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Bank Exam: Important Reading Comprehension Quiz 20 Dec 2017

Dec 19, 2017 18:22 IST
    Bank Exam: Important Reading Comprehension Quiz
    Bank Exam: Important Reading Comprehension Quiz

    It has been observed in the recent banking examinations that questions on Reading Comprehension come from passages taken from newspapers such as The Times of India, The Economic Times, The Business Line, The Business Standard etc. Here is the quiz based on an article taken from the newspaper ‘The Hindu’.

    Question (1-10): Read the following passage carefully and answer the questions that follow. Some words / phrases are printed in bold in the passage in order to help you trace them while answering some of the questions.

    Companies with greater participation of women in decision-making roles generate higher market returns and superior profits, a Credit Suisse Research Institute report has said.

    “The higher the percentage of women in top management, the greater the excess returns,” said the CS Gender 3000 report which evaluated 27,000 senior managers at more than 3,000 companies globally.

    “From year-end 2013 to mid-2016, the ‘out-performance’ of companies with women in 25 per cent of senior positions is a CAGR of 2.8 per cent,” the report said. Companies which with women in 50 per cent of decision-making roles had a CAGR of 10.3 per cent. This compares with the 1 per cent annual decline for the MSCI ACWI (a measure of equity market performance) in the same period.

    India saw a decline in management diversity to 7.2 per cent (7.8 in 2014). India is the second-lowest in A-PAC in terms of female representation at a senior management level, behind Japan and South Korea (both at 2.3%).

    “Sales growth at the 61 companies that make up the 50% Club has averaged 8 per cent since 2008 as against to a slowdown of 20 basis points for the MSCI ACWI on a fully adjusted basis,” the report said.

    “The out-performance continues for EPS growth with 12 percent annually against 9 percent for MSCI ACWI on a fully adjusted basis since 2008,” it added.

    As per this report, the market is willing to pay a 19 per cent premium price to book multiple for 50% Club companies with a female CEO. “These companies show REO 19 per cent higher on an average and a 9 per cent higher dividend payout,” the report added.

    The report said that the Asia Pacific region had seen significant progress in gender diversity. Of the 1,400 companies analyzed in 12 markets there has been considerable improvement with a 60 per cent rise in gender diversity at the boardroom level from 2010 to 2015.

    In India, the number of women on boards has doubled from 5.5 per cent in 2010 to 11.2 per cent in 2015, closing the gap with global average of 14.7 per cent.

    1. Which among the following is / are true regarding the Credit Suisse report that has been discussed in the passage?

    a)      The report only about female professionals working in various financial sector organizations and that is why, the sample size is too small.

    b)      The report focuses on around 27000 companies but that is only in the developed countries in the world.

    c)       The report has taken into account views of more than 5000 senior managers in the whole process.

    d)      Both (1) and (2)

    e)      Both (1) and (3)

    Solution: Option (c)

    Explanation: The passage talks about the CS Gender 3000 Report which is about the views shared by around 27000 senior managers across the globe from various fields and around 3000 companies globally. This makes only option (3) correct among the given options since the report has taken into account views of around 27000 senior managers in the whole process.

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    2. Which among the following best summarizes the basic finding of the report?

    a)      Women are better decision makers when it comes to certain professions but for others, men should be preferred over women candidates.

    b)      Women are better decision makers resulting in more profits and revenue for companies with women at helm.

    c)       Women candidates are more comprehensive in their approach and that is why, they hesitate to take quick decisions.

    d)      Both (1) and (3)

    e)      Other than those given in options

    Solution: Option (b)

    Explanation: The passage clearly states that the basic and primary finding of the report is that the companies in which there are women managers and chairmen have posted higher profits and revenue in the recent years. That makes it obvious that women are better decision makers compared to men as they are thorough and meticulous in their approach most of the time.

