English Sectional Test 1 for LIC AAO 2019 Prelim Exam

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We have come up with Sectional Tests for upcoming LIC AAO 2019 Prelim Exam. Practice the questions to ace the exam.

Directions(1-10): Read the following passage and answer the questions that follows.

The RBI’s successful rupee-dollar swap pilot is likely to entrench this as a liquidity management tool in the central bank’s repertoire. The swap represents proactive use of the relationship between monetary policy, exchange rate and cross-border capital movement normally articulated as passive helplessness in the face of ‘the impossible trinity’. The initial central bank dollar rupee swap for three years has received an enthusiastic response, with banks offering $16.31 billion for the rupee-dollar swap auction of up to $5 billion. It has simultaneously injected liquidity in the system, brought down the forward premium on the dollar, strengthening the incentive for foreign funds to enter the Indian market and reduced dependence on central bank bond purchases for injecting liquidity.
The rupee-dollar swap auction shows banks that need liquidity to expand credit have grabbed the offer. This year, the RBI infused liquidity mostly through bond purchases from the secondary market. It stood at over Rs 3 lakh crore, or a staggering 71% of net government borrowings this fiscal. Excessive reliance on open market operations poses the risk of artificially depressing interest rates, and creating extra room for government borrowing. Injecting liquidity via the dollar swap reduces such distortion.
The immediate effect of the swap operation is similar to the RBI’s intervention in the currency markets to mop up dollars to check rupee appreciation. When the RBI buys dollars, it injects fresh liquidity into the system. If the additional liquidity so created is seen to be excessive and building inflationary expectations, the RBI then absorbs the rupees by selling the so-called market stabilisation bonds. Open market operations are still on standby, to moderate liquidity to desired levels.

1. What happens when the RBI sells dollars?
   it injects fresh liquidity into the system
   it takes out liquidity from the system
   it doesn’t affect the market
   All are Correct
   Not mentioned in the passage.
   Option E
   

    

2. Under what conditions RBI absorbs the rupees by selling the market stabilisation bonds?
   when there is emergency
   when there is fresh liquidity in the system
   when there is excessive inflationary expectations
   when there is low recession
   None of these
   Option C
   

    

3. Which of the following are called “‘the impossible trinity’”?
   monetary policy, exchange rate
   rupee-dollar swap, cross-border capital movement
   cross-border capital movement, monetary policy
   Both a & c
   None of these
   Option D
   

    

4. What is the meaning of “brought down”?
   to wound
   to make someone or something move or fall to the ground
   to reduce the rate, level, or amount of something
   to make someone feel worse emotionally
   None of these
   Option C
   

    

5. By which means the RBI infused liquidity?
   through open market operations
   through rupee-dollar swap
   through bond purchases
   by buying dollars
   All are Correct
   Option C
   

    

6. What is the most appropriate synonym of “entrench”:
   dig in
   recede
   impinge
   keep
   All are Correct
   Option C
   

    

7. What wa the result of rupee-dollar swap ?
   currency markets to mop up dollars to check rupee appreciation
   banks that need liquidity to expand credit have grabbed the offer
   RBI absorbs the rupees by selling the market stabilisation bonds
   All are Correct
   None of these
   Option B
   

    

8. What is the most appropriate antonym of “auction”:
   vendue
   retail
   disconnect
   conceal
   All are Correct
   Option B
   

    

9. What is the theme of the passage?
   informative
   diplomatic
   critical
   acerbic
   None of these
   Option C
   

    

10. What should be the most appropriate title of the passage?
    Rupee-dollar swap
    Liquidity management tool
    Currency swap
    Both a & c
    None of these
    Option B
    

     

Directions(11-15): In each of the following questions there are sentences. There is an error in one of the parts. Mark the option which contains error parts as your answer. If no part contains error mark option E as your answer.

11. (A) Asking healthy banks to take over weak banks appears to be the strategy to handle the bad loans crisis. On Monday the Union government proposed the merger of three public sector banks — /(B) Bank of Baroda, Dena Bank and Vijaya Bank — to create an amalgamated entity that will become the country’s third largest lender. The merger is part of the government’s efforts to consolidate the banking industry with an eye on overcoming the bad loan crisis. /(C) After the announcement of the merger, shares of Bank of Baroda and Vijaya Bank shed a significant part of their value, while Dena Bank gained sharply to hit the upper circuit on Tuesday. /(D) This is not surprising at all. Dena Bank is the bank in the worst financial situation among the three entities and is currently under the Reserve Bank of India’s prompt corrective action framework.
    A
    B
    C
    D
    NE
    Option C
    hit the upper circuit = hit upper circuit

     

