Wednesday, 1 November 2017



Directions (1-10): 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.

Financial Inclusion (FI) is an emerging priority for banks that have nowhere else to go to achieve business growth. The viability of FI business is under question, because while banks and their delivery partners continue to make investments, they haven't seen commensurate returns. In markets like India, most programmes are focused on customer on-boarding, an expensive process which people often find difficult to afford, involving issuance of smart cards to the customers. However, large-scale customer acquisition hasn't translated into large-scale business, with many accounts lying dormant and therefore yielding no return on the bank's investment. For the same reason, Business Correspondent Agents, who constitute the primary channel for financial inclusion, are unable to pursue their activity as a full-time job. One major reason for this state of events is that the customer on-boarding process is often delayed after the submission of documents (required to validate the details of the concerned applicant) by the applicant and might take as long as two weeks. By this time the initial enthusiasm of applicants fades away. Moreover, the delivery partners don't have the knowledge and skill to propose anything other than the most basic financial products to the customer and hence do not serve their banks"' goal of expanding the offering in unbanked markets.


Contrary to popular perception, the inclusion segment is not a singular impoverished, undifferentiated mass and it is important to navigate its diversity to identify the right target customers for various programmes. Rural markets do have their share of rich people who do not use banking services simply because they are inconvenient to access or have low perceived value. At the same time, urban markets, despite a high branch density, have multitude of low wage earners outside the financial net. Moreover, the branch timings of banks rarely coincide with the off-work hours of the labor class.

Creating affordability is crucial in tapping the unbanked market. No doubt pricing is a tool, but banks also need to be innovative in right-sizing their proposition to convince customers that they can derive big value even from small amounts. One way of doing this is to show the target audience that a bank account is actually a lifestyle enabler, a convenient and safe means to send money to family or make a variety of purchases. Once banks succeed in hooking customers with this value proposition they must sustain their interest by introducing a simple and intuitive user application, ubiquitous access over mobile and other touch points, and adopting a banking mechanism which is not only secure but also reassuring to the customer. Technology is the most important element of financial inclusion strategy and an enabler of all others. The choice of technology is therefore a crucial decision, which could make or mar the agenda. Of the various section criteria, cost is perhaps the most important. This certainly does not mean buying the cheapest package, but rather choosing that solution which by scaling transactions to huge volumes reduces per unit operating cost. An optimal mix of these strategies would no doubt offer an innovative means of expansion in the unbanked market.

1. Which of the following facts is true as per the passage?
(1) People from rural areas have high perceived value of banking services.
(2) Cost is not a valid criterion for technological pack selection for financial-inclusion initiatives.
(3) The inclusion segment is a singular impoverished_ undifferentiated mass.
(4) The branch timings of banks generally do not coincide with the off-work hours of the labour class in urban markets
(5) All the given statements are true

2. According to the passage, for which of the following reasons do the delivery partners fail to serve their bank-‘s goal to expand in the unbanked markets?
(A) They do not have adequate client base to sell they financial products.
(B) They do not have adequate knowledge and skills explain anything beyond basic financial products to the customers.
(C) They do not have the skills to operate advanced technological aids that are a prerequisite to tap the unbanked-market.

1) Only (B)  
2) Only (C)
3)All (A), (B) & (C) 
4) Only (A)
5) Both (B) and (C)

3. According to the passage, for which of the following reasons is the viability of financial inclusion under question?
(1) Banks always prefer the cheapest package (to cut cost) while making a choice of technology to be used.
(2) The Business Correspondent Agents are highly demotivated to pursue their activity as a full-time job.
(3) The investments made by banks and their delivery partners are not yielding equal amounts of returns.
(4) Banks do not have adequate number of delivery partners required to tap the unbanked market.
(5) Banks do not have adequate manpower to explore the diversity of the unbanked market and thereby identify the right target customers for various programs.

