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CMAT Verbal Ability Practice Questions Set-6

Jan 4, 2016 15:50 IST

    CMAT Verbal Ability Practice Questions Set-6: 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:

    After being the leading economy in the world for over two decades with its exports-led economic growth model, China has finally been admitted into the global currency elite of the International Monetary Fund’s (IMF) reserve currency list. From October next year, the Yuan or Renminbi (RMB), will form part of the “basket” of currencies from which the IMF derives the value of its own reserve asset, the Special Drawing Rights or SDRs. The basket of currencies includes the US dollar, British pound, euro and the Japanese yen.

    But Yuan’s entry into the IMF’s elite basket is fraught with fears – not completely unfounded though. First, China’s model of success from 1979 has been based on trade surpluses and domestic investment. Now, the leadership would loathe changing that even though domestic growth has slowed down and there is a glut in much of the infrastructure sector. The Chinese leadership is also known for its propensity to devalue the Yuan often to make the country’s exports cheaper, which in turn led to its huge trade surplus. The other
    elite countries are all market democracies, with well-established rule of law. These institutional advances preceded their becoming issuers of currencies dependable and liquid enough for other countries to use them as reserves.

    1. Which economic growth model has been followed by China over the last two decades?

    a) Imports-led economic growth model

    b) Exports-led economic growth model

    c) Export and Import led economic growth model

    d) Business growth model

    2. According to the passage, what does global currency elite group constitute of?

    a) Basket of Investment Portfolio from which the IMF derives the value of Special Drawing Rights.

    b) Basket of Investment Portfolio from which the World Bank derives the value of Special Drawing Rights.

    c) Basket of currencies from which the World Bank derives the value of Special Drawing Rights.

    d) Basket of currencies from which the IMF derives the value of Special Drawing Rights.

    3. According to the passage, why does the Chinese leadership used to devalue its currency ‘Yuan’ earlier?

    a) To achieve trade deficit.

    b) To make imports cheaper.

    c) To make exports cheaper.

    d) To hinder economic growth.

    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. The aura of ______________ was ______________ by the party’s massive loss in the elections.

    a) Invincibility, Dented

    b) Timidity, Enhanced

    c) Corruption, Increased

    d) Meekness, Declined

    5. India and the US have entered into an agreement to set up a Rs. 50-crore fund to support clean energy by providing financial support to develop and test ______________ products, systems and business                            .

    a) Lucrative, Models

    b) Innovative, Modals

    c) Innovative, Models

    d) Lucrative, Modals

    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. If the work would have been (a)/ properly assigned, it would have taken (b)/ much less time in completion (c).

    7. The money lender (a)/ handed over a hundred (b)/ rupees note to the borrower (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.

    8. Couched

    a) Escaped

    b) Engrossed

    c) Bagged

    d) Formulated

    9. Extremism

    a) Hatred

    b) Frenzy

    c) Biased

    d) Impartial

    10. Demarcate

    a) Connect

    b) Mark off

    c) Combine

    d) Publicize

     

    Question Answer
    1. b
    2. d
    3. c
    4. a
    5. c
    6. a
    7. c
    8. d
    9. d
    10. b

    Explanation:1) The first line of the passage clearly states that over the last two decades China is following exports-led economic growth model.

    Explanation:2) The first paragraph clearly states that China has finally been admitted into the global currency elite of the International Monetary Fund’s (IMF) reserve currency list which consists of “basket” of currencies from which the IMF derives the value of its own reserve asset, the Special Drawing Rights or SDRs.

    Explanation:3) The second paragraph clearly states that the Chinese leadership is also known for its propensity to devalue the Yuan often to make the country’s exports cheaper, which in turn led to its huge trade surplus.

    Explanation:4) As per the meaning of the sentence, the words ‘Invincibility’ which means something which cannot be conquered or mastered and ‘Dented’ which means to diminish, fits in the blanks.

    Explanation:5) As per the meaning of the sentence, the words ‘Innovative’ which means introducing new ideas and ‘Models’ which means to make or construct a descriptive or representational model, fits in the blanks.

    Explanation:6) Replace ‘would have’ with ‘had’.

    Explanation:7) Instead of ‘rupees’, the word should be ‘rupee’.

    Explanation:8) Both ‘Couched’ and ‘Formulated’ means to express something in language of a specified style.

    Explanation:9) Extremism means the holding of extreme political or religious views and ‘Impartial’ is the exact opposite word.

    Explanation:10) Both ‘Demarcate’ and ‘Mark off’ means to separate or differentiate something.

     

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