12. (A) The Union Cabinet’s decision to take the ordinance route to enact a diluted version of its law making instant triple talaq a criminal offence is a sign of undue impatience. /(B) This is a matter that requires deliberation, especially after serious objections were raised to some provisions of the Bill passed by the Lok Sabha; also, there is an ongoing debate on the desirability of criminalising instant triple talaq. /(C) The Muslim Women (Protection of Rights on Marriage) Bill, as approved by the Lok Sabha, sought to give statutory form to the Supreme Court ruling of 2017 that declared talaq-e-biddat as illegal. /(D) The Bill made this form of divorce punishable by a three-year prison term and a fine. In the face of Opposition concerns, the government proposed significant changes to water down the provisions relating to the treatment of talaq-e-biddat as a criminal offence.
    A
    B
    C
    D
    NE
    Option B
    requires = required

     

13. (A) The rules-based world order for international trade appears to be in for a rougher ride yet after the administration of U.S. President Donald Trump announced this week that it would be slapping $200-billion worth of Chinese exports with 10% tariff, ratcheting up it to 25% by the year-end. /(B) In the latest round of the ongoing trade skirmishes between the world’s two largest economies, almost 6,000 items will be hit by the new U.S. tariffs, from September 24 onward. /(C) Typical of Mr. Trump’s aggressive approach on “unfair” trade policies, the tariff announcement came with the warning, /(D) “If China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports.”
    A
    B
    C
    D
    NE
    Option A
    ratcheting up it = ratcheting it up

     

14. (A) The joint visit of South Korean President Moon Jae-in and North Korea’s Kim Jong-un to Mount Paektu, the mythical birthplace of the Korean nation, on the last day of their landmark three-day summit is a forceful show of unity by the two countries. /(B) At the site, which falls in North Korea, Mr. Moon said the time would come when ordinary South Koreans “will come here on tours”, in a message of normalisation of ties. /(C) While travelling to Pyongyang earlier this week, Mr. Moon’s main goals were to revive the talks between the U.S. and North Korea over denuclearisation, and infuse fresh warmth into the North-South thaw. /(D) Given the agreements signed and the statements issued, the summit has strengthened the momentum for peace in the peninsula.
    A
    B
    C
    D
    NE
    Option E
    

     

15. (A) The Supreme Court’s intervention following the arrest of five prominent activists by the Pune police last month was truly extraordinary and raises the bar for protection of personal liberty. /(B) The court has granted them the rare relief of remaining in house arrest while it examines the charges against them. /(C) It has reserved its decision in the case and now must decide on one of the following courses. /(D) They are: to allow the police in Maharashtra to pursue its investigation against the activists for allegedly being members of the outlawed Communist Party of India (Maoist) and joining a conspiracy against the government, to set them at liberty on the ground that this is a trumped-up case, to order a probe by an independent team.
    A
    B
    C
    D
    NE
    Option A
    was = has been

     

Directions(16-20): Which of the phrases (A), (B), (C), (D) given below each sentence should replace the phrase printed in bold to make the sentence grammatically correct? If the sentence is correct as it is, mark (E) ie ‘No correction required’ as the answer.

16. Forced mergers such as the current one make little business sense for the stronger banks as the weaker banks tend to be dragging on their operations. They are also unlikely to solve the bad loan crisis that has gripped the banking system as a whole.
    likely to drag
    tend to be a drag on
    a drag on
    assumed to be dragging
    No Correction Required
    Option B
    

     

17. However, the changes are to be introduced through the ordinance do address some of the reservations about the original Bill. The first makes the offence cognisable only if the woman, or one related to her by blood or marriage, against whom triple talaq has been pronounced, files a police complaint.
    changes to be introduced
    changes which are introduced
    changes likely to introduce
    changes for introduction
    No Correction Required
    Option A
    

     

18. There are two questions that this escalation raises. First, what likely the trajectory of this conflict? Economists concur that in the near term the trade war will cause a shrinkage in bilateral trade volumes. Businesses in the U.S., China and nations with close trade and investment links to the two countries, such as those in Europe, will find themselves in considerable economic trouble.
    as the trajectory
    trajectory be like
    what likely is the trajectory
    is the likely trajectory
    No Correction Required
    Option D
    

     

19. The U.S. has responded optimistically to the summit, expresses readiness immediately to engage North Korea in talks. But it remains to be seen whether the positive atmospherics at the summit will yield tangible achievements on critical issues such as denuclearisation. Since the ice-breaking Panmunjom summit between Mr. Kim and Mr. Moon on April 27, inter-Korea relations have improved remarkably, while the U.S.’s engagement with the North has strengthened hope for peace.
    expressing readiness for immediately engage
    express the readiness for engage
    expressing readiness to immediately engage
    expresses readiness to immediately engage
    No Correction Required
    Option C
    

     

20. In entertaining this petition, the Supreme Court has made the stage over an examination of some fundamental questions at the intersection of criminal procedure and constitutional law. The procedural question is whether in a criminal matter the court can entertain a petition under Article 32 of the Constitution, under which the Supreme Court enforces fundamental rights, for which the accused are expected to seek their remedy under the Code of Criminal Procedure.
    has been setting the stage for
    has set the stage for
    has done the stage for
    has set the stage of
    No Correction Required
    Option B
    

     

Direction (21-25): In each question below a sentence is given with two blanks in each. Each question is followed by four options with two words in each. You have to select that option as your answer which can fill both the blanks of the sentence.

