Indian Bank Probationary Officer Exam, 2010 - English Language - Part 1

Directions-(Q. 1-5) Which of the phrases (A), (B), (C) and (D) given below should replace the phrase given in bold in the following sentence to make it meaningful and grammatically correct. If the sentence is correct as it is and ‘No correction is required’, mark (E) as the answer.

1. We have accepted over two billion dollars from them yet it is been used to build hospital in the area.
that is yet to use  although it has been used  not yet being used  which will be used  No correction required
 

2. People have respond in favour the government’s efforts to resolve the budget crisis.
favourably responded  response in favour of  responded favourably to  been responding favourably  No correction required
 

3. Striking this deal will enable the company to expand its operations in Europe.
strike this deal that  to strike off this deal  by striking this deal to  this deal was struck which  No correction required
 

4. We admire they are taking this step despite the numerous risks involved.
them to take  them for taking  that they have taken over  how their taking of  No correction required
 

5. The management has been left with no option else to change the branch timings to avoid losing business.
but to change  except the change of  unless it changes with  other than the changing  No correction required
 

Directions—(Q. 6 –20) 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 of the questions.

The great fear in Asia a short while ago was that the region would suffer through the wealth destruction already taking place in the U.S. as a result of the financial crisis. Stock markets tumbled as exports plunged and economic growth deteriorated. Lofty property prices in China and elsewhere looked set to bust as credit tightened and buyers evaporated. But with surprising speed, fear in Asia swung back to greed as the region shows signs of recovery and property and stock prices are soaring in many parts of Asia. Why should the sharp Asian turnaround be greeted with scepticism ? Higher asset prices mean households feel wealthier and better able to spend, which could further fuel the region ’s nascent rebound. But just as easily, Asia could soon find itself saddled with overheated markets similar to the U.S. housing market. In short the world has not changed, it has just moved places. The incipient bubble is being created by government policy. In response to the global credit crunch of
2008, policy makers in Asia slashed interest rates and flooded financial sectors with cash in frantic attempts to keep loans flowing and economies growing. These steps were logical for central bankers striving to reverse a deepening economic crisis. But there’s evidence that there is too much easy money around. It’s winding up in stocks and real estate, pushing prices up too far and too fast for the underlying economic fundamentals. Much of the concern is focused on China, where government stimulus efforts have been large and effective. Money in China has been especially easy to find. Aggregate new bank lending surged 201% in the first half of 2009 from the same period a year earlier, to nearly $ 1.1 trillion. Exuberance over a quick recovery –which was given a boost by China ’s surprisingly strong 7.9% GDP growth in the second quarter–has buoyed investor sentiment not just for stocks but also for real estate.
Former U.S. Federal Reserve Chairman Alan Greenspan argued that bubbles could only be recognised in hindsight. But investors –who have been well schooled in the dangers of bubbles over the past decade are increasingly wary that prices have risen too far, and that the slightest bit of negative economic news could knock markets for a loop. These fears are compounded by the possibility that Asia’s central bankers will begin taking steps to shut off the money. rumours that Beijing was on the verge of tightening credit led to Shanghai stocks plunging 5%. Yet many economists believe that, “there is close to a zero possibility that the Chinese government will do anything this year that constitutes tightening.” And without a major shift in thinking, the easy money conditions will stay in place. In a global economy that has produced more dramatic ups and downs than anyone thought possible over the past two years, Asia may be heading for another disheartening plunge.

6. To which of the following has the author attributed the 2008 Asian financial crisis ?
(1) Reluctance of Asian governments to taper off the economic stimulus
(2) Greed of Asian investors causing them to trade stocks of American companies at high prices
(3) Inflated real estate prices in Asian countries
None  Only (1)  Only (3)  Only (1) and (2)  Only (2)
 

7. What does the author want to convey through the phrase “The world has not changed it has just moved places” ?
At present countries are more dependent on Asian economics than on the US economy  Economies has become interlinked on account of globalisation  Asian governments are implementing the same economic reforms as developed countries  All economies are susceptible to recession because of the state of the US economy  None of these
 

8. Which of the following can be said about the Chinese government’s efforts to revive the economy ?
These were largely unsuccessful as only the housing market improved  The government’s only concern was to boost investor confidence in stocks  These efforts were ineffectual as the economy recovered owing to the US market stabilising  These were appropriate and accomplished the goal of economic revival  They blindly imitated the economic reforms adopted by the US
 

9. Why do experts predict that Asian policy makers will not withdraw fiscal stimulus ?
(1) The US economy is not likely to recover for a long time
(2) Stock markets are yet to regain their former levels
(3) Fear of revolt by greedy citizens
None  Only (3)  Only (1) and (3)  Only (2)  Only (2) and (3)
 

10. What do the statistics about loans given by Chinese banks in 2009 indicate ?
There was hardly any demand for loans in 2008  The Chinese government has borrowed funds from the U.S.  China will take longer than the US to recover from the economic crisis  The GDP of China was below expectations  None of these
 

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