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Mahendras has started special quizzes for IBPS | RBI | SBI | NABARD | LIC so that you can practice more and more to crack the examination. This IBPS | RBI | SBI | NABARD | LIC Exam special quiz series will mould your preparations in the right direction, and the regular practice of these quizzes will be very helpful in scoring good marks in the Examination. Here we are providing you with the critical question of English Language for the IBPS | RBI | SBI | NABARD | LIC.
Q1-10 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.
The escalation of tariffs on gold imports in the recent past shows the Centre’s commitment towards curbing gold imports, which creates perennial pressure on India’s current account deficit. Will such a policy succeed?
A study for the period April 1996 to March 2014 conducted on the sensitivity of demand for yellow metal to prices and other factors in India reveals that such tariff increases may have negligible effect. In 2009-10, the Indian government had increased import duty on all forms of gold imports, but this had minimal impact on buying. In January 2012, import duty on gold was again raised to 2 per cent of value from the earlier flat?300/10 gm and subsequently three times in 2013 to 10 per cent.
In 2013, the Reserve Bank of India (RBI) introduced the 80:20 scheme, which required gold importers to re-export 20 per cent of the incoming gold and also banned the import of gold through star trading houses. However, the resultant shortfall in supply led to a phenomenal rise in the premium on gold in the market and a spike in gold smuggling. Gold demand in India is by no means, easy to understand. The massive accumulation of gold for centuries has led to approximately 22,000 tonnes of gold being hoarded by Indian households. The demand for gold is driven by economic, socio-cultural and psychological factors.
In India, almost the entire demand for gold is met by imports. It is imported in three forms, namely powder, semi-manufactured and unwrought forms. Gold jewellery demand is linked to the first two forms, whereas the latter represents demand for gold bars. The changing demand pattern is reflected in the spectacular rise in the import of gold bars due to its appeal as a ‘safe haven’ after mid-2008. On the contrary, jewellery demand dropped in 2008 and 2009 and remained steady afterwards.
There are two important aspects of gold demand that are usually overlooked by policymakers. First, many decisions concerning gold consumption take time to change. These decisions include long-term commitments such as accumulating wealth for adverse financial situations. Second, there may exist a psychological stock in consumers’ minds. If the stock of gold falls short, s/he would purchase gold. Quite often, the policies are based on aggregate gold demand patterns, while different components of gold demand behave differently.
Our study finds that jewellery demand is more sensitive to price changes than the demand for gold bars. During the study period, the proportion of imports of the unwrought form of gold (i.e. bars) had been 82.8 per cent on average and never fallen below 53.3 per cent, while the other two forms of gold have been 17.2 per cent on average and never shot up beyond 46.7 per cent. Therefore, the tariff escalation would not reduce the import of gold bars substantially, while it could bring down gold jewellery demand more in the long run than in the short run.
In the post-crisis period, gold jewellery demand was subdued following a successive rise in tariff, but the total gold demand remained virtually unaffected due to resilience in demand for bars. Such findings should help policymakers.
Q1 What are the requirements of the 80:20 scheme that the Reserve Bank of India (RBI) introduced?
A. gold importers to re-export 20 per cent of the incoming gold
B. To ban the import of gold through star trading houses.
C. rise in the premium on gold in the market
D. spike in gold smuggling.
01. Only A
02. Only B
03. Both A and B
04. Both C and D
05. All of the above
Q2 In India, gold is imported in which of the following forms?
01. powdered gold
02. semi-manufactured gold
03. Unwrought forms of gold
04. Both A and B
05. All of the above
Q3 What is referred to as the YELLOW METAL in the given passage?
01. Copper
02. Platinum
03. Gold
04. Bronze
05. Silver
Q4 Which of the following is /are are the aspects of gold demand usually overlooked by the policymakers?
01. Many decisions concerning gold consumption are quick.
02. for adverse financial situations.
03. there may exist a psychological stock in consumers’ minds.
04. Both A and B
05. All of the above
Q5 Which of the following sentences is/are NOT TRUE in context to the passage?
01. Jewellery demand dropped in 2008 and 2009 and remained steady afterwards.
02. In 2009-10, the Indian government had decreased import duty on all forms of gold imports.
03. The demand for gold is driven by economic, socio-cultural and psychological factors.
04. The massive accumulation of gold for centuries has led to approximately 22,000 tonnes of gold being hoarded by Indian households
05. All of the above
Q6 Out of the given combinations, find which is/are the correct match for each other.
A. RBI’s 80-20 scheme - 2013
B. jwellery demand drop - 2008
C. Raise in import duty of gold - 2014
D. Proportion of unwrought gold imports- never shot up beyond 53%
01. Only A
02. Both A and B
03. Only C
04. Only D
05. All of the above
Q7 Which of the following options is the most similar in meaning to the word 'hoarded' as given in the passage?
01. distributed
02. squandered
03. stashed
04. molested
05. mishandled
Q8 Which of the following words is the most similar in meaning to the word 'safe haven' as given in the passage?
01. monastery
02. lamasery
03. precipice
04. port in a storm
05. asylum
Q9 Which of the following words is the most opposite to the meaning of the word 'curbing' as given in the passage?
01. restricted
02. bridle
03. trammel
04. lauded
05. facilitate
Q10 Which of the following words is the most opposite in meaning to the word 'perennial' as given in the passage?
01. temporary
02. durable
03. ceaseless
04. endeavor
05. conatus
Answers
Q.1 (3)
Q.2 (5)
Q.3 (3)
Q.4 (3)
Q.5 (2)
Q.6 (2)
Q.7 (3)
Q.8 (4)
Q.9 (5)
Q.10 (1)
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