21. There is no denying the fact that there are too many public sector banks in India; given this, consolidation is a good idea in principle. But ideally, mergers ought to be between strong banks. Then again, these are not normal times and with many banks in a _______________ situation, the immediate compulsions for merging the weak Dena Bank with the stronger Bank of Baroda and Vijaya Bank are clear. From a corporate governance perspective, however, the merger sends out rather poor signals. Here is a dominant shareholder in the form of the government that is dictating _______________ moves that impact the minority shareholders, who are left with no say in the matter.
    hazardous, skeptical
    precarious, critical
    perilous, experienced
    insecure, suspicious
    All are Correct
    Option B
    

     

22. These amendments will not only restrict the scope for misuse by preventing third parties from setting the criminal law in motion against a man pronouncing instant triple talaq against his wife; they will also leave open the possibility of the marriage continuing by allowing bail and settlement. But the core issue that arises from the proposed law remains: whether a marital wrong, essentially a civil matter, should lead to prosecutions and jail terms. Also, when the law declares instant triple talaq to be _______________ , it only means the marriage continues to _______________ , and it is somewhat self-contradictory for a law to both allow a marriage to continue and propose a jail term for the offending husband.
    endure, absurd
    exist, expired
    subsist, invalid
    prevail, fallacious
    All are Correct
    Option C
    

     

23. China, and indeed any other nation that trades with the U.S., may seek alternative markets and trading partners if the American government persists with its _______________ into economic isolationism. Yet, even if countries can avoid some of the _______________ costs of this battle, global institutions such as the WTO and a myriad other multilateral rule-making bodies will wither away, losing their authority. Philosophically, this would fly in the face of the foundational economic principles regarding division of labour and comparative advantage. This would, in the much-longer term, be a loss for the world community of nations, many of whom have worked hard to establish and credentialise the post-World War order precisely in order to stave off the dark forces of parochialism that engendered the horrors of that period.
    vindicatory, veneer
    corrective, lunge
    punitory, risk
    punitive, retreat
    All are Correct
    Option D
    

     

24. The main problem is that though denuclearisation was _______________ as a common goal, there were no specific steps or timeline laid out. It has remained more of a promise than a strategic plan. Pyongyang also wants the U.S. to formally declare an end to the Korean war before it makes any more concessions. But the heartening message from these engagements is that Mr. Kim appears to be consistent in his pursuit of peace and global recognition. Both the U.S. and South Korea should reciprocate and take _______________ steps for lasting peace.
    accepted, concrete
    established, flexible
    acknowledged, abstract
    recognized, metaphysical
    All are Correct
    Option
    

     

25. The _______________ question is whether the court should intervene when the liberty of citizens and their right to dissent are sought to be denied by arbitrary police action. Observations that “dissent is the safety valve of democracy” and “personal liberty cannot be sacrificed at the altar of conjecture” indicate the court’s thinking. It is against this backdrop that the Bench has decided to examine the case diary to see whether the charges have some basis. The government may have reason to worry about a precedent being set, whereby every accused can rush to the Supreme Court immediately on arrest. At the same time, one cannot wish away the peculiar circumstances in which a case relating to violence at a Dalit commemoration dramatically _______________ into a Maoist plot.
    substantial, preserved
    substantive, morphed
    significant, shapely
    technic, unvaried
    All are Correct
    Option B
    

     

Directions(26-30): In the passage given below there are 5 blanks. Every blank has four alternative words given in options (A),(B),(C), and (D). You have to tell which word is APPROPRIATE according to the context. If all are appropriate then mark your answer as “E”.

‘You ___26___ the issue on its head,” someone said to me after I gave a talk on identity politics in Melbourne last week. “I’ve never thought of it that way round.” It always was on its head, I said to her. It’s just that we’ve never noticed.
I’ve been in Australia over the past week talking, among other things, about the politics of identity. The issue has, in the wake of the Christchurch mosque massacres, acquired ___27___. The gunman, who has been ___28___ in a New Zealand court with 50 counts of murder, was Australian. It has led to much soul searching about white nationalism and its roots and about the role of mainstream media and politics in fuelling hatred.
There is, though, in Australia as elsewhere, a strange ___29___ in such discussions. There is a heated debate ___30___ identity politics, which focuses primarily on the left, and on whether it makes sense to adopt such politics. There is an equally heated, but separate, debate about white identity and white nationalism.

26. whirled
    turned
    moved
    missed
    All are Correct
    Option B
    

     

27. diversion
    leisure
    resonance
    amusement
    All are Correct
    Option C
    

     

28. demanded
    asked
    sired
    charged
    All are Correct
    Option D
    

     

29. disjuncture
    coherence
    consistency
    congruity
    All are Correct
    Option A
    

     

30. at
    about
    over
    on
    All are Correct
    Option B