710 SBI CL MN - ramsir.inramsir.in/blog/wp-content/uploads/2019/05/SBI-CL-MAINS-710.pdf · be a part of forex reserves for three years, it can be used by the RBI in market interventions,

DIRECTION (1-9): Read the following passage carefully and

answer the questions given below it.

The RBI’s two remarkably successful auctions for dollar-rupee

swaps indicate that this tool has been designed in such a way

that it meets the requirements of all stakeholders. Not only has

the auction helped the RBI meet its objective of infusing liquidity

into the system at a particularly challenging juncture and help

bolster forex reserves, it has also helped banks and corporates

put their dollar holdings to good use. The aim of the swap

arrangement was to infuse [A] ——————— liquidity into the

system, without disrupting either the foreign currency or bond

markets. Banks had to initially sell US dollars to the RBI at the

reference rate on the date of the auction and receive rupees in

return, which were to be used to meet credit demand. In the

second phase of the transaction, the amount in rupees, along

with the premium that was bid, had to be returned to the RBI at

the end of three years and the RBI had to return the dollars to the

banks. The enthusiasm displayed by banks in bidding in the two

auctions implies that the swap was commercially [B] —————

— for them. In the first auction conducted in the latter part of

March, bids worth $16.31 billion was received by the RBI, of

which $5.02 billion was accepted. The weighted average

premium in the first auction was ₹7.92. The second auction,

conducted this week, was a greater success, with bidding value

of $18.65 billion for the offer of $5 billion and the weighted

average premium of the bids at ₹8.43.

[C] It’s clear that the auction has provided a channel from which

entities in possession of dollars raised through overseas loans,

could earn additional revenue. Borrowers who wanted to hedge

their future cash-flows would have also founded the swap useful.

With borrowing rates in international markets ruled lower than the

annualised premium bid in the auctions, it would have also have

been possible to borrow dollars from overseas to deliver to the

central bank. Through the infusion of ₹34,561 crore in the first

auction and ₹34,874 crore in the second, the central bank has

ensured that liquidity conditions remain [D] benign around the

general elections. With an additional ₹25,000 crore of open

market operations planned in May, the economy is not likely to

be hampered by tight liquidity in the near term. Higher liquidity is

expected to facilitate better transmission of policy rate cuts. Since

the forex swap does not impact the spot market of the rupee, any

impact in the spot currency market is likely to be [E] —————

———. This move will also reduce pressure on bond yields.

The forex market will be benefited through the swap

arrangements as it helps bolster forex reserves at a time when

financial markets [F] is in a tumultuous due to raising crude

oil prices. Since the dollars purchased through the auction will

be a part of forex reserves for three years, it can be used by the

RBI in market interventions, if needed.

1. Which of the following cannot be inferred from the

passage?

a) Before the auction the RBI was not able to meet its

objective of infusing liquidity into the system.

b) Before the auction, banks and corporates didn’t put their

dollar holdings to good use.

c) The auctions for dollar-rupee swaps have been designed

to meet the requirements of either of stakeholders.

d) The aim of the swap arrangement was to withdraw

temporary liquidity from the system.

e) None of the above can be inferred

2. Which of the following words given in the option should

come at the place marked as [A] in the above paragraph

to make it grammatically correct and meaningful. Also,

the word should fill in the blanks given in the two

sentences below to make them contextually correct and

meaningful.

I. The tails are almost black and make up most handsomely

into trimmings, muffs, &c. Tails worked separately in

these forms are as rich and fine and more —————

— than any other fur suitable for a like purpose.

II. Used as carriage rugs and floor rugs, most ————— for

latter purpose and of fine effect.

(a) durable (b) dynamic (c) strong

(d) stout (e) All are correct

3. What were banks supposed to do under the Dollar-Rupee

swaps? Answer on the basis of the passage.

a) They are expected to infuse liquidity into the system.

b) They are expected not to disrupt either the foreign

currency or bond markets.

c) They had to initially sell US dollars to the RBI at the

reference rate on the date of the auction and receive

rupees in return.

d) They had to return the money to the RBI at the end of

three years.

e) All of the above.


come at the place marked as [B] in the above paragraph




meaningful.

