English Quiz for Upcoming IBPS Bank Exams – Set 57 | Passage Completion

Directions (Qs. 1-10): In each of the following questions a short
passage is given with one of the lines in the passage missing and represented
by a blank. Select the best out of the five answer choices given, to make the
passage complete and coherent.

1. Whether the Government is
right in bailing out a private sector bank is an issue that is decided more
than by the long term social security policy of the Government, than by
economic reasons alone……………….. Nevertheless, in a situation of scarcity of
resources, bailing out somebody means the denial of resources to others. The
irony of it is that in performing its duties of proper governance to the larger
society through the process of bailing out, Government excuses the lack of
corporate governance in banks.

(a) Economists world over learnt
it hard way during the Great depression

(b) This is elementary principle
of economics taught in schools

(c) Reasons are not limited to
these two but extend to debts, liquidity & credit ratings issues

(d) It was unexpected and came
like a bolt from the blue

(e) Particularly true for the
Asian countries like India and China

2. But no depreciation is allowed
on Live Stock i.e. Horses. Although the horses are in the nature of fixed
assets in the hands of the owner, no depreciation is allowed under Income Tax
Act. Instead when the animal dies or becomes permanently useless the entire
value of the horse can be written off as revenue loss in the year in which it
dies or becomes permanently useless. When the gross income exceeds the total
expenditure, it results in net profit which will be taxable at usual rates of
tax applicable to the person. ………………….. Although the live stock is in the
nature of fixed assets of the owners, buy them, maintain them, train them, and
participate in races and Sell them or send them away to studs when they are
useless.

(a) But when the gross income is
less than the expenditure, then results in loss

(b) But when the gross income is
higher than the expenditure, then results in loss

(c) But when the gross income is
equal to expenditure then result is loss

(d) But when the gross income is
there loss is the result

(e) But when the gross income is
increasing then result is becoming evident

3. Aggregation of risks is
somewhat quite new to banks in India. While some banks have started thinking in
that line by trying to put integrated limits framework and integrated risk
policies as well as using CBS solutions for technological integration, the
effort required is beyond such requirement. Risk aggregation would mean
aggregating the individual risk measures to decide most appropriate assets
class that would contain the risk to the desired level dictated by the risk
appetite .Capital allocation (about how much) would be based on such
strategies………..

(a) Most banks are yet to
conceptualize the same in their processes

(b) Most banks have already
integrated it in their functioning; it is working over the years
satisfactorily.

(c) Which would in long run prove
to be the growth impeding

(d) Of risk aggregation which is
really a new concept to Indian banks

(e) On expected lines of the
regulation conditions laid down in the manual of the bank

4. However, it is possible that
the non-resident entity may have a business connection with the resident Indian
entity. In such a case, the resident Indian entity could be treated as
Permanent Establishment of the non-resident entity. ……………During the last decade
or so, India has seen a steady growth of outsourcing of business processes by
non residents or foreign companies to IT-enabled entities in India. Such
entities are either branches or associated enterprises of the foreign
enterprise or an independent India enterprise. The non-resident entity or
foreign company will be liable to tax in India only if the IT -enabled BPO unit
in India constitutes its Permanent Establishment.

(a) The tax treatment of the
Permanent Establishment in such a case is under consideration

(b) How would the profit would be
shared is not decided yet?

(c) A lengthy and cumbersome
process requiring a lot of application of mind and revenue principles is ahead
for the tax department of India

(d) A new trend is seen in last
decade.

(e) Indian companies have a lot
on stake as competition increases.

5. The Finance Commission is
entrusted with periodic review and resolution of Central- State fiscal
problems. It was the clear intention of the father of the India Constitution
that all matters pertaining to normal Central-State financial adjustment should
be scrutinized by the Finance commission………………. An incidental and by no means insignificant
advantage of the appointment of a Finance Commission has generally been to
rekindle interest in issues pertaining to financial relations between the
Centre and the States and to promote an enlightened national debate on the
several facets of India’s federal fiscal set-up. The role of the Indian Finance
Commission is unique in many ways. It is one of few commissions provided in the
constitution.

(a) which was given a pre-eminent
role in the resolution of problems in fiscal federalism

(b) Which was constituted with
the vision of a modern India with modern facilities

(c) Which was a dream of Father
of Nation also

(d) Which was to be unique in its
ways and a constitutional body

(e) Which was introduced as a
backbone for Indian Economy

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6. The art of medicine is the art
of healing, not just treating, and not even just curing. Yet it is only when
the art and science join hands that healing is best accomplished. The author
then adds ……………., remember that the practice of medicine is an art, not a
trade, a calling, not a business, a calling in which your heart will be
exercised equally with your head. This book is rare work of the art of
medicine, from a very rare practitioner of the science of medicine.

