel, inflation edged up marginally and remained sticky. The outgoing governor has cautioned against dropping the guard against inflation. The new governor may find it challenging to manage rate cut expectation of the government and the industry at a time when inflation is on the rise, said a former central banker.

1 What is one of the immediate challenges new governor will face?

01. the redemption pressure of the Foreign Currency Non-Resident deposits, as outflows will start from coming month.

02. The new governor will take charge amid expectation of sharp cuts in interest rates.

03. The outgoing governor has cautioned against dropping the guard against inflation.

04. The panel formulation does not happen before the policy review scheduled for August.

05. Challenges reining in inflation to managing currency volatility.

2 The (MPC) approach will be supportive to whom?

01. Chancellor

02. Government

03. Bureaucrat

04. Governor

05. RBI

3 The Centre has already laid down the rules for the selection of whom?

01. its nominees to the panel

02. RBI governor

03. Government

04. advisory committee of monetary policy

05. other members.

4 What according to the author is TRUE in context of the passage given?

01. Recently released meeting minutes of the technical advisory committee of monetary policy showed that members had not expressed their concern on the inflation outlook.

02. The approach (MPC) will not be supportive to the governor.

03. One of the immediate challenge is the exemption pressure of the Foreign Currency Non-Resident (bank) deposits

04. The new governor will be the first one to make his policy stance under the new framework of the Monetary Policy Committee.

05. Said the outflows, estimated at about $20 billion, was a non-event, there are concerns of foreign inflows slowing down.

5 what should be the appropriate title to the above mentioned passage?

01. Priorities of the new Governor

02. Challenges to the New Governor

03. RBI and its Governors

04. FDI

05. Monetary policy

6 What according to the author is NOT TRUE according to the author?

A. The deposits were raised in 2013 when the rupee was raising sharply and went on to hit its lowest against the dollar in August 2013.

B. Recently released meeting minutes of the technical advisory committee of monetary policy showed that members had expressed concern on the inflation outlook since food inflation rose by 100 basis points.

C. The approach (MPC) will be unsupportive to the governor.

01. Only A

02. Only B

03. Both (A) and (B)

04. Only C

05. Both (A) and (C)

7 Which of the following is the most similar in meaning to the word ‘Surging’ as given in the passage?

01. boosting

02. low

03. abraid

04. sheen

05. quirk

8 Which of the following is the most similar in meaning to the word ‘Credibility’ as given in the passage?

01. regularity

02. integrity

03. uproar

04. intensity

05. implausibility

9 Which of the following is the most opposite in meaning to the word ‘Outflows’ as given in the passage?

01. deluge

02. inflows

03. discharging

04. denies

05. usurer

10 Which of the following is the most opposite in meaning to the word ‘depreciating’ as given in the passage?

01. inundation

02. disparaging

03. raising

04. confines

05. accruing

Answers:-

Q.1 (1)

Q.2 (4)

Q.3 (1)

Q.4 (4)

Q.5 (2)

Q.6 (5)

Q.7 (1)

Q.8 (2)

Q.9 (2)

Q.10 (3)