I. We have recently been experimenting with heat meters,

to see whether the possibility of charging via their

readings is ——————.

II. I am saying that for small nations to be economically and

politically —————— is good news for peace.

(a) possible (b) viable (c) probable

(d) successful (e) feasible

710 SBI CL MN

5. Which one or more of the three sentences given in italics

[C] in the above passage contain/s an error? The number

of that sentence will be your answer. If all the sentences

are correct as they are, your answer will be (e) i.e. No

error.

A. It’s clear that the auction has provided a channel from

which entities in possession of dollars raised through

overseas loans, could earn additional revenue.

B. Borrowers who wanted to hedge their future cash-flows

would have also founded the swap useful.

C. With borrowing rates in international markets ruled lower

than the annualised premium bid in the auctions, it would

have also have been possible to borrow dollars from

overseas to deliver to the central bank.

(a) All A, B & C (b) Only A & B (c) Only A & C

(d) Only B & C (e) No error

6. Which of the following words can replace the word given

in bold in [D] in the above passage?

(a) gentle and kind (b) thought provoking

(c) whole-hearted (d) rabble-rousing

(e) soft-spoken

7. Which of the following can fit well into the blank created

in [E] in the above passage?

(a) short-lived (b) short-term (c) impermanent

(d) momentary (e) All are correct

8. Which of the following can replace the bold part of the

sentence given in [F] in the above passage? If the

question is correct as it is, your answer will be (e) i.e. No

correction required.

a) are in a tumult owing to rising crude oil prices

b) are in a turmoil due to raising crude oil prices

c) have in a turbulence because of arising crude oil prices

d) are in a turmoil due to rising crude oil prices

e) No correction required

9. Which of the following can best summarise the given

passage?

A. The tool has turned out to be a win-win for all stakeholders

B. The dollar-rupee swaps opens the possibility of big

opportunities for all stakeholders

C. The turmoil seems to a big hindrance to the dollar-rupee

swaps

(a) All A, B & C (b) Only A & B (c) Only A & C

(d) Only B & C (e) No error

Directions (10-13): In each of the questions given below a

sentence is given in which an/a idiom/phrase has been put

in BOLD. Five options are given below each such sentence.

You have to choose the option which best describes the

meaning of the phrase/idiom.

10. With the economy in tatters, another lengthy blog from the

finance minister to defend his failure and blame the previous

governments is in the offing.

a) Under consideration

b) Saved in the draft

c) In the printing stage

d) About to happen at some time in the near future

e) None of these

11. After the heated exchange of words, the manager adjourned

the town hall meeting sine die.

a) Resignation

b) Permanently

c) Without any future date/time for resumption

d) Written on stamp paper

e) None of these

12. After arguing with and embarrassing the CEO in front of all

staff, I think he burned his boat.

a) To do something that cannot be easily undone or

reversed in the future.

b) To burn one’s vehicle.

c) To burn one’s vehicle.

d) To set on fire.

e) No e of these

13. After the final bell rang the children ran amuck in the

corridors.

a) Ran for the mock test

b) Ran straight to the playground

c) Ran straight out of there classroom

d) To behave in wild and uncontrolled way

e) None of these

Directions (14-19): In the following sentences (1) as

STARTER is given. Rearrange the next sentences in the

proper sequence to form a meaningful paragraph; then

select the proper sequence given below them.

14. Rearrange the following sentences into a coherent

paragraph.

1. A third Saturday of anti-fuel-tax demonstrations,

A. In response, the French government cancelled a second

planned fuel-tax rise,

B. But protesters said this was not enough.

C. Infiltrated by violent provocateurs from the hard left and

the extreme right,

D. Saw windows smashed, cars ablaze and monuments

defiled in Paris.

(a) BACD (b) CDAB (c) DACB

(d) BADC (e) No arrangement required.


paragraph.

