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

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.