4. In the passage, the author has specified which of the following characteristics of the customer on-boarding process?
(1) It involves collection of documents from the applicants in order to validate their details.
(2) It involves issuance of smart cards to the customers.
(3) It suffers from latency as it takes a long time after submission of documents by the customer
(4) It is an expensive process which people find difficult to afford.
(5) All of the given characteristics have been specified

5. What did the author try to highlight in the passage?
(A) The ailing condition of financial inclusion business at present
(B) Strategies that may help banks expand in the unbanked market
(C) Role of government in modifying the existing financial-inclusion policies
(1) Both A & B 
2) All A, B, & C
(3) only C     
(4)Only A
(5) Only B

6. According to the passage, which of the following ways may help banks sustain the interest of their customers after hooking them?
(A) Adoption of a banking mechanism which is not only secure but reassuring to the customers
(B) Increasing the number of delivery partners in rural market
(C) Introduction of a simple and intuitive user application
(1) Only (A) 
(2) Only (C)
(3) Only (B) 
(4) All (A), (B) and (C)
5) Both (A) and (C)

For Q (7-8): Choose the word which is MOST SIMILAR in meaning to the word printed in bold as used in the passage.

7. Multitude
1) Impoverished  
2) Handful
3) Acknowledged 
4) Plenty
5) Solitude

8. Ubiquitous
(1) Quintessential  
(2) Popular
(3) Omnipresent 
(4) Simplified
(5) Abnormal

For Q (9-10): Choose the word which is MOST OPPOSITE in meaning to the word printed in bold as used in the passage.

9. Dormant
1) Emaciated
2) Pertinent
3) Cornered
4) Rejected 
5) Active

10. Delayed
1) Perturbed       
2) Popularised
3) Expedited
4) Stabilised       
5) Represse

Directions: (11 - 20): Read the following passage carefully and answers the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions.

Simple definition of On Line Shopping or Shopping on the Web is enabling you to buy and sell through your computer on –line using Web or Internet environment. One reason people like without a salesperson because you can browse inside the shop for number of hours at your leisure time without a salesperson peering over the shoulder and making unwanted recommendations. As a customer, we may find this approach convenient and less time consuming, but how does this affect the economy as a whole? Is it safe to pay credit card online? Is buying and selling products over the internet considered as a risky business for merchants? Is the Web going to replace old-fashioned stores? Is virtual shopping really is better than the real thing? Cyberspace is a vast territory where computers meet and exchange information. In this 21st century, cyberspace has already to your computer will look you into wealth of goods and services.


In your home, modern box attached to your computer will look you into wealth of goods and services. Not only does it allow you to talk to your friends on the other side of the world, but also allows you to watch a movie, buy airline tickets, pay bills and even get cash, People in developed countries like U.S. and Canada have already started using On Line Shopping as a routine mode of their purchasing goods and services. Internet shoppers still believe that there is no secure and convenient way of paying on the Internet. Consumers are concerned with two main security fears. They are worried that their credit card information is jeopardizing while travelling over the net. They also express concern over data privacy whereby the vendors and blanking institutions can tamper with the data and easily record their purchasing habits. These fears over privacy and security have kept E- Commerce from taking off.

11. What does the passage imply by the word ‘Virtual shopping’?
(1) shopping widely
(2) shopping spree
(3) literal shopping   
(4) net shopping
(5) a wider perspective of e-com.

12. Why is it risky to pay online?
(1) It reveals the identity of the buyer
(2) It intrudes upon the privacy of the buyer
(3) The buyer is apprehensive of his credit card details going over the net
(4) The merchants may record the buyer’s purchasing habits.
(5) None of these

13. Which of the following statement is/are TRUE______?
(A) Cyberspace has opened an immense wealth of services but has affected the economy too.
(B) Data privacy is no longer a thing of the past.
(C) People in developing countries use online shopping as a routine mode
(1) Only a  
(2) Only b and c 
(3) a, b and c
(4) Only c  
(5) None of these

14. What is the authors view regarding shopping on the web?
(1) shopping on the net makes the buyers wary of financial transactions.
(2) shopping in the stores is on obsolete idea.
(3) Net shopping has affected our economy on the whole
(4) Payment by credit card easily outnumbers cash transactions.
(5) All of the above

15. Why has online shopping caught on so much in the U.S.A. and Canada?
(1) The developed countries can well afford to indulge in such luxuries
(2) The pace of life is superfast in these countries
(3) Virtual shoppers need not hide their credit card information.
(4) Banks etc do not tamper with the financial details of the net-shoppers
(5) None of these


For Qs (16-18): Choose the word that is most nearly the SAME in meaning to the word as used in passage.

