Directions (1 - 4): 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.
4. What does author mean by the term ‘currencies dependable and liquid’ in the passage?
a) Currency which can be used to develop infrastructure in the country.
b) Currency which can be used to provide loans.
c) Currency kept in reserve which cannot be easily converted into cash.
d) Currency kept in reserve which can be easily converted into cash.
Directions (5 - 6): 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.
5. The cold moist air traps and the whole thing hangs in a toxic cloud that takes hours of sun to dissipate.
d) None of the above
6. The proposed GST reform could be a potential tool to attract and retain investors besides ………………… India’s brand image.
d) None of the above
Directions (7 - 8): 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.
7. Supposing if the Directors (a)/ doesn’t arrive in time for the Board Meeting, (b)/ what will you do? (c)
8. If the work would have been (a)/ properly assigned, it would have taken (b)/ much less time in completion/ (c) No error (d)
Directions (9 - 10): In each of the following questions, the first word is given in capital letters followed by four other words, one of which is the synonym or antonym of the first word. Find the word.
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: The second paragraph of the passage clearly mentions that China has become issuers of currencies dependable and liquid enough for other countries to use them as reserves.
Explanation 7: ‘If’ can be removed as it is redundant after the word ‘Supposing’.
Explanation 8: Replace ‘would have’ with ‘had’.
Explanation 9: ‘Delectable’ means something delicious and hence ‘Palatable’ is the appropriate synonym.
Explanation 10: ‘Precarious’ means something uncertain and hence ‘Definite’ is the appropriate antonym.