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TRANSCRIPT
DIRECTION (1-9): Read the following passage carefully and
answer the questions given below it.
The RBI’s two remarkably successful auctions for dollar-rupee
swaps indicate that this tool has been designed in such a way
that it meets the requirements of all stakeholders. Not only has
the auction helped the RBI meet its objective of infusing liquidity
into the system at a particularly challenging juncture and help
bolster forex reserves, it has also helped banks and corporates
put their dollar holdings to good use. The aim of the swap
arrangement was to infuse [A] ——————— liquidity into the
system, without disrupting either the foreign currency or bond
markets. Banks had to initially sell US dollars to the RBI at the
reference rate on the date of the auction and receive rupees in
return, which were to be used to meet credit demand. In the
second phase of the transaction, the amount in rupees, along
with the premium that was bid, had to be returned to the RBI at
the end of three years and the RBI had to return the dollars to the
banks. The enthusiasm displayed by banks in bidding in the two
auctions implies that the swap was commercially [B] —————
— for them. In the first auction conducted in the latter part of
March, bids worth $16.31 billion was received by the RBI, of
which $5.02 billion was accepted. The weighted average
premium in the first auction was ₹7.92. The second auction,
conducted this week, was a greater success, with bidding value
of $18.65 billion for the offer of $5 billion and the weighted
average premium of the bids at ₹8.43.
[C] It’s clear that the auction has provided a channel from which
entities in possession of dollars raised through overseas loans,
could earn additional revenue. Borrowers who wanted to hedge
their future cash-flows would have also founded the swap useful.
With borrowing rates in international markets ruled lower than the
annualised premium bid in the auctions, it would have also have
been possible to borrow dollars from overseas to deliver to the
central bank. Through the infusion of ₹34,561 crore in the first
auction and ₹34,874 crore in the second, the central bank has
ensured that liquidity conditions remain [D] benign around the
general elections. With an additional ₹25,000 crore of open
market operations planned in May, the economy is not likely to
be hampered by tight liquidity in the near term. Higher liquidity is
expected to facilitate better transmission of policy rate cuts. Since
the forex swap does not impact the spot market of the rupee, any
impact in the spot currency market is likely to be [E] —————
———. This move will also reduce pressure on bond yields.
The forex market will be benefited through the swap
arrangements as it helps bolster forex reserves at a time when
financial markets [F] is in a tumultuous due to raising crude
oil prices. Since the dollars purchased through the auction will
be a part of forex reserves for three years, it can be used by the
RBI in market interventions, if needed.
1. Which of the following cannot be inferred from the
passage?
a) Before the auction the RBI was not able to meet its
objective of infusing liquidity into the system.
b) Before the auction, banks and corporates didn’t put their
dollar holdings to good use.
c) The auctions for dollar-rupee swaps have been designed
to meet the requirements of either of stakeholders.
d) The aim of the swap arrangement was to withdraw
temporary liquidity from the system.
e) None of the above can be inferred
2. Which of the following words given in the option should
come at the place marked as [A] in the above paragraph
to make it grammatically correct and meaningful. Also,
the word should fill in the blanks given in the two
sentences below to make them contextually correct and
meaningful.
I. The tails are almost black and make up most handsomely
into trimmings, muffs, &c. Tails worked separately in
these forms are as rich and fine and more —————
— than any other fur suitable for a like purpose.
II. Used as carriage rugs and floor rugs, most ————— for
latter purpose and of fine effect.
(a) durable (b) dynamic (c) strong
(d) stout (e) All are correct
3. What were banks supposed to do under the Dollar-Rupee
swaps? Answer on the basis of the passage.
a) They are expected to infuse liquidity into the system.
b) They are expected not to disrupt either the foreign
currency or bond markets.
c) They had to initially sell US dollars to the RBI at the
reference rate on the date of the auction and receive
rupees in return.
d) They had to return the money to the RBI at the end of
three years.
e) All of the above.
4. Which of the following words given in the option should
come at the place marked as [B] in the above paragraph
to make it grammatically correct and meaningful. Also,
the word should fill in the blanks given in the two
sentences below to make them contextually correct and
meaningful.
