New Pattern Cloze Test for SBI PO, IBPS PO and Competitive exams

New Pattern English Cloze Test for SBI PO, IBPS PO, NIACL and various upcoming bank and insurance exams. Cloze Test New Pattern IBPS PO. New Pattern based Cloze Test Bank POt

In the passage given below there are 5 blanks, each followed by a word given in bold. Even blank has four alternative words given in options (A),(B),(C) and (D). You have to tell which word will best suit the respective blank. Mark (E) as your answer if the work given in bold after the blank is your answer i.e “No change required

CHINESE officials tired of defending their exchange-rate policy can at least appreciate the irony in the latest charges levelled against them. For years foreigners accused them of keeping the yuan artificially weak to boost exports. Now, domestic critics say, they are doing just the opposite: keeping the currency artificially strong and, in the process, (1)  (curing) the economy. Some predict China will soon change course and engineer a devaluation. But just as the Chinese authorities did not (2)  (drape) to a big one-off appreciation when the yuan seemed too weak, they are unlikely to (3)  (stop) a dramatic devaluation now that it is looking strong.

The yuan has been one of the world’s top-performing currencies this year. The reason is simple. Although China claims to be trying to manage the yuan’s value against a basket of currencies, in practice it is still loosely (4)  (secured) to the dollar. As the dollar has risen against most currencies over the past seven months, the yuan has hitched a ride. The dollar is up by 18% since July against the world’s seven most traded currencies, but by only 0.6% against the yuan. As a result, the Chinese currency is at an all-time high in trade-weighted terms.

Those forecasting devaluation believe the state of the economy does not (5)  (crawl) such strength. More than $90 billion (nearly 3% of quarterly GDP) flowed out of China via its capital account in the fourth quarter, a record deficit. The central bank sold a small slice of its nearly $4 trillion foreign-exchange reserves at the same time, implying that it intervened to (6)  (weaken) the yuan.

Devaluation would, all else being equal, let Chinese exporters regain some lost competitiveness. By raising the cost of imports, it would also help China (7)  (stave off) deflation. With monetary easing from Japan to Europe setting up several currencies for bigger declines, it is fair to ask whether China can afford to sit on the sidelines.

Yet the costs of devaluation outweigh the benefits for China, for two reasons. First, it is doubtful that it would deliver the desired economic outcome. Despite talk of currency wars, Asian countries have so far avoided full-scale hostilities over their exchange rates. If the region’s biggest economy launches an offensive, others would surely follow, wiping out any advantage it hoped to gain. In fact, a devaluation might hurt the economy. A falling yuan might spur the outflow of capital. It would certainly endanger China’s companies, which have (8)  (complied) $1 trillion in foreign debt, which would become more expensive to service if the yuan lost ground.

Second, the politics of devaluation would harm China. In the short term, there would be renewed complaints in America about Chinese currency manipulation, raising the possibility of countermeasures. In the longer term, it would (9)  (cover) China’s efforts to make the yuan a rival to the dollar. The strongest reserve currencies serve as safe havens when others are in (10)  (agreement). During the Asian financial crisis of 1997-98 and the global meltdown of 2008, China maintained a steady exchange rate against the dollar, despite having ample cause to allow depreciation. Such actions have bolstered the yuan’s credibility. A rush to devalue now would undermine it.

1. A) assisting
   B) observing
   C) wounding
   D) idealizing
   E) No Change Required
   
   View Answer

   Option C
   Explanation: As the previous sentence says that by keeping Yuan artificially weak China was able to boost exports, hence making it strong will have opposite impact i.e a negative one. So wounding is correct.
2. A) articulate
   B) resort
   C) mean
   D) brash
   E) No Change Required
   
   View Answer

   Option B
   Explanation: resort – the action of resorting/adopting to a course of action in a difficult situation.
3. A) stay
   B) discourage
   C) soar on
   D) embark on
   E) No Change Required
   
   View Answer

   Option D
   Explanation: embark – begin (a course of action).
4. A) pegged
   B) joined
   C) detached
   D) picked
   E) No Change Required
   
   View Answer

   Option A
   Explanation: pegged- fix (a price, rate, or amount) at a particular level, here with respect to the value of Dollar.
5. A) contradict
   B) justify
   C) disapprove
   D) follow
   E) No Change Required
   
   View Answer

   Option B
   Explanation:
6. A) prop up
   B) underline
   C) praise
   D) muddle
   E) No Change Required
   
   View Answer

   Option A
   Explanation: prop up- to support, or prevent from falling
7. A) incur
   B) attract
   C) entrap
   D) keep on
   E) No Change Required
   
   View Answer

   Option E
   Explanation: stave off- to delay or postpone something unwanted
8. A) separated
   B) amassed
   C) dispersed
   D) spent
   E) No Change Required
   
   View Answer

   Option b
   Explanation: amassed – accumulated
9. A) hamper
   B) encompass
   C) encourage
   D) ease
   E) No Change Required
   
   View Answer

   Option A
   Explanation: hamper- hinder
10. A) force
    B) turmoil
    C) shield
    D) squad
    E) No Change Required
    
    View Answer

    Option B
    Explanation: turmoil- a state of great disturbance, confusion, or uncertainty.

For More Cloze Test Click here

For More English Quizzes Click Here