Pre Examination Training for

SC/ST and Minority Candidates:

English - Set 4
Directions (1 - 10): Read the following passage carefully and answer the
questions that follow:

The Goldman Sachs Group, Inc. global investment banking, securities and investment
management firm has agreed to pay $5 billion to the US government, one of the largest
regulatory penalties in its history, to compensate for the firm’s sale of mortgage bonds
which resulted in the 2008 financial crisis. A government inquiry established how the
firm sold bonds tied to residential mortgages, and banks deceived investors by
misrepresenting the quality of underlying loans. Earlier, Bank of America, Chase and
Citigroup agreed to a similar settlement.

There are lessons to learn here for the government, judiciary, market regulator, banks,
and asset reconstruction companies (ARCs). The Indian economy
was cocooned from the crisis in 2008, because of its strong banking system. The
strength of banks emanated from government surety. But as we put in place a reform
process in banking, there is a need to strengthen the system further. Parking the
problem of non-performing assets (NPA) of banks in ARCs does not mean a solution
has been found. ARCs’ traditional role is to turn underperforming assets profitable. It
is a challenge fraught with pitfalls. Especially when the human resource managing
them in India is not exposed to risks. The Securitization and Reconstruction of
Financial Assets and Enforcement of Security Interest Act, 2002 was to help banks
use it to recover NPAs. It also ensures that asset management companies will act as
intermediaries between promoters and the trust. The scope of this must be widened
to bring in more responsibility for both ARCs and banks.

Goldman Sachs, Citigroup, Chase and Bank of America were supposed to do the
same. But when they faltered, there was no mechanism of checks and balances in the
system. That led to the crisis. What made the crisis worse for the investor was the long
process of adjudication. In India, with growing distressed debts and securitization,
they could be the future asset instruments for investors. There is a need for the
government to watch closely the functioning of more than a dozen ARCs. It is also
imperative, that a more robust legislation is put in place to protect investors. At the
same time, there is a need for