English Test for IBPS Clerk 2018 Main Exam Set – 4

Directions(1-10): In the passage given below there are 10 blanks. Every blank has four alternative phrases given in options (A),(B),(C), and (D). You have to tell which phrae is APPROPRIATE according to the context. If all are appropriate then mark your answer as “E”.

It is notable and welcome that an expert committee ___1___ the Insurance Regulatory and Development Authority of India (IRDAI) has recommended diversifying life insurance companies’ investment portfolio into equity, real estate, corporate bonds and some other asset classes, to boost returns for policyholders. Parking funds mostly in government bonds ___2___ poor, declining returns. The current norms direct 50% of the funds garnered from life insurance policies ___3___. But the ground reality is that about 80% of the monies ___4___ G-secs, which currently yield 6.7-7.2% and probably less further on. This must change.
Life insurers need to assiduously manage funds and purposefully invest in equities, property and even private equity, to ___5___ returns for policyholders. Sure, doing so would require ___6___ and superior asset management, but such a strategy would pay rich dividends. Foreign pension funds and insurance companies invest billions of dollars in Indian equities, and Indian insurers clearly need to do likewise and gainfully diversify their investment portfolio away from G-secs and to foreign markets, too. The Indian economy ___7___ sustained high growth, and in tandem, asset markets here are likely ___8___ too. Hence the need for life insurers and other long-term ___9___ investments in new kinds of assets, including distressed assets being sold for a song. The point is not to minimise the risk in every asset class in which policyholders’ money is invested ___10___ the risk for the corpus as a whole, by spreading the risk across asset classes. Once infrastructure projects traverse the risky part of their implementation, longterm savings should invest in bonds issued for their takeout finance. There is no dearth of diversification opportunities.

  1. entitled to
    constituted by
    constituted for
    opposed as
    All are Correct
    Option B

     

  2. likely to be
    will proceed to
    would lead to
    consequent in
    All are Correct
    Option C

     

  3. to forsee
    to expose
    to show
    to gilts
    All are Correct
    Option D

     

  4. is antic
    being playful
    go into hysteria
    go into staid
    All are Correct
    Option D

     

  5. disagree with
    desert off
    shore up
    harm up
    All are Correct
    Option C

     

  6. prudent risk
    huge risk
    being evaluated
    asked for
    All are Correct
    Option A

     

  7. assumed as
    is poised for
    seen to be
    set against
    All are Correct
    Option B

     

  8. to be buoyant
    to be extravagant
    exaggerated as
    likely to be
    All are Correct
    Option A

     

  9. seems to be
    be known to
    practiced to undertake
    funds to boost
    All are Correct
    Option D

     

  10. being valor
    instead to diminish
    yet to see
    but to minimise
    All are Correct
    Option D

     


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