New Pattern English Quiz for upcoming IBPS & Insurance Mains Exams – Set 2

1. North India lies in the
Indo-Gangetic plain. Towards the North is the Himalayas, which separates the
country from Central Asia. The Vindhya ranges separate the North from the
South. South India is situated in the Peninsular Deccan Plateau. This region
has the Arabian Sea in the west, Bay of Bengal in the east and Indian Ocean in
the south. When talking about the racial differences, the North Indians are
termed as Aryans, and the South Indians as Dravidians. In physique as well,
there are many differences between the people of the South and North. The North
Indians are taller, and more strongly built than the South Indians. The South
Indians are a bit darker than the North Indians………….. Salwar Kamiz is the
widely used dress by North Indian women. On the other hand, women in the South
wear saris. While men in the North wear Salwar, the men in South prefer dhotis.
Another difference that can be seen between North and South India is their
food. When compared to the North Indian food, the South Indian food is spicier.
The South Indians use more tamarind and coconut when compared to North Indians.
The North Indians use more milk products when compared to the people of South
India. When talking about the culture, there is vast difference between North
and South India. One can come across differences in their music (Northern
Hindustani and Southern Carnatic), dance forms and folks.

(a) A big difference is in their
style of living

(b) A big difference is in their
fashion statements

(c) A big difference can be seen
in their dressing styles

(d) A big difference arises in
their taste for clothes based on their earnings

(e) A big difference can be seen
in their climate that demands different dressing styles

2. An open economy is an economy
in which there are economic activities between domestic community and outside,
e.g. people, including businesses, can trade in goods and services with other
people and businesses in the international community, and flow of funds as
investment across the border. Trade can be in the form of managerial exchange,
technology transfers, all kinds of goods and services. Although, there are
certain exceptions that cannot be exchanged, like, railway services of a
country cannot be traded with another. To avail this service, a country has to
produce its own. This contrasts with a closed economy in which international
trade and finance cannot take place. The act of selling goods or services to a
foreign country is called exporting. The act of buying goods or services from a
foreign country is called importing…………. There are a number of advantages for
citizens of a country with an open economy. One primary advantage is that the
citizen consumers have a much larger variety of goods and services from which
to choose. Additionally, consumers have an opportunity to invest their savings
outside of the country. In an open economy, a country’s spending in any given
year need not to equal its output of goods and services. A country can spend
more money than it produces by borrowing from abroad, or it can spend less than
it produces and lend the difference to foreigners. There is no closed economy
in today’s world.

(a) Together exporting and
importing are collectively called trade

(b) Exporting and Importing are
exclusive classes of trade

(c) Both are independent of each
other and do not constitute the term ‘trade’.

(d) Together they make GDP of a
country

(e) Together they are indicators
of influence of a country on world map

3. A no budget film is a produced
film made with very little, or no money. Young directors starting out in
filmmaking commonly use this method because there are few other options
available to them at that point. All the actors and technicians are employed
without remuneration, and the films are largely non-profit,…………….. or uses a
very minimum “crew” of volunteers to assist him/her on such projects where no
money or financing is available, not including the cost of film. No-budget
films are made every day with video tapes and consumer cameras.

(a) Usually the director works
alone on such films

(b) These films are huge
employers in entertainment industry

(c) A team of experts two or
three in number starts without any significant infrastructure

(d) Director is the cameraman,
lightman, scriptwriter, screen player and sometimes even act himself in the
film

(e) It is difficult task to find
suitable people with desired skills, hence director works alone on such films

4. In finance, the term ‘yield’
describes the amount in cash that returns to the owners of a security. Normally
it does not include the price variations, at the difference of the total
return. Yield applies to various stated rates of return on stocks (common and
preferred, and convertible), fixed income instruments (bonds, notes, bills,
strips, zero coupon), and some other investment type insurance products (e.g.
annuities)……… It can be calculated as a ratio or as an internal rate of
return (IRR). It may be used to state the owner’s total return, or just a
portion of income, or exceed the income. It may be used for production output
in other industries. Because of these differences, the yields from different
uses should never be compared as if they were equal.

(a) The term is a misnomer

(b) The term is understood
differently by different people

(c) The term has no definite
meaning

(d) The term is used in different
situations to mean different things

(e) The term slightly differs in
meaning from the textbook definitions

5. Market trends are fluctuated
on the demographics and technology. In a macro economical view, the current
state of consumer trust in spending will vary the circulation of currency. In a
micro economical view, demographics within a market will change the advancement
of businesses and companies. With the introduction of the internet, consumers have
access to different vendors as well as substitute products and services
changing the direction of which a market will go. Despite that, it is believed
that market trends follow one direction over a matter of time, there are many
different factors that can change this idea. Technology scurves as is explained
in the book The Innovator’s Dilemma. It states that technology will start slow
then increase in users once better understood, eventually levelling off once
another technology replaces it………………….

(a) This proves that change in
the market is actually consistent

(b) Change is inevitable

(c) Fluctuations with these
changes do not last long

(d) Be prepared for the change

(e) Changing changes the fortunes

6. The financial year 2015-16
witnessed a slew of acquisitions across diverse sectors of the economy in
India…………… Of all sectors, steel was the most dominant in terms of stake
sales as deals valuing $ 3.862 billion took place in Q1 of 2015-16 by the
Indian companies in the global arena. Energy ranked second, with automotive and
auto components close on its heels. In the domestic segment, iron ore, aviation
and steel were the most prolific in terms of mergers and acquisitions. With
Indian corporate houses showing sustained growth over the last decade, many
have shown an interest in growing globally by choosing to acquire or merge with
other companies outside India. One such example would be the acquisition of
Britain’s Corus by Tata an Indian conglomerate by way of a leveraged buy-out.
The Tata’s also acquired Jaguar and Land Rover in a significant cross border
transaction. Whereas both transactions involved the acquisition of assets in a
foreign jurisdiction, both transactions were also governed by Indian domestic
law.