(a) “ mankind depends on science
as equally on the art”

(b) “ for the mercy’s sake let us
have little less science and a little more art”

(c) “ let us consider science at
par with art”

(d) “ let us forget what is art
and what is science”

(e) “ do not blame medicine for
it”

7. The thirteen Finance
commissions cover a span of more than 60 years during which many conditions
have changed. Correspondingly, the approach of the later commissions may be
expected to be different in several respects from the earlier ones.
Nevertheless, it is possible to discern certain common elements in the thinking
of the successive Finance Commissions. Which have come to evolve gradually what
may be called ‘the Indian Finance Commission’s approach to federal finance……..
According to this approach, States’ share of Central taxes is not allocated
strictly on the basis of need. These problems and shortcomings come later in
light but have caused what was not accounted at that time.

(a) And it happened to be in that
way

(b) There are several
inadequacies in the approach of the Finance Commissions

(c) Evolution is a long process
and it is a same story for commissions

(d) But they differ completely
from them and each time new approach was looked for

(e) This was based on the tax
sharing basis principle of commissions        

8. The Parihar is, for all
practical purposes, a functional, fully fitted out submarine. After this brief
ceremony, the submarine is to be towed out for the first time across the naval
dockyard and moored in an enclosed pier called Site Bravo …………..Over the next
few months, it will commence a series of harbour trials. The primary system, a
nuclear reactor, generates the heat which drives the secondary system, a steam
turbine which spins the submarine’s propeller, is to be tested separately.
First, the steam turbine is to be jumpstarted with shore based supply. The next
significant step will be starting up the submarine’s nuclear reactor where
Zirconium rods in the core of the submarine’s pressurized water reactor will be
slowly raised.

(a) It is the advent of new
technology in India

(b) It has entered in chain
reaction chamber

(c) It is like coming out from
maternity ward to nursery

(d) It is unprecedented step to
start such a sequence of processes

(e) It is very critical for a
nuclear submarine

9. For all those women who
perpetually complained about how all cars are designed for men, company is out
with a car especially suited for them. The Your Concept Car………… is a dream come
true. It has a keyless entry, additional storage space, a lower hood and the
back seat screen going all the way till the rear end so that you know exactly
where the car ends. Add to this a parking aid for parallel parking and their
most advanced technology, Ergo vision that scans the body at the dealership,
stores the data and every time you hop into the car, automatically adjusts the
height of the seat, the steering wheel, the distance between them and
everything else to your specifications. Even though it is a concept car that
will not hit the roads, its women-friendly features have been incorporated in
some of the other cars.

(a) The first to be designed by
experts

(b) The first to be launched by
company

(c) The first to be the concept
car

(d) The first to be designed by all
women team

(e) The first to with so many
features

10. The growing importance of
Union excise amongst the shared taxes and the ascendancy of population as the
principal basis of distribution are the two salient features of taxsharing
determined by the Finance Commissions. The finance Commission is called upon to
determine the State that would be in need of grant-assistance of the
quinqennium under reference and the amount of such assistance in each case. The
first Finance Commission laid down some important principles governing the
determination of grants -in-aid for States. …………………

(a) These principles have been
generally, endorsed by all the subsequent Commissions.

(b) These principles have been
discarded by subsequent commissions

(c) These principles were taken
from the Finance commissions of the other countries

(d) These principles were
derivations from the elementary formulas of text books

(e) These principles cannot be
changed and are fixed

1. (a) Only option (a) seems to
be logical for the context. As subsequent part of passage shows how it was a
problem to bail out one and to deny other the same resources. Option (d) and
(e) are out of place.

2. (a) It is only logical
option, other options do not follow any logic. If income is less than
expenditure then there is definitely a loss.

3. (a) As the passage says that
risk aggregation is new at the beginning of passage it can be inferred that
most banks are yet to conceptualize it in their processes. Hence option (a) is
correct. Option (c) is farfetched conclusion. Option (d) is repetition of what
is being stated in passage earlier. So it cannot be the answer.

4. (a) Passage is about
non-resident Indian entity and its tax deduction. Other options are not in the
context of passage as they talk about the things which are not given or can be
inferred from the passage.

5. (a) Before the blank space,
centre-state problems are discussed and after the blank, advantage of finance
commission is given in this regard. So option (a) in right approach has shown
finance commission in connection with both the problems and its own advantage.
Option (c) is out of context. Option (d) is also mentioned in passage in later
parts. Option (e) can be true but not the best answer.

6. (b) Option (b) is right as it
has connection with what is said in the passage after the blank space. Mercy in
this option connects well with not a trade, not a business etc.

7. (b) Last part of passage is
about shortcomings given in the statement of option (b). New approach in option
(d) can fit but leaves the passage stranded and two parts before the blank and
after the blank cannot be joined through this option.

8. (c) The submarine is newly
developed and introduced. It is like coming out from maternity ward to nursery.

9. (d) As this car is specially
designed for the women it can be said that car is designed by all women team.
This is the best option which emphasizes the point of passage.

10. (c) First finance commission
laid down some of the principles which were followed by subsequent commissions
is a positive statement which is the tone of passage. Passage presents the
finance commission in positive light. Option (e) and (d) are doubtful and
cannot be reached from the passage.