I. We have recently been experimenting with heat meters,
to see whether the possibility of charging via their
readings is ——————.
II. I am saying that for small nations to be economically and
politically —————— is good news for peace.
(a) possible (b) viable (c) probable
(d) successful (e) feasible
710 SBI CL MN
5. Which one or more of the three sentences given in italics
[C] in the above passage contain/s an error? The number
of that sentence will be your answer. If all the sentences
are correct as they are, your answer will be (e) i.e. No
error.
A. It’s clear that the auction has provided a channel from
which entities in possession of dollars raised through
overseas loans, could earn additional revenue.
B. Borrowers who wanted to hedge their future cash-flows
would have also founded the swap useful.
C. With borrowing rates in international markets ruled lower
than the annualised premium bid in the auctions, it would
have also have been possible to borrow dollars from
overseas to deliver to the central bank.
(a) All A, B & C (b) Only A & B (c) Only A & C
(d) Only B & C (e) No error
6. Which of the following words can replace the word given
in bold in [D] in the above passage?
(a) gentle and kind (b) thought provoking
(c) whole-hearted (d) rabble-rousing
(e) soft-spoken
7. Which of the following can fit well into the blank created
in [E] in the above passage?
(a) short-lived (b) short-term (c) impermanent
(d) momentary (e) All are correct
8. Which of the following can replace the bold part of the
sentence given in [F] in the above passage? If the
question is correct as it is, your answer will be (e) i.e. No
correction required.
a) are in a tumult owing to rising crude oil prices
b) are in a turmoil due to raising crude oil prices
c) have in a turbulence because of arising crude oil prices
d) are in a turmoil due to rising crude oil prices
e) No correction required
9. Which of the following can best summarise the given
passage?
A. The tool has turned out to be a win-win for all stakeholders
B. The dollar-rupee swaps opens the possibility of big
opportunities for all stakeholders
C. The turmoil seems to a big hindrance to the dollar-rupee
swaps
(a) All A, B & C (b) Only A & B (c) Only A & C
(d) Only B & C (e) No error
Directions (10-13): In each of the questions given below a
sentence is given in which an/a idiom/phrase has been put
in BOLD. Five options are given below each such sentence.
You have to choose the option which best describes the
meaning of the phrase/idiom.
10. With the economy in tatters, another lengthy blog from the
finance minister to defend his failure and blame the previous
governments is in the offing.
a) Under consideration
b) Saved in the draft
c) In the printing stage
d) About to happen at some time in the near future
e) None of these
11. After the heated exchange of words, the manager adjourned
the town hall meeting sine die.
a) Resignation
b) Permanently
c) Without any future date/time for resumption
d) Written on stamp paper
e) None of these
12. After arguing with and embarrassing the CEO in front of all
staff, I think he burned his boat.
a) To do something that cannot be easily undone or
reversed in the future.
b) To burn one’s vehicle.
c) To burn one’s vehicle.
d) To set on fire.
e) No e of these
13. After the final bell rang the children ran amuck in the
corridors.
a) Ran for the mock test
b) Ran straight to the playground
c) Ran straight out of there classroom
d) To behave in wild and uncontrolled way
e) None of these
Directions (14-19): In the following sentences (1) as
STARTER is given. Rearrange the next sentences in the
proper sequence to form a meaningful paragraph; then
select the proper sequence given below them.
14. Rearrange the following sentences into a coherent
paragraph.
1. A third Saturday of anti-fuel-tax demonstrations,
A. In response, the French government cancelled a second
planned fuel-tax rise,
B. But protesters said this was not enough.
C. Infiltrated by violent provocateurs from the hard left and
the extreme right,
D. Saw windows smashed, cars ablaze and monuments
defiled in Paris.
(a) BACD (b) CDAB (c) DACB
(d) BADC (e) No arrangement required.
15. Rearrange the following sentences into a coherent
paragraph.
1. An hour proved to be a long time in British politics, as
Theresa May’s government suffered three rapid defeats
in the House of Commons over Brexit.
A. In his advice to the prime minister, the attorney-general
stated that the Northern Ireland “backstop” would “endure
indefinitely” if no new arrangement was agreed.
