English: Cloze Test for Upcoming Exams – Set 108

Directions: In the passage given below there are 10 blanks. Every blank has five alternative words given in options (A),(B),(C), (D) and (E). You have to tell which word is APPROPRIATE according to the context. Mark that inappropriate word as your answer.

SOME banks find existing capital requirements too taxing. To no one’s surprise, on December 23rd Monte dei Paschi di Siena, at present Italy’s fourth-biggest bank, asked the Italian state for help, having failed to raise from the private sector €5bn ($5.2bn) in capital demanded by the European Central Bank before the year’s end. Three days later Monte dei Paschi said that the ECB had redone its sums—and concluded that the _____1____  lender faced an even bigger shortfall, of €8.8bn.

Plenty of other European banks—in far better nick than poor old Monte dei Paschi, which is overloaded with bad loans—are _____2_____ that they too may eventually have to find more capital. They have spent years _______3_______ cushions that the financial crisis showed to be worryingly thin, but fear that proposed adjustments to Basel 3, the latest global standards, will require more. The Basel Committee on Banking Supervision, which draws up the standards, had hoped to agree on the revisions by the end of 2016. It’s not there yet: on January 3rd an _______4_______ meeting of central-bank governors and supervisors, to approve the changes, was postponed.
The amendments are _______5_______ to reduce the variation in banks’ own calculations of risk-weighted assets (RWAs), largely by restricting their use of in-house models. Under Basel rules, the ratio of a bank’s equity to its RWAs are a key _______6_______ of its strength: if lenders are too ______7_____ about risk, their estimated RWAs will be too low and their reported capital ratios misleadingly high.

The main _______8_______ to an agreement is the committee’s proposal of an “output floor”—a lower bound for banks’ RWAs—calculated as a percentage of the figure churned out by a “standardised” method. The higher the percentage, the tighter the standard: a first version of the proposals suggested 60-90%; a failed compromise last month ________9________ gradually raising it to 75% over four years, starting in 2021.

American officials like the floor, believing that it limits banks’ ability to play games with the rules. European banks and officials don’t. Both the Association of German Banks and the Bundesbank, for example, want no floor at all. They ______10______ that internal models make capital calculations more, not less, sensitive to risk.

  1. smitten, gratitude
    stricken, afflicted
    impaired, peace
    desolate, quicken
    All are correct
    Option B


  2. irritable, irked
    moaning, quibbling
    complaining, grouching
    grumbling, muttering
    All are correct
    Option E


  3. plumping up, shaking up
    agitate, churn
    concuss, soothe
    tranquilize, stir
    All are correct
    Option A


  4. impending, chimerical
    immediate, unexpected
    detached, inevasible
    imminent, gathering
    All are correct
    Option D


  5. affianced, reliance
    contemplated, conflicted
    intended, plighted
    betroth, pledged
    All are correct
    Option C


  6. measure, estimate
    scope, estimate
    gauge, criterion
    basis, guess
    All are correct
    Option C


  7. sanguine, assured
    buoyant, secure
    upbeat, spirited
    animated, positive
    All are correct
    Option E


  8. assistance, bar
    advantage, help
    obstacle, crimp
    trench, palisade
    All are correct
    Option C


  9. contemplated, contingent
    proposed, considered
    submitted, suggested
    scheduled, schemed
    All are correct
    Option E


  10. argue, attest
    insist, challenge
    avow, consent
    aver, along
    All are correct
    Option A



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10 Thoughts to “English: Cloze Test for Upcoming Exams – Set 108”

  1. DAS

    thank you shubhra mam

  2. PR@D$$P


    1. Priyanka N Nithin

      r u a regular follower of affairscloud and aspirantszone…

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