1. An hour proved to be a long time in British politics, as

Theresa May’s government suffered three rapid defeats

in the House of Commons over Brexit.

A. In his advice to the prime minister, the attorney-general

stated that the Northern Ireland “backstop” would “endure

indefinitely” if no new arrangement was agreed.

B. The government was held in contempt of Parliament, a

first in modern times, for not publishing the full legal

advice from the attorney-general concerning the

withdrawal agreement.

C. MPS also voted to have a direct say in what comes next

if the prime minister’s proposed deal is voted down on

11th of the next month.

(a) BCA (b) CBA (c) BAC

(d) ACB (e) No arrangement required


paragraph.

1. An advocate general of the European Court of Justice

advised,

A. At the request of some Scottish MPs, that Britain could

unilaterally revoke the Article 50 notification to leave the

European Union.

B. While not a final ruling by the ECJ,

C. It could provide an avenue of escape if Mrs May’s deal

fails to win over Parliament.




paragraph.

1. A small anti-immigrant party, Vox, did well in elections in

Andalusia in Spain,

A. Entering the regional parliament there.

B. It is the first time that a far-right party has taken seats

C. In a Spanish parliament for more than 30 years.




paragraph.

1. China’s ministry of science described the creation of the

world’s first gene-edited babies,

A. Mr He’s whereabouts are unclear.

B. as “shocking” and illegal.

C. A feat claimed by a Chinese scientist, He Jiankui,




paragraph.

1. A Buddhist, Xuecheng, resigned from an advisory body

to China’s parliament,

A. Following accusations of sexual harassment.

B. In which he had held senior positions.

C. The monk stepped down as chairman of the official

Buddhist Association in August



Directions (20-26): Read each sentence to find out whether

there is any grammatical error in it. The error is in only one

of the sentences. The number of that sentence is the answer.

(Ignore the errors of punctuation, if any.

20. Find out error in the following four sentences, if any. If

there is no error, your answer will be (e) i. e. No Error.

a) After a briefing by the head of the CIA, senators in

America said they were certain that

b) Muhammad bin Salman, the crown prince of Saudi

Arabia,

c) ordered the killing of Jamal Khashoggi, a Saudi journalist,

in a consulate in Istanbul in October.

d) A Turkish court approved arrest warrants for two former

aides to prince over the killing.

e) No error.



a) It was another reminder of the oil cartel’s disunity.

b) Saudi Arabia, OPEC’s most important member,

c) has been trying to strangle

d) Qatar with a trade embargo.

e) No error.



a) Police in Israel recommended

b) that Binyamin Netanyahu be indict for bribery and fraud.

c) The prime minister and his associates have been the

subjects of several criminal probes.

d) Police have recommended indictments in three.

e) No error.



a) America reopened its embassy in Mogadishu, the capital

of Somalia.

b) Fighting between rebels and the government forced

America

c) to closing the embassy and airlift out its ambassador in

1991.

d) The move reflects Somalia’s progress, said the State

Department.

e) No error.



a) Lawmakers in Sudan expressed support for a

constitutional amendment

b) that would allow President Omar al-Bashir

c) to run for third term in 2020,

d) despite a two-term limit introduced in 2005.

e) No error.



a) South Africa’s parliament approved a report endorsing a

constitutional amendment

b) that would allow the expropriation of land without

compensation.

c) It can now start the process of making the change.

d) Land grabs in neighbouring Zimbabwe caused an

economical collapse.

e) No error.



a) Cuba announced that people would be allowed to buy

internet subscriptions on their mobile phones.

b) Cubans have so far been restricted to use public hotspots

or cybercafés to get online.

c) The state-owned mobile-network operator will offer data

packages up to 4GB for $30,

d) about the same as the average monthly state wage.

e) No error.

DIRECTION (27-40): IN THE FOLLOWING QUESTIONS YOU

ARE ASKED TO DO AS DIRECTED.