B. The government was held in contempt of Parliament, a
first in modern times, for not publishing the full legal
advice from the attorney-general concerning the
withdrawal agreement.
C. MPS also voted to have a direct say in what comes next
if the prime minister’s proposed deal is voted down on
11th of the next month.
(a) BCA (b) CBA (c) BAC
(d) ACB (e) No arrangement required
16. Rearrange the following sentences into a coherent
paragraph.
1. An advocate general of the European Court of Justice
advised,
A. At the request of some Scottish MPs, that Britain could
unilaterally revoke the Article 50 notification to leave the
European Union.
B. While not a final ruling by the ECJ,
C. It could provide an avenue of escape if Mrs May’s deal
fails to win over Parliament.
(a) BCA (b) CBA (c) BAC
(d) ACB (e) No arrangement required
17. Rearrange the following sentences into a coherent
paragraph.
1. A small anti-immigrant party, Vox, did well in elections in
Andalusia in Spain,
A. Entering the regional parliament there.
B. It is the first time that a far-right party has taken seats
C. In a Spanish parliament for more than 30 years.
(a) BCA (b) CBA (c) BAC
(d) ACB (e) No arrangement required
18. Rearrange the following sentences into a coherent
paragraph.
1. China’s ministry of science described the creation of the
world’s first gene-edited babies,
A. Mr He’s whereabouts are unclear.
B. as “shocking” and illegal.
C. A feat claimed by a Chinese scientist, He Jiankui,
(a) BCA (b) CBA (c) BAC
(d) ACB (e) No arrangement required
19. Rearrange the following sentences into a coherent
paragraph.
1. A Buddhist, Xuecheng, resigned from an advisory body
to China’s parliament,
A. Following accusations of sexual harassment.
B. In which he had held senior positions.
C. The monk stepped down as chairman of the official
Buddhist Association in August
(a) BCA (b) CBA (c) BAC
(d) ACB (e) No arrangement required
Directions (20-26): Read each sentence to find out whether
there is any grammatical error in it. The error is in only one
of the sentences. The number of that sentence is the answer.
(Ignore the errors of punctuation, if any.
20. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) After a briefing by the head of the CIA, senators in
America said they were certain that
b) Muhammad bin Salman, the crown prince of Saudi
Arabia,
c) ordered the killing of Jamal Khashoggi, a Saudi journalist,
in a consulate in Istanbul in October.
d) A Turkish court approved arrest warrants for two former
aides to prince over the killing.
e) No error.
21. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) It was another reminder of the oil cartel’s disunity.
b) Saudi Arabia, OPEC’s most important member,
c) has been trying to strangle
d) Qatar with a trade embargo.
e) No error.
22. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) Police in Israel recommended
b) that Binyamin Netanyahu be indict for bribery and fraud.
c) The prime minister and his associates have been the
subjects of several criminal probes.
d) Police have recommended indictments in three.
e) No error.
23. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) America reopened its embassy in Mogadishu, the capital
of Somalia.
b) Fighting between rebels and the government forced
America
c) to closing the embassy and airlift out its ambassador in
1991.
d) The move reflects Somalia’s progress, said the State
Department.
e) No error.
24. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) Lawmakers in Sudan expressed support for a
constitutional amendment
b) that would allow President Omar al-Bashir
c) to run for third term in 2020,
d) despite a two-term limit introduced in 2005.
e) No error.
25. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) South Africa’s parliament approved a report endorsing a
constitutional amendment
b) that would allow the expropriation of land without
compensation.
c) It can now start the process of making the change.
d) Land grabs in neighbouring Zimbabwe caused an
economical collapse.
e) No error.
26. Find out error in the following four sentences, if any. If
there is no error, your answer will be (e) i. e. No Error.
a) Cuba announced that people would be allowed to buy
internet subscriptions on their mobile phones.
b) Cubans have so far been restricted to use public hotspots
or cybercafés to get online.
c) The state-owned mobile-network operator will offer data
packages up to 4GB for $30,
d) about the same as the average monthly state wage.
e) No error.
DIRECTION (27-40): IN THE FOLLOWING QUESTIONS YOU
ARE ASKED TO DO AS DIRECTED.