(a) These acquisitions are purely
Indian but covering diverse sectors ranging from automobiles to Steel

(b) Acquisitions are like a big
shark swelling a small fish without noticeable fight put up by the latter

(c) Unlike in the past, such
activity was not limited to acquisitions within India or of Indian companies

(d) Globalization has brought
this trend to India and Indian companies are no longer isolated from its
effects

(e) International law of
acquisitions holds true for all the countries and binding on each member

7. ……………….. But there is, in
fact, a vast difference. Merger generally refers to a circumstance in which the
assets and liabilities of a company (merging company) are vested in another
company (the merged company). The merging entity loses its identity and its
shareholders become shareholders of the merged company. On the other hand, an
amalgamation is an arrangement, whereby the assets and liabilities of two or
more companies (amalgamating companies) become vested in another company (the
amalgamated company). The amalgamating companies all lose their identity and
emerge as the amalgamated company; though in certain transaction structures the
amalgamated company may or may not be one of the original companies.

(a) Very often, the two
expressions “merger” and “amalgamation” are used synonymously

(b) ‘Merger’ and ‘amalgamation’
are terms that can be used interchangeably but up to a limit

(c) ‘Merger’ and ‘amalgamation’
are synonymous to each other

(d) ‘Merger’ and ‘amalgamation’
are not synonymous to each other

(e) Words ‘merger’ and
‘amalgamation’ should be used cautiously

8. Being one of the central banks
which was involved in the exercise of drawing up the Core Principles, the
Reserve Bank of India had assessed its own position with respect to these Principles
in 1998. The assessment had shown that most of the Core Principles were already
enshrined in our existing legislation or current regulations. Gaps had been
identified between existing practice and principle mainly in the areas of risk
management in banks, inter-agency cooperation with other domestic/
international regulators and consolidated supervision. Internal working groups
were set up to suggest measures to bridge these gaps and their recommendations
have been accepted by the Board for Financial Supervision and are now in the
process of being implemented. Given the spread and reach of the Indian banking
system, with over 60,000 branches of more than 100 banks…….. However, the
Reserve Bank of India is committed to the full implementation of the Core
Principles. The Bank also serves on the Core Principles Liaison Group of the
BCBS, which has been formed “to promote the timely and complete implementation
of these principles worldwide”.

(a) implementation is a challenge
for the supervisors

(b) implementation is impossible

(c) implementation should be done
on trail basis

(d) implementation is a problem
for supervisors

(e) implementation is a long
process to take years

9. Indian banks having overseas
operations are required to lay down internal guidelines on country risk
management and fix limits based on risk rating of the country. Limits should
also be fixed for a group of countries in a particular risk category subject to
a maximum ceiling fixed by RBI. In the normal course, prudential exposure norms
apply to all loans and investments overseas including loans to sovereign
entities ………………….. Adequacy of the bank’s policy on identification, measurement
and control of country risk is assessed during onsite inspection by host
country representatives. It is also monitored through a quarterly return on
country-wise counter party exposure.

(a) The overseas branches are
governed by the host country regulations also

(b) Host country is speculative
for the success of these branches

(c) Banks and host countries
conduct joint audits in branches in that country

(d) Host country regulations do
not bind on these overseas branches

(e) Success of overseas branches
depend on only the policies of host countries

1. (c) After the blank space two
or three sentences are about the dressing styles of North and South Indians. It
is not about the climate or earning based choice or fashion. Rather it is just
the difference on general basis.

2. (a) This question is more of a
checking of logic and sense than an understanding of the passage. Only export
and import do not make GDP of a country. They are not the only indicators of
influence of a country on world map. Option (c) is not logical and no sense
prevails through it.

3. (a) Option (b) is not correct
as it goes against the passage. Option (e) is illogical and does not fit as
there is no reason why skilled people are not available. Option (d) seems
frivolous on the basis of its impossibility. Experts are not discussed in
passage. Only option which fits well in the context is director working alone
on such films of low budget.

4. (b) See the part of passage after the blank
space – this gives a number of meanings of term ‘yield’ taken in different
fields. This is the same thing which is stated in the passage. From the other
options, text definition angle is wrong in (e). Option (d) is linking the term
with situations which is not correct. Option (a) and (c) are false.

5. (a) This is best option which
expresses the fact illustrated in passage that the market is ever changing.
Other options are generalized statements with no special linkage to passage.

6. (a) Let us examine the
validity of each and every option one by one – Only Indian is not right;
overseas acquisitions are also discussed in passage. Acquisitions are not
hostile always. This can be verified with the subsequent content of the
passage. Globalization is not given in passage. This option is totally out of
context.

7. (a) In option (b) ‘limit’ is
doubtful. Option (c) and Option (d) are incorrect and cannot be defined from
the passage. Option (e) applies too much caution which is not intended here.
Option (a) is only option which in combination with next statement and is
sensible.

8. (a) Implementation can be a
challenge for such a wide banking system of India but it cannot be impossible
or problem (supervisors are there to implement). It is foolish to implement on
trail basis on a vast scale. Option (e) can be true or false as passage does
not elaborate on it.

9. (a) A little reasoning is
required to solve the question. If a foreign bank is operating in a country,
then it shall be governed by the regulations of that country along with its
original county. Then only that country will allow it to operate. On this logic
option (d) can be rejected. Little extension of this logic discards the
possibility of audit in country of origin. Hence rule out (c). Success does not
depend on only policies of a country it demands a lot of other ingredients.
Reject (e). Option (b) is inappropriate as passage does not support it.