Think of the upper [A] echelons of the money-management

business, and the image that springs to mind is of ——[B]——

private banks in Geneva or London’s Mayfair, with marble lobbies

and fake country-house meeting-rooms designed to make their

super-rich clients feel at home. But that picture is out of date. A

more accurate one would feature hundreds of glassy private

offices in California and Singapore that invest in Canadian bonds,

European property and Chinese startups—and whose gilded

patrons are sleepwalking into a political storm.

[C] ————————————. Personal investment firms that

roam global markets are looking for opportunities. Largely

unnoticed, family offices have become a force in investing, with

up to $4trn of assets—more than hedge funds and equivalent to

6% of the value of the world’s stockmarkets. As they grow even

bigger in an era of populism, family offices are destined to face

uncomfortable questions about how they concentrate power and

feed inequality.

[D] The concept is hardly new; John D. Rockefeller set up

his family office in 1882. But the number has exploded this

century. Somewhere between 5,000 and 10,000 are based in

America and Europe and in Asian hubs such as Singapore

and Hong Kong. Though their main task is to manage

financial assets, the biggest offices, some with hundreds of

staff, undertakes all sorts of other chores, from tax and legal

work to acting as high-powered butlers who book jets and

pamper pets.

[E] The costs of bringing such expertise in-mansion means

that they generally make sense only for those worth over

$100m, the top 0.001% of the global pile. Asian tycoons such

as Jack Ma of Alibaba has created their own fiefs. The

largest Western family offices, such as the one set up by

George Soros, an investor and philanthropist, oversee tens

of billions and are as muscular as Wall Street firms,

competing with banks and private-equity groups to buy

whole companies.

[F] Every investment boom reflects the society that spawned it.

The humble mutual fund came of age in the 1970s after two

decades of middle-class prosperity in America. The rise of family

offices reflects soaring inequality. Since 1980 the share of the

world’s wealth owned by the top 0.01% has risen from 3% to 8%.

As the founders of family firms receive dividends or the proceeds

of initial public offerings, they usually redeploy the cash. But

since the financial crisis there has been a loss of faith in external

money managers. Rich clients have taken a closer look at private

banks’ high fees and murky incentives, and balked.

These trends are unlikely to fade, as our Briefing explains. The

number of billionaires is still growing—199 newbies made the

grade last year. [G] Older entrepreneurs are preparing to cash

out, who created firms in the boom years after 1990 in the

emerging world. However, in America and China younger tech

entrepreneurs may soon float their companies, releasing a new

wave of cash to reinvest. Family offices’ weight in the financial

system, therefore, looks likely to rise further. [H] ———————

—. The most obvious of these is the least convincing—that family

offices have created inequality. They are a consequence, not its

cause. Nonetheless, there are concerns—and one in particular

that is worth worrying about.

The first is that family offices could —[I]— the stability of the

financial system. Combining very rich people, opacity and

markets can be explosive. lTCM, a $100bn hedge fund backed

by the super-rich, blew up in 1998, almost bringing down Wall

Street. [j] Scores of wealthy people fell about a Ponzi scheme

run by Bernie Madoff that collapsed in 2008. Still, as things stand

family offices do not look like the next disaster waiting to happen.

They have debt equivalent to 17% of their assets, making them

among the least leveraged participants in global markets. On

balance, they may even be a stabilising influence. Their funds

are usually deployed for decades, [K] ———————————

—.

[L] 1. The second worry is that family offices could magnify the

power of the wealthy over the economy.

A. The family-office industry is less concentrated than

mainstream asset management, which a few firms such as

BlackRock dominate.

B. But the aim is usually to diversify risk, not concentrate power,

by taking capital from the original family business and putting

it into a widely spread portfolio.

C. Compared with most fund managers, family offices have

welcome habits, including a longer-term horizon and an

appetite for startups.

D. This is possible: were Bill Gates to invest exclusively in

Turkey, he would own 65% of its stockmarket.

