English: Cloze Test for Upcoming Exams – Set 125

Directions: In the passage given below there are 10 blanks. Every blank has four alternative words given in options (A),(B),(C), and (D). You have to tell which option is appropriate according to the context. If all are appropriate then mark your answer as “E”.

If India is indeed the world’s fastest-growing big economy, as its government once again ____1____ this week, no one told its bankers and business leaders. In a nation of 1.3bn steadily growing at around 7% a year, the mood in corner offices ought to be jubilant. Instead, firms are busy cutting back investment as if ____2____ in recession. Bank lending to industry, growth in which once reached 30% a year, is shrinking for the first time in over two decades. If this is world-beating growth, what might a slowdown look like?

India’s macroeconomy ____3____ along (though the quality of government statistics remains questionable), but its corporate sector is ailing. The sudden and chaotic “demonetisation” of 86% of bank notes in November hardly helped. But the origins of India’s troubles go much deeper. After India dodged the worst of the financial crisis a decade ago, a ____4____ of investment was made on over-optimistic assumptions. Banks have been in denial about the ability of some of their near-bankrupt borrowers to repay them. The result is that the balance-sheets of both banks and much of the corporate sector are in ____5____ states.

After years of burying their heads in the sand, India’s authorities now worry that its “twin balance-sheet” problem will soon imperil the wider economy. Both the Reserve Bank of India (RBI) and the government have ____6____ banks to deal with their festering bad loans. Around $191bn-worth, or 16.6% of the entire banking system, is now “non-performing”, according to economists at Yes Bank. That number is still swelling.

Given the linkages between them, companies and banks often run into trouble concurrently. But countries where banks’ balance-sheets resemble Swiss cheese usually have no choice but to deal with the issue promptly, lest a panicked public start ____7____ at ATMs. India is different. State-owned lenders make up around 70% of the system, and nobody thinks the government will let them go bust. As a result, what for most economies would be an acute crisis is in India a ____8____ malaise.

That doesn’t make it any less painful. Investment is a key component of GDP, and it is now shrinking, thanks to ____9____ firms. India runs a trade deficit and the government is seeking to cut its budget shortfall, which leaves consumption as the sole engine of economic growth. Indeed, until demonetisation, consumer credit was booming, up by about 20% year on year. Some may wonder whether those are tomorrow’s bad loans, or when consumers will ____10_____ of stuff to buy.

  1. requested
    claimed
    forfeited
    abdicated
    All are Correct
    Option B

     

  2. convoluted
    mucked
    mired
    slimed
    All are Correct
    Option E

     

  3. gulps
    devours
    absorbs
    chugs
    All are Correct
    Option D

     

  4. dawdle
    dull
    flurry
    acclimate
    All are Correct
    Option C

     

  5. parlous
    innocuous
    salubrious
    advantageous
    All are Correct
    Option A

     

  6. praised
    nagged
    pleased
    acclaimed
    All are Correct
    Option B

     

  7. marking time
    lining up
    falling in
    queuing up
    All are Correct
    Option E

     

  8. docile
    eradicable
    chronic
    ephemeral
    All are Correct
    Option C

     

  9. generous
    parsimonious
    altruistic
    magnanimous
    All are Correct
    Option B

     

  10. poop out
    give out
    peter out
    run out
    All are Correct
    Option E

     



 

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