Think of the upper [A] echelons of the money-management
business, and the image that springs to mind is of ——[B]——
private banks in Geneva or London’s Mayfair, with marble lobbies
and fake country-house meeting-rooms designed to make their
super-rich clients feel at home. But that picture is out of date. A
more accurate one would feature hundreds of glassy private
offices in California and Singapore that invest in Canadian bonds,
European property and Chinese startups—and whose gilded
patrons are sleepwalking into a political storm.
[C] ————————————. Personal investment firms that
roam global markets are looking for opportunities. Largely
unnoticed, family offices have become a force in investing, with
up to $4trn of assets—more than hedge funds and equivalent to
6% of the value of the world’s stockmarkets. As they grow even
bigger in an era of populism, family offices are destined to face
uncomfortable questions about how they concentrate power and
feed inequality.
[D] The concept is hardly new; John D. Rockefeller set up
his family office in 1882. But the number has exploded this
century. Somewhere between 5,000 and 10,000 are based in
America and Europe and in Asian hubs such as Singapore
and Hong Kong. Though their main task is to manage
financial assets, the biggest offices, some with hundreds of
staff, undertakes all sorts of other chores, from tax and legal
work to acting as high-powered butlers who book jets and
pamper pets.
[E] The costs of bringing such expertise in-mansion means
that they generally make sense only for those worth over
$100m, the top 0.001% of the global pile. Asian tycoons such
as Jack Ma of Alibaba has created their own fiefs. The
largest Western family offices, such as the one set up by
George Soros, an investor and philanthropist, oversee tens
of billions and are as muscular as Wall Street firms,
competing with banks and private-equity groups to buy
whole companies.
[F] Every investment boom reflects the society that spawned it.
The humble mutual fund came of age in the 1970s after two
decades of middle-class prosperity in America. The rise of family
offices reflects soaring inequality. Since 1980 the share of the
world’s wealth owned by the top 0.01% has risen from 3% to 8%.
As the founders of family firms receive dividends or the proceeds
of initial public offerings, they usually redeploy the cash. But
since the financial crisis there has been a loss of faith in external
money managers. Rich clients have taken a closer look at private
banks’ high fees and murky incentives, and balked.
These trends are unlikely to fade, as our Briefing explains. The
number of billionaires is still growing—199 newbies made the
grade last year. [G] Older entrepreneurs are preparing to cash
out, who created firms in the boom years after 1990 in the
emerging world. However, in America and China younger tech
entrepreneurs may soon float their companies, releasing a new
wave of cash to reinvest. Family offices’ weight in the financial
system, therefore, looks likely to rise further. [H] ———————
—. The most obvious of these is the least convincing—that family
offices have created inequality. They are a consequence, not its
cause. Nonetheless, there are concerns—and one in particular
that is worth worrying about.
The first is that family offices could —[I]— the stability of the
financial system. Combining very rich people, opacity and
markets can be explosive. lTCM, a $100bn hedge fund backed
by the super-rich, blew up in 1998, almost bringing down Wall
Street. [j] Scores of wealthy people fell about a Ponzi scheme
run by Bernie Madoff that collapsed in 2008. Still, as things stand
family offices do not look like the next disaster waiting to happen.
They have debt equivalent to 17% of their assets, making them
among the least leveraged participants in global markets. On
balance, they may even be a stabilising influence. Their funds
are usually deployed for decades, [K] ———————————
—.
[L] 1. The second worry is that family offices could magnify the
power of the wealthy over the economy.
A. The family-office industry is less concentrated than
mainstream asset management, which a few firms such as
BlackRock dominate.
B. But the aim is usually to diversify risk, not concentrate power,
by taking capital from the original family business and putting
it into a widely spread portfolio.
C. Compared with most fund managers, family offices have
welcome habits, including a longer-term horizon and an
appetite for startups.
D. This is possible: were Bill Gates to invest exclusively in
Turkey, he would own 65% of its stockmarket.
