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IBPS PO & Indian Post Payment Bank Exam: Cloze Test Quiz based on ‘The Business Line’

Oct 7, 2016 18:17 IST

    It has been very common in the recent times that bank examinations focus on passages based on economic and social issues, business and finance, banking etc taken from leading English newspapers such as The Hindu, The Economic Times, The Business Standard, The Business Line, The Times of India, The Indian Express etc. Here the banking team of Jagranjosh.com, the standalone leader in banking prep industry is presenting to you a passage for Cloze Test taken from ‘The Business Line’ (dated October 5th 2016). Candidates are advised to attempt the quiz to prepare for upcoming examinations.

    Question (1-10): In the following passage, there are blanks each of which is numbered. These numbers are given below the passage and against each, five words are suggested out of which only one fits the bland perfectly. Find that word in each case.

    While borrowers of loans from banks have been ..1.. in fits and starts from the RBI’s rate cut over the past year, the ..2... has happened much faster in the bond markets, giving a heads up to certain borrowers. The yield on one-year commercial paper, for instance, has fallen ..3.. about 70-80 basis points so far this year even as banks have been ..4.. their feet, cutting lending rates by 10-15 basis points. This has ..5.. corporate borrowers who have a good rating and have been able to ..6.. funds from the bond market. According to data put ..7.. by the RBI recently, while credit from the banking system has grown by 19.2 per cent between March 2014 and March 2016, credit from the non-bank system — corporate debt and commercial papers, among others — has gone up by 37.4 per cent during the same period. Bankers say that many corporate borrowers have been able to ..8... the best of lower rates in the bond markets to raise funds. Yields on top-rated AAA corporate bonds have fallen by about 80 basis points this year to 7.4 per cent, with much of the ..9.. happening post the April policy, when the RBI last cut its key policy rate. AA rated companies, which rank a ..10.. lower and pay about 30-40 basis points more than top-rated companies to source funds from the secondary market, have also gained from the notable fall in rates. Yields on these bonds too, have fallen by about 40 basis points this year.

    1. Find out the right word

    1. Benefitting
    2. Befitting
    3. Rattling
    4. Crediting
    5. Other than those given in options

    Solution: Option (1)

    Explanation: The given context says that the banks are not very much keen on passing the benefits of rate cuts by RBI to the borrowers in general and that is why, general public is only benefitting from banks a bit. This makes option (1) the right choice among the given options.

    2. Find out the right word

    1. Simulation
    2. Transmission
    3. Transition
    4. Ratification
    5. Gratification

    Solution: Option (2)

    Explanation: The context says that the bond market has been able to pass on the rate cuts to its customers whereas banks have not been able to do so. This makes option (2) the right word for the given context since transmission is necessary for the rate cuts announced by RBI so that general public can take advantage of the situations.

    3. Find out the right word

    1. Of
    2. By
    3. In
    4. On
    5. At

    Solution: Option (2)

    Explanation: The context says that the yields on the bonds have decreased in the recent months because of the rate cuts and that is evident from the data. This makes option (2) the right choice among the given options.

    4. Find out the right word

    1. Passing
    2. Musing
    3. Caring
    4. Dragging
    5. Dancing

    Solution: Option (4)

    Explanation: The context says that banks are not too eager to pass on the rate cuts to the borrowers and that is why, the banks have not cut down the lending rates by much in the recent months though BI has decreased the rates. This makes option (4) the right choice among the given options.

    5. Find out the right word

    1. Capitalized
    2. Captured
    3. Aided
    4. Assaulted
    5. Other than those given in options

    Solution: Option (3)

    Explanation: The context says that the new situation in the Indian financial market and especially bond market is very beneficial for the corporate borrowers who need to borrow from the market very frequently. This makers option (3) the right choice among the given options.

    6. Find out the right word

    1. Romp
    2. Ram
    3. Raise
    4. Rise
    5. Star

    Solution: Option (3)

    Explanation: The context says that the corporate borrowers have been able to raise funds from the bond market very easily because of the favorable conditions prevailing in the bond market. This makes option (3) the right choice among the given options.

    7. Find out the right word

    1. On
    2. Up
    3. Off
    4. About
    5. If

    Solution: Option (2)

    Explanation: The context is about the data released by RBI regarding the rate cuts in case of loans offered by various banks and the yields on bonds in the corporate debt market. This makes option (2) the right choice among the given options.

    8. Find out the right word

    1. Take
    2. Go
    3. Make
    4. Refer
    5. Relieve

    Solution: Option (3)

    Explanation: According to the given context, the corporate borrowers have been able to easily raise funds from the bond market because of the favorable condition in the market. This is beneficial for them since they will be able to run their companies smoothly because of the funds and this, in turn, will be beneficial for the economy as a whole. This makes option (3) the right choice among the given options.

    9. Find out the right word

    1. Mannerisms
    2. Movements
    3. Machines
    4. Stockings
    5. Other than those given in options

    Solution: Option (2)

    Explanation: According to the given context, the changes in the bond markets have taken place mainly after the decision of rate cut announced by RBI in April 2016 and that is why, it has been easier for corporate borrowers to borrow money easily from the market. This makes option (2) the right choice among the given options according to the context of the passage.

    10. Find out the right word

    1. Noble
    2. Notch
    3. Give
    4. Hasten
    5. Gulp

    Solution: Option (2)

    Explanation: According to the given context, the AA companies and AAA companies both have seen changes in the market in the recent months and obviously AA rated companies are ranked lower than the AAA rated companies. ‘Notch’ is the word used to denote that and that makes option (2) the right choice among the given options.

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