16. Environment
(1) provision  
(2) conditions 
(3) circumstantial
(4) department 
(5) enclave

17. Browse
(1) look through 
(2) enjoy
(3) examine leisurely
(4) nibble 
(5) spend

18. Modern
(1) gadget   
(2) appliance 
(3) device
(4) apparatus 
(5) equipment

For Qs (19-20): Choose the word that is most nearly the OPPOSITE in meaning to the word as used in passage.

19. Jeopardized
(1) safe  
(2) risked
(3) benefit
(4) secure 
(5) endangered

20. Peering
(1) leaning   
(2) looking 
(3) staring
(4) peeking 
(5) peeping

Chief Economic Adviser Arvind Subramanian’s first Economic Survey is notable for three main reasons. First, the overall sense of optimism that it exudes — and justifiably so — on the economy and its prospects in the medium term. Second, the emphasis on fiscal discipline, quality of expenditure and public investment, mainly in the Railways, to give a boost to the economy. And finally, the thrust on Prime Minister Narendra Modi’s pet schemes of Jan Dhan Yojana and Direct Benefit Transfers as means of eliminating leakages in the subsidy mechanism and ensuring that subsidies reach those who deserve it. Alongside, Mr. Subramanian has also raised a question mark over the new data series on GDP growth announced a couple of weeks ago, pointing out that India is not a ‘tiger economy’ yet as the data would have us believe. India’s is a recovering economy rather than a surging one, the Survey says, pointing out that the numbers seem difficult to reconcile with other developments in the economy. Other major economic data such as on industrial output and trade and agriculture, coupled with anecdotal evidence, point to an economy that is on the mend gradually and not to one that is galloping away on growth. That said, there is little reason to question the Survey’s conclusion that India is now in a sweet spot thanks to a government that has a mandate for reform and a benign external environment that has had a favorable impact on the current account deficit (CAD) and inflation. Indeed, if India does achieve the projected CAD of 1 per cent in 2015-16, that would be in large part due to the falling commodity prices, particularly of crude oil.


The Survey’s projection of a 8.1-8.5 per cent GDP growth in 2015-16 is credible given the present economic environment, though the bets would be more on the lower end of the band. Mr. Subramanian has reiterated his advocacy for public investment to act as a booster dose. And, interestingly, he has picked on the Railways as the “growth locomotive”, arguing that reversing the cycle of under investment in the Railways can do wonders to the economy. This ties in with this week’s Railway budget and its emphasis on long-term investment; in fact, it is tempting to conclude that the increase in gross budgetary support to the Railways by a third to about Rs.40,000 crore is evidence of this policy in action. Railways could be to the Narendra Modi government what roads were to the Vajpayee administration. The Survey has clear advice for Finance Minister Arun Jaitley: control expenditure through subsidy reduction, improve the quality of expenditure by spending more on investment and less on consumption and borrowing only for investment. Will Mr. Jaitley act on this in his Budget today?

Q.21 Which of the following is not the significant highlight of the economic survey?
(a) It infuse the hope of revival of the Indian Economy.
(b) The Direct benefit transfer schemes will ensure plugging of leaking funds.
(c) Government will control the expenditure in Railway.
(d) Austerity measures will be adopted by Govenrment.
(e) None of these

Q.22 What can be the reason for the reversal of cycle of under investment in Indian Railway?

Q.23 Why Arvind Subramaniam is skeptical about India GDP growth rate?

Q.24 Which external factors had a favourable impact on CAD and how?

Q.25 What measures Economic Survey suggested to the Finance Minister of India?

Directions (26-28):  Which of the following words is most opposite in meaning of the word printed in bold as used in the passage?

Q.26 Anecdotal
(a) abstract
(b) informal
(c) unreliable
(d) unscientific
(e) based on hearsay

Q.27 Benign
(a) harmless
(b) safe
(c) adverse
(d) white
(e) inoffensive

Q.28 Reiterated
(a) duplicate
(b) repeat
(c) reprise
(d) redo
(e) new

                               
Answers: 
1. 4
2. 1
3. 3
4. 5
5. 1
6. 5
7. 4
8. 3
9. 5
10.3
11. 4
12. 3
13. 1
14. 3
15. 2
16. 1
17. 3
18. 2
19. 4
20. 5
21. c
26. a
27. c
28. e             

                  
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