    3. Which among the following best describes the role of women in the annual growth trajectory of companies reviewed?

    a)      Women have generated most of the profits in all the companies reviewed though the junior most management consisted mostly of male members.

    b)      There is ego clash if a board consists of both female and male members but women are more comfortable and efficient while dealing with emotional situations.

    c)       It has been observed that if a company has double the representation of women compared to other, the annual growth rate has seen a five-fold jump.

    d)      It is seen that women managers are stricter with performance review compared to their male counterparts making it impossible for candidates to skip work.

    e)      Other than those given in options

    Solution: Option (c)

    Explanation: According to the passage, companies in which the representation of women is around 25 percent has seen CAGR of around 2.8 percent whereas in case of companies with 50 percent representation has seen the same grow by more than 10 percent. The other options are not suitable since no such thing is mentioned in the passage regarding ego clash or junior management of the companies reviewed.

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    4. Which among the following regions has seen the highest growth in the gender diversity component in the recent years?

    a)      European Union

    b)      North American Region

    c)       South American Region

    d)      Asia Pacific Region

    e)      Other than those given in options

    Solution: Option (d)

    Explanation: According to the passage, the region which has contributed the most to the astounding success of increasing gender sensitivity and diversity is Asia Pacific Region. This region has seen around 60 percent growth of gender diversity in the boardroom level from 2010 to 2015. This has been observed from surveys carried out in 12 markets in the region by Credit Suisse.

    5. Which among the following is / are true regarding the condition of women in workplace in India as per the report of the survey?

    a)      India has seen the representation of women in the boardroom level jump to double digits in the last few years

    b)      The increase is almost double in the last 5 years regarding the representation of women in the companies operating in India

    c)       India is well above the global average of women representation in companies at the boardroom and CEO level

    d)      Both (1) and (2)

    e)      All the above

    Solution: Option (d)

    Explanation: According to the passage, India has experienced a jump from 5.5 percent to 11.2 percent regarding the representation of women in its companies and this has been the case in the last 5 years starting from 2010. Apart from this fact, India has also been able to close the gap on gender diversity in companies in the global arena since the global average of the same is around 14.7 percent as of the present day scenario.

    6. Which among the following countries has seen the lowest representation of women at the boardroom level in the Asia Pacific Region as per the Credit Suisse Report?

    a)      India

    b)      South Korea

    c)       China

    d)      Japan

    e)      Both (2) and (4)

    Solution: Option (e)

    Explanation: According to the report published by Credit Suisse regarding gender sensitivity in companies of the world, India has seen the sharpest decline in female representation in 2008 when the same nosedived to 7.8 percent and it is the second lowest country in this regard in the region behind Japan and South Korea both having representation of 2.3 percent in the senior management level in its companies.

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    7. Which among the following is similar in meaning to the word ‘generate’ as used in the passage?

    a)      Accustom

    b)      Nullify

    c)       Prepare

    d)      Produce

    e)      Other than those given in options

    Solution: Option (d)

    Explanation: The word has been used in the passage that the companies with higher female representation produce more revenue as per the Credit Suisse Report published recently. This makes option (4) the right choice among the given options.

    8. Which among the following is similar in meaning to the word ‘evaluated’ as used in the passage?

    1. Access
    2. Assess
    3. Assist
    4. Ascend
    5. Other than those given in options

    Solution: Option (2)

    Explanation: The given word has been used in the passage in the context that the Credit Suisse Report has assessed the companies in order to prepare the data it has. Therefore, option (2) is the right choice among the given options.

    9. Which among the following is opposite in meaning to the word ‘diversity’ as used in the passage?

    a)      Uniformity

    b)      Necessity

    c)       Academic

    d)      Ritualistic

    e)      Other than those given in options

    Solution: Option (a)

    Explanation: The word has been used in the passage in the sense that the gender diversity increases the chances of profit making of a company. Therefore, different genders make it possible according to the passage and this makes option (1) the right choice among the given options since it means that everything is same and there is no diversity.

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    10. Which among the following is opposite in meaning to the word ‘closing’ as used in the passage?

    a)      Opening

    b)      Increasing

    c)       Reducing

    d)      Horrifying

    e)      Other than those given in options

    Solution: Option (b)

    Explanation: The word has been used to indicate that the gap between the Indian average and the global average in terms of female representation at boardroom levels is decreasing day by day as compared to the same five years ago. This makes option (2) the right choice among the given options as the opposite of the given word.

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    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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