[M] It is the third danger that has most bite: that family offices
might have privileged access to information, deals and tax
evidence, allowing them to outperform ordinary investors. So
far there is little schemes for this. The average family office
returned 16% in 2017 and 7% in 2016, according to Campden
Wealth, a research firm, slightly lagging behind world
stockmarkets. Nonetheless, tycoons are well connected. [N]
Family offices are becoming much complex—a third have at
least two branches—making tax wheezes easier. Hungry
brokers and banks are rolling out the red carpet and pitching
deals with unlisted firms that are not available to ordinary
investors. If all this did lead to an entrenched, unfair
advantage, the effect, when compounded over decades,
would make wealth inequality disastrously worse.
27. Which of the following words best paraphrases the word
given in [A] in the paragraph?
(a) strata (b) contemporaries
(c) verisimilitudes (d) providence
(e) rhetoric
28. Which of the following words given in the options should
come at the place marked as [B] in the above paragraph
to make it grammatically correct and meaningful. Also,
the word should fill in the blanks given in the two
sentences below to make them contextually correct and
meaningful.
I. Design historian Maureen Footer chronicles how the
Enlightenment, Belle Époque, and Empire periods
inspired both spaces, effecting a scheme that, with the
incorporation of modern elements, felt iconic and inspired
rather than tired and —————————.
II. Kudos to the establishment for discarding that ————
—————— notion about reds being acceptable only
with certain foods, whites with others.
(a) fragrant (b) fusty (c) ambrosial
(d) redolent (e) aromatic
29. In the blank [C] given in BOLD the above paragraph, a
sentence is missing, which along with other four
sentences is given below. Find that sentence.
a) The economic slowdown following the global financial
crisis hit this way of doing things hard.
b) Global finance is being transformed as billionaires get
richer and cut out the middlemen by creating their own
family offices.
c) Firms looking to move components through their supply
chain or finished goods to retailers have two main options.
d) Most goods wend their way across the world using the
second option—containerised freight.
e) The non-domestic cargo business has revenues of
$2.6trn a year, according to BCG.
30. In the passage given, a sentence [D] is given in BOLD.
There may or may not be an error in one part of the
sentence. Choose the part which has an error in it as
your answer. If there is no error, option (e) will be your
answer.
a) The concept is hardly new; John D. Rockefeller set up his
family office in 1882.
b) But the number has exploded this century.
c) Somewhere between 5,000 and 10,000 are based in
America and Europe and in Asian hubs such as
Singapore and Hong Kong.
d) Though their main task is to manage financial assets, the
biggest offices, some with hundreds of staff, undertakes
all sorts of other chores, from tax and legal work to acting
as high-powered butlers who book jets and pamper pets.
e) No error.
31. In the passage given, a sentence [E] is given in BOLD.
There may or may not be an error in one part of the
sentence. Choose the part which has an error in it as
your answer. If there is no error, option (e) will be your
answer.
a) The costs of bringing such expertise in-mansion means
that they generally make sense only for those worth over
$100m, the top 0.001% of the global pile.
b) Asian tycoons such as Jack Ma of Alibaba has created
their own fiefs.
c) The largest Western family offices, such as the one set up
by George Soros, an investor and philanthropist, oversee
tens of billions and are as muscular as Wall Street firms,
d) competing with banks and private-equity groups to buy
whole companies.
e) No error.
32. Which of the following sentences, on the basis of [F]
given in BOLD in the above paragraph is/are correct?
a) The mutual fund was finally established in the 1970s after
two decades of middle-class prosperity in America.
b) The rise of family offices contributed to soaring inequality.
c) Family firms always redeploy the cash they receive as
dividends or the proceeds of initial public offerings.
d) Rich clients have taken a closer look at private banks’
high fees and murky incentives, and have readily
embraced them.
e) All are correct.
33. In the passage given, a sentence [G] is given in BOLD,
which may or may not have been written in a proper
order. Choose the sentence which grammatically and
meaningfully correct. If the sentence in the question is
correct as it is, choose option (a) as your answer.
a) Older entrepreneurs are preparing to cash out, who
created firms in the boom years after 1990in the emerging
world.
b) In the emerging world, older entrepreneurs are preparing
to cash out, who created firms in the boom years after
1990.
c) In the emerging world, those older entrepreneurs who
created firms in the boom years after 1990 they are
preparing to cash out.
d) In the emerging world, older entrepreneurs who created
firms in the boom years after 1990 are preparing to cash
out.
e) In the emerging world, those who created firms in the
boom years after 1990 those older entrepreneurs are
preparing to cash out.