[M] It is the third danger that has most bite: that family offices

might have privileged access to information, deals and tax

evidence, allowing them to outperform ordinary investors. So

far there is little schemes for this. The average family office

returned 16% in 2017 and 7% in 2016, according to Campden

Wealth, a research firm, slightly lagging behind world

stockmarkets. Nonetheless, tycoons are well connected. [N]

Family offices are becoming much complex—a third have at

least two branches—making tax wheezes easier. Hungry

brokers and banks are rolling out the red carpet and pitching

deals with unlisted firms that are not available to ordinary

investors. If all this did lead to an entrenched, unfair

advantage, the effect, when compounded over decades,

would make wealth inequality disastrously worse.

27. Which of the following words best paraphrases the word

given in [A] in the paragraph?

(a) strata (b) contemporaries

(c) verisimilitudes (d) providence

(e) rhetoric

28. Which of the following words given in the options should

come at the place marked as [B] in the above paragraph




meaningful.

I. Design historian Maureen Footer chronicles how the

Enlightenment, Belle Époque, and Empire periods

inspired both spaces, effecting a scheme that, with the

incorporation of modern elements, felt iconic and inspired

rather than tired and —————————.

II. Kudos to the establishment for discarding that ————

—————— notion about reds being acceptable only

with certain foods, whites with others.

(a) fragrant (b) fusty (c) ambrosial

(d) redolent (e) aromatic

29. In the blank [C] given in BOLD the above paragraph, a

sentence is missing, which along with other four

sentences is given below. Find that sentence.

a) The economic slowdown following the global financial

crisis hit this way of doing things hard.

b) Global finance is being transformed as billionaires get

richer and cut out the middlemen by creating their own

family offices.

c) Firms looking to move components through their supply

chain or finished goods to retailers have two main options.

d) Most goods wend their way across the world using the

second option—containerised freight.

e) The non-domestic cargo business has revenues of

$2.6trn a year, according to BCG.

30. In the passage given, a sentence [D] is given in BOLD.

There may or may not be an error in one part of the

sentence. Choose the part which has an error in it as

your answer. If there is no error, option (e) will be your

answer.

a) The concept is hardly new; John D. Rockefeller set up his

family office in 1882.

b) But the number has exploded this century.

c) Somewhere between 5,000 and 10,000 are based in

America and Europe and in Asian hubs such as

Singapore and Hong Kong.

d) Though their main task is to manage financial assets, the

biggest offices, some with hundreds of staff, undertakes

all sorts of other chores, from tax and legal work to acting

as high-powered butlers who book jets and pamper pets.

e) No error.

31. In the passage given, a sentence [E] is given in BOLD.




answer.

a) The costs of bringing such expertise in-mansion means

that they generally make sense only for those worth over

$100m, the top 0.001% of the global pile.

b) Asian tycoons such as Jack Ma of Alibaba has created

their own fiefs.

c) The largest Western family offices, such as the one set up

by George Soros, an investor and philanthropist, oversee

tens of billions and are as muscular as Wall Street firms,

d) competing with banks and private-equity groups to buy

whole companies.

e) No error.

32. Which of the following sentences, on the basis of [F]

given in BOLD in the above paragraph is/are correct?

a) The mutual fund was finally established in the 1970s after

two decades of middle-class prosperity in America.

b) The rise of family offices contributed to soaring inequality.

c) Family firms always redeploy the cash they receive as

dividends or the proceeds of initial public offerings.

d) Rich clients have taken a closer look at private banks’

high fees and murky incentives, and have readily

embraced them.

e) All are correct.

33. In the passage given, a sentence [G] is given in BOLD,

which may or may not have been written in a proper

order. Choose the sentence which grammatically and

meaningfully correct. If the sentence in the question is

correct as it is, choose option (a) as your answer.

a) Older entrepreneurs are preparing to cash out, who

created firms in the boom years after 1990in the emerging

world.

b) In the emerging world, older entrepreneurs are preparing

to cash out, who created firms in the boom years after

1990.

c) In the emerging world, those older entrepreneurs who

created firms in the boom years after 1990 they are

preparing to cash out.

d) In the emerging world, older entrepreneurs who created

firms in the boom years after 1990 are preparing to cash

out.

e) In the emerging world, those who created firms in the

boom years after 1990 those older entrepreneurs are

preparing to cash out.

