Reading Comprehension Quiz

Reading Comprehension Quiz

Directions (Q. l-lO): Read the passage carefully, and answer the questions given below it. Certain words/ phrases have been given in hold to help you locate them while answering some of the questions. 

The world economy is slowly slipping into a l930s-like depression, said RBI governor Raghuram Rajan while advising against the competitive monetary easing by central banks. Though the RBI tried to downplay governor's remarks subsequently, the world economic situation is really bad. 
China‘s poor trade data show that it will go down on growth path faster than its policy makers would want. West Asia does not have a clue about how to deal with subdued crude price that is likely to continue for some more time Brazil and Russia are expected to post negative GDP growth. Japan poses a risk of inflation. 
Things seem to be somewhat better in the US because of better performance by its auto sector and comfortable employment data. 
In India, with changes in GDP computation method, things look okay, but only on paper. lndia‘s corporate sector has posted its worst results in FY2014~15. Uncertainties over monsoon remain. industry output (llP) grew by 2.7 Per cent (y~o~y) in May compared to 4.1 per cent (y~o-y) in 
April 20 l5. ‘ Corporate investment is not picking up, and india’s apart has been hovering around $3 00 billion for last three frseals. Continuing its declining trend over the last six months, India’s merchandise exports shrank by 20.2 per cent to $22.35 billion in May 2015. 
Given its high export/GDP ratio of over 23 per cent, India can’t easily escape the implications of an all-out global recession that’s looming. Yet India can still take several (internal) measures that can help minimise the damage. 
Given the size and complementarities of its provincial economies, implementation of GST can unleash India’s animal spirits by reducing cascading of taxes and freeing up interstate trade in merchandise. That will also create a pan-India common market of $2 trillion GDP and 1.2 billion People-a big attraction for any investor ---and add as much as 2 per cent to GDP. 
India needs to walk the talk on ease of doing business (given its poor ranking at 142) that is suffocating entrepreneurship. Liberalisation of FDI has become an instrument for export promotion in a world dominated by regional and global production networks! 
An overcautious approach of raising FDI caps in a phased manner, say, from zero per cent to 26 per cent to 49 per cent to 51 per cent (e. g. for defence or insurancel will simply not work given the country’s huge investment requirements, with $1 trillion for infrastructure devolepmeent alone. It also calls for an end to arbitrary tax demands or introduction of tax laws with retrospective effect. 
Given the high multiplier effect of public investment in infrastructure and huge infrastructure gap from roads, ports to power supplies, and stressed balance sheets of infrastructure companies, government will have to jumpstart the investment cycle. Increased public investment is likely to be followed by increased private investment. 
Another sector that can help is the troubled housing and construction sector. The sector’s growth is stuck by poor financial health of real-estate companies and highcapital gains taxes. Dominance of black money in the sector limits working-class participation. Slower regulatory approval affects the increase in supply of housing units. Delayed delivery of apartments by builders adds to the misery of home buyers who have to manage both EMls and rent. Builders manipulate the payment schedule in a way that long before the actual delivery of apartments they have already collected 95 per cent of receivables. Onesided apartment buyers’ contracts ensure that builders escape paying penalties for delayed delivery while they extract as much as 18 per cent per annum if the buyers delay payment. 

1. Which of the following statements support the view expressed by the author that the economy of India is not so good as it is projected on paper? 
(A) India’s export has not gone much beyond the $3 OO-billion mark in last three fiscals. 
(B) In comparison to April 2015 industry output (y-o-y) has declined in May 2015. 
(C) India’s merchandise exports have surged by 20.2 per cent in May 2015.
1)Only (A) and (B)    2) Only(B) and (C)    3) Only (A) and (C) 4) All (A), (B) and (C)   5) None of these 

2. Find the incorrect statements on the basis of the given passage. 
1) India’s corporate sector has registered its worst results in the financial year 2014-15. 
2) China’s trade data show that it will go down on growth path. 
3) The economy of the US is somewhat better in comparison to that of other countries of the world. 
4) The RBI has forecast a 1930s~iike depression in near future. 
5) None of these 

3. What will be the effect of implementation of GST as mentioned in the given passage? 
(A) It will reduce a series of taxes. 
(B) It will replace VAT. 
(C) It will facilitate interstat . trade in merchandise. 
1) Only (A) and (B)    2) Only (B) and (C)   3)Only (A) and (C) 4)All (A), (B) and (C)   5) None of these 

4. What measures should India take to minimise the consequences of imminent global depression? 
1) It should follow the path of‘ ease of doing business
2) For export promotion, India should liberalise FDI. 
3) India should do away with introduction of tax laws with retrospective effect. 
4) Only l)and 2)     5) All 1), 2) and 3) 

5. Which of the following statements with regard to housing and construction sector is not true in the context of the passage? 
(A) This sector is flooded with black money, which restricts working-class participation. 
(B) The growth of this sector is hindered by poor financial health of real-estate companies. 
(C) In case of delayed delivery of apartments, builders waive a certain amount of recoverable money from 
the buyers. 
1) Only (A)    2) Only (B)   3) Only (C)    4) Only (A) and (B) 5) Only (B) and (C) 

Directions (Q.6- 8): Choose the word/group of words which is MOST SIMILAR in meaning to the word! group of words printed in bold as used in the passage. 

6. Downplay 
1) emphasise  2) appreciate  3) appraise soften  5) devalue 

7. Subdued
1) fluctuating  2) flexible  3)controlled  4) high  5) uncertain 

8. Looming 
1) latest 2) Past 3) slowing 4)impending . 5) growing 

Directions (Q. 9-10): Choose the word group of words Which IS MOST OPPOSITE in meaning of the word / group of words printed in bold as used in the passage.

9. Unleash 
1)restrain   2) release   3) Vent    4) increase   5) protect

10. Manipulate 
1) manage   2)leave alone  3) shape  4) mould   5) change

1.1      2.4   3.3  4.5  5.3  6.4  7.3  8.4  9.1  10.2


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