34. In the blank [H] given in BOLD the above paragraph, a
sentence is missing, which is along with other four
sentences is given below. Find that sentence.
a) As it does, the objections to them will rise exponentially.
b) As a thumb rule, they will readily embrace the
opportunities.
c) Why will, as it goes well, they feel tormented after all.
d) Nonetheless, they will rise to the occasion.
e) Both (b) & (c)
35. Which of the following words given in the option should
come at the place marked as [I] in the above paragraph
to make it grammatically correct and meaningful. Also,
the word should fill in the blanks given in the two
sentences below to make them contextually correct and
meaningful.
I. This was followed by further reports of the committees of
both Houses, presenting evidence of the secret
manufacture of arms and of other proceedings calculated
to ——————— the public peace.
II. She agreed with their plan of an armed congress, and on
this idea both she and Fersen insisted with all their might,
Fersen leaving Brussels and going on a mission to the
emperor to try and gain support and checkmate the
émigrés, whose desertion the queen bitterly resented,
and whose rashness threatened to frustrate her plans
and ——————— the lives of her family.
(a) imperils (b) endanger (c) hazard
(d) jeopardy (e) expose
36. In the question in blank [J] given below, an idiomatic use
has been given, which has to be improved in the context
of the paragraph. If the expression is correct as it is, your
answer will be (e) i.e. No Correction Required.
a) Scores of wealthy people fell against a Ponzi scheme run
by Bernie Madoff that collapsed in 2008.
b) Scores of wealthy people fell for a Ponzi scheme run by
Bernie Madoff that collapsed in 2008.
c) Scores of wealthy people fell about with a Ponzi scheme
run by Bernie Madoff that collapsed in 2008.
d) Scores of wealthy people fell upon a Ponzi scheme run
by Bernie Madoff that collapsed in 2008.
e) No correction required
37. In the blank [K] given in BOLD in the above paragraph, a
part of the sentence is missing, which along with other
four sentences is given below. Find that part.
a) rendering them far much vulnerable to panics than banks
and many hedge funds.
b) allowing them far little exposed to panics than banks and
many hedge funds.
c) making them far more prone about panics than banks and
many hedge funds.
d) making them far less vulnerable to panics than banks and
many hedge funds.
e) making them far least insure for panics than banks and
many hedge funds.
38. In the blank [L] given in BOLD in the above paragraph,
sentence 1 as the STARTER of the paragraph has been
given. Rest of the sentences have been given in a
jumbled order. You are required to choose the correct
order from the sequences given below.
1. The second worry is that family offices could magnify the
power of the wealthy over the economy.
A. The family-office industry is less concentrated than
mainstream asset management, which a few firms such
as BlackRock dominate.
B. But the aim is usually to diversify risk, not concentrate
power, by taking capital from the original family business
and putting it into a widely spread portfolio.
C. Compared with most fund managers, family offices have
welcome habits, including a longer-term horizon and an
appetite for startups.
D. This is possible: were Bill Gates to invest exclusively in
Turkey, he would own 65% of its stockmarket.
(a) DABC (b) CDBA (c) ADBC
(d) ABCD (e) DCBA
39. The sentence given in [M] has four words given in BOLD.
Among the given bold words, which of the following
must replace each other to make the sentence
contextually correct and meaningful?
a) privilege — schemes
b) schemes — evidence
c) evidence — privilege
d) evidence — outperform
e) No replacement required
40. In the passage given, a sentence [N] is given in BOLD.
There may or may not be an error in one part of the
sentence. Choose the part which has an error in it as
your answer. If there is no error, option (e) will be your
answer.
a) Family offices are becoming much complex—a third have
at least two branches—making tax wheezes easier.
b) Hungry brokers and banks are rolling out the red carpet
and pitching deals with unlisted firms that are not
available to ordinary investors.
c) If all this did lead to an entrenched, unfair advantage, the
effect,
d) when compounded over decades, would make wealth
inequality disastrously worse.
e) No error.