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Wednesday, 2 May 2018

English Language For SBI Clerk Prelims | 02- 05 - 18

Mahendra Guru : Online Videos For Govt. Exams
English Language For SBI Clerk Prelims | 30- 04 - 18
Developing a solid foundation in English will not only help you to increase your knowledge but will also help you to score better in the exam. English is a major section in exams which candidate fears a lot. To boost your preparation, MahendraGuru is providing English Quiz for SBI Clerk, RBI Assistant, IBPS Clerk and IBPS SO Exams exams.

With Mahendra Guru, be the first to know the changes in Grammar which keep you updated through its Practice sets.These practice sets will give you power in building your bright career.


Q.1-5. 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 questions. 

The bad loan problem in the banking sector is likely to linger for a long while. Among other things, it will affect the sector’s ability to finance productive sectors of the economy. The Reserve Bank of India (RBI), on its part, is trying different things to help the banking sector, but conditions at the aggregate level are not improving as desired. As a recent Credit Suisse report noted, on top of 12% impaired assets, another 4.5% of loans are estimated to be stressed—and expecting a turnaround in the asset quality cycle would be premature. 

It is now being reported that the banking regulator under new governor wants to give more flexibility to banks to deal with the issue of bad loans. It appears that the current bad loan problem is becoming a difficult learning experience for RBI and it is not very sure as to what exactly needs to be done. When one option doesn’t work, it comes up with another one or tweaks the existing one in order to make things easier for the banking system. But the problem is so deep at the aggregate level that RBI’s measures are not making much of a difference. 

For instance, in 2014, RBI came up with a scheme that allowed banks to extend the maturity of loans given to companies in the infrastructure sector. In 2015, it gave banks the option of converting a part of the debt into equity and taking a controlling stake in stressed companies. The regulator introduced another option called the Scheme for Sustainable Structuring of Stressed Assets, or S4A. This allows lenders to determine the sustainable level of debt for a stressed company and split the outstanding debt into sustainable debt and equity with some caveats. The idea again is that as the company turns around, equity will provide an upside to the lenders. But these options are not easy to implement on the ground and there is no guarantee that banks will be able to recover the money. 

A report showed that lenders had been left with some difficult choices after they failed to find a buyer for debt-laden Essar Steel. The options they have are to either take an equity stake in the company or auction bad loans worth Rs44,000 crore to asset reconstruction companies (ARCs).Both are difficult choices. Selling loans to the ARCs will attract a significant amount of haircut and an equity stake comes with its own uncertainties. This is just an illustration of how difficult things have become for the banking sector that is sitting on toxic loans worth Rs6.3 trillion. 

Q.1. The regulator introduced another option called the Scheme for 

1. Sustain Sequential of Stressed Assets, or S4 

2. Summing Silhouette of Stressed Assets, or S4A 

3. Sustainable Structuring of distressed Assets, or S4A 

4. Sustainable Structuring of Stressed Assets, or S4A 

5. Sustainable Structuring of Silver Assets, or S4A 

Q.2. Choose the appropriate title for the above passage? 

1. Good loans: back to the drawing board 

2. Bad loans: back to the drawing room 

3. Bed loans: calling drawing board 

4. Bed loans: back to pavilion 

5. Bad loans: back to the drawing board 

Q.3. Which of the following statement is TRUE according the passage? 

1. The regulator introduced another option called the Scheme for Sustainable Structuring of Stressed Assets, or S4A. 

2. S4A prohibits allows lenders to determine the sustainable level of debt for a stressed company. 

3. The idea is that as the company turns around, equity will provide a downside to the lenders. 

4. There is a guarantee that banks will be able to recover the money. 

5. The bad loan problem will never affect the sector’s ability to finance productive sectors of the economy. 

Q.4. The bad loan problem in the banking sector will affect the sector’s ability to finance productive sectors of the- 

1. agriculture 

2. service industry 

3. financial market 

4. economy 

5. stock exchange 

Q.5. Which of the following statement is NOT TRUE according the passage? 

1. A report showed that lenders had been left with some difficult choices after they failed to find a buyer for debt-laden Essar Steel. 

2. The options are to either take an equity stake in the company or auction bad loans worth Rs44,000 crore to asset reconstruction companies (ARCs). 

3. Selling loans to the ARCs will attract a significant amount of haircut and an equity stake comes with its own uncertainties. 

4. The banking sector is sitting on toxic loans worth Rs 9.3 trillion. 

5. As a recent Credit Suisse report noted, on top of 12% impaired assets, another 4.5% of loans are estimated to be stressed—and expecting a turnaround in the asset quality cycle would be premature. 

Q.6. A report showed that lenders had been left with some difficult choices after they failed to find a buyer for? 

1. debt-laden Ericsson 

2. debt-laden Tata Steels 

3. debt-laden Birla Firms 

4. debt-laden Essar Steel 

5. debt-laden reconstruction company 

Q.7. Choose the word which is most nearly the OPPOSITE in meaning as the word printed in bold as used in the passage. 

IMPAIRED 

1. damaged 

2. harmed 

3. defective 

4. perfect 

5. broken 

Q.8. Choose the word most SIMILAR in meaning to the word printed in bold, as used in the passage. 

ILLUSTRATION 

1. exalt 

2. praise 

3. elucidation 

4. laud 

5. commend 

Q.9. Choose the word which is most nearly the OPPOSITE in meaning as the word printed in bold as used in the passage. 

TWEAKS 

1. abandoned 

2. derelict 

3. lonely 

4. spoil 

5. isolated 

Q.10. Choose the word most SIMILAR in meaning to the word printed in bold, as used in the passage. 

IMPLEMENT 

1. execute 

2. unable 

3. inept 

4. incapable 

5. unskilled 

ANSWERS 

Q1. (4) 

Q2. (5) 

Q3. (1) 

Q4. (4) 

Q5. (4) 

Q6. (4) 

Q7. (4) 

Q8. (3) 

Q9. (4) 

Q10. (1) 

 


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