34. In the blank [H] given in BOLD the above paragraph, a

sentence is missing, which is along with other four

sentences is given below. Find that sentence.

a) As it does, the objections to them will rise exponentially.

b) As a thumb rule, they will readily embrace the

opportunities.

c) Why will, as it goes well, they feel tormented after all.

d) Nonetheless, they will rise to the occasion.

e) Both (b) & (c)


come at the place marked as [I] in the above paragraph




meaningful.

I. This was followed by further reports of the committees of

both Houses, presenting evidence of the secret

manufacture of arms and of other proceedings calculated

to ——————— the public peace.

II. She agreed with their plan of an armed congress, and on

this idea both she and Fersen insisted with all their might,

Fersen leaving Brussels and going on a mission to the

emperor to try and gain support and checkmate the

émigrés, whose desertion the queen bitterly resented,

and whose rashness threatened to frustrate her plans

and ——————— the lives of her family.

(a) imperils (b) endanger (c) hazard

(d) jeopardy (e) expose

36. In the question in blank [J] given below, an idiomatic use

has been given, which has to be improved in the context

of the paragraph. If the expression is correct as it is, your

answer will be (e) i.e. No Correction Required.

a) Scores of wealthy people fell against a Ponzi scheme run

by Bernie Madoff that collapsed in 2008.

b) Scores of wealthy people fell for a Ponzi scheme run by

Bernie Madoff that collapsed in 2008.

c) Scores of wealthy people fell about with a Ponzi scheme

run by Bernie Madoff that collapsed in 2008.

d) Scores of wealthy people fell upon a Ponzi scheme run

by Bernie Madoff that collapsed in 2008.

e) No correction required

37. In the blank [K] given in BOLD in the above paragraph, a

part of the sentence is missing, which along with other

four sentences is given below. Find that part.

a) rendering them far much vulnerable to panics than banks

and many hedge funds.

b) allowing them far little exposed to panics than banks and

many hedge funds.

c) making them far more prone about panics than banks and

many hedge funds.

d) making them far less vulnerable to panics than banks and

many hedge funds.

e) making them far least insure for panics than banks and

many hedge funds.

38. In the blank [L] given in BOLD in the above paragraph,

sentence 1 as the STARTER of the paragraph has been

given. Rest of the sentences have been given in a

jumbled order. You are required to choose the correct

order from the sequences given below.

1. The second worry is that family offices could magnify the

power of the wealthy over the economy.

A. The family-office industry is less concentrated than

mainstream asset management, which a few firms such

as BlackRock dominate.

B. But the aim is usually to diversify risk, not concentrate

power, by taking capital from the original family business

and putting it into a widely spread portfolio.

C. Compared with most fund managers, family offices have

welcome habits, including a longer-term horizon and an

appetite for startups.

D. This is possible: were Bill Gates to invest exclusively in

Turkey, he would own 65% of its stockmarket.

(a) DABC (b) CDBA (c) ADBC

(d) ABCD (e) DCBA

39. The sentence given in [M] has four words given in BOLD.

Among the given bold words, which of the following

must replace each other to make the sentence

contextually correct and meaningful?

a) privilege — schemes

b) schemes — evidence

c) evidence — privilege

d) evidence — outperform

e) No replacement required

40. In the passage given, a sentence [N] is given in BOLD.




answer.

a) Family offices are becoming much complex—a third have

at least two branches—making tax wheezes easier.

b) Hungry brokers and banks are rolling out the red carpet

and pitching deals with unlisted firms that are not

available to ordinary investors.

c) If all this did lead to an entrenched, unfair advantage, the

effect,

d) when compounded over decades, would make wealth

inequality disastrously worse.

e) No error.

Documents

710 SBI CL MN - ramsir.inramsir.in/blog/wp-content/uploads/2019/05/SBI-CL-MAINS-710.pdf · be a part of forex reserves for three years, it can be used by the RBI in market interventions,