CMAT Verbal Ability Practice Questions Set-2: This practice set has 10 questions with their answers & explanatory answers covering topics from the areas of Verbal Ability.
Directions (1 - 3): Read the following passage and answer the questions that follow:
For the first time in India’s banking sector, the Reserve Bank of India is giving out differentiated banking licenses. The in-principle go-ahead given to 11 ‘payments banks’ is, by the RBI’s own admission, an experiment — the latest in a long series of attempts to take banks to the unbanked. The push towards financial inclusion started with the nationalization of 14 commercial banks in July 1969 through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969. Then a second round came in 1980, involving six more commercial banks. With a view to economically mainstreaming rural areas, the Indira Gandhi government established regional rural banks by means of an ordinance in 1975. But even 45 years later, all these attempts have had little success in expanding banking coverage to the desired extent and scale: only 7 per cent of India’s villages have a branch of a rural or commercial bank. The policymakers seem now to have finally understood that banking inclusion cannot be just one among many businesses of a bank: it has to be the core business. The licensing condition that puts a Rs. 1-lakh cap on deposits that payments banks can receive from customers defines the market they will target — primarily the unbanked population. The RBI expects payments banks to target migrant labourers and the self-employed, besides low-income households, offering low-cost savings accounts and remittance services so that those who now transact only in cash can take their first step into the formal banking system.
1. According to the passage, the initiative taken by RBI for granting Differentiated Banking Licenses Policy is:
a) Allowing Licenses to Private Banks.
b) Allowing Licenses to Foreign Banks.
c) Giving green signal to open payment banks.
d) Allowing Licenses to Foreign Institutional Investors (FIIs).
2. Which one of the following statements is not true according to the passage?
a) In 1969, 14 Commercial Banks were nationalized.
b) The ordinance for Banking Companies (Acquisition and Transfer of Undertakings) was introduced in 1969 to maintain the monopoly of government banks.
c) In 1975, regional rural banks were established.
d) In 1980, 6 more commercial Banks were nationalized.
3. According to the passage, the target customers for the Payment Banks are:
a) High income households
b) Giant Corporates and Entrepreneurs
c) Migrant Labourers
d) Middle class income group
Directions (4 - 5): Each question below has a blank indicating that something has been omitted. Choose the set of words for the blank which best fits the meaning of the sentence as a whole.
4. There should be modern storage facilities for ____________ commodities, rural infrastructure must be improved and ____________ reforms implemented in the agricultural marketing system.
a) Imperishable, Moderate
b) Perishable, Extrinsic
c) Imperishable, Secondary
d) Perishable, Radical
5. Transfer price is the amount used in ____________ for transfer of goods or services from one place to another or from one company to another which belongs to the same ____________ company.
a) Accounting, Parent
b) Availing, Subsidiary
c) Answering, Subordinate
d) Working, Subsidiary
Directions (6 - 7): In each of the following questions there are three parts a, b, and c, among which one part is erroneous. Find out which part of the sentence has an error and mark (d) if no error is found. Ignore punctuation errors.
6. The audit committee has requested him (a)/ not to take any action unless and until (b)/ he don’t see all the documents (c).
7. There is nothing that does annoy me (a)/ more than watching other people sitting about (b)/ doing nothing when I am working (c).
Directions (8 - 10): In each of the following questions, the first word is given in capital letters followed by four other words, one of which is either synonym or antonym of the first word. Find the word.
1. (c) 2. (b) 3. (c) 4. (d) 5. (a) 6. (c) 7. (b) 8. (b) 9. (b) 10. (a)
The in-principle go-ahead given to 11 ‘payments banks’ is, by the RBI’s own admission, an experiment — the latest in a long series of attempts to take banks to the unbanked.
In 1969, 14 Commercial Banks were nationalized through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance. Hence, option (b) is incorrect.
The RBI expects payments banks to target migrant labourers and the self-employed, besides low-income households.
Remove ‘don’t’ from the sentence.
Replace ‘about’ by ‘around’.
Clandestine means hidden and hence forthright is the appropriate antonym.
Both ‘Converged’ and ‘Concentrated’ means something coming together from different directions so as eventually to meet.
Indigenous means innate or original and hence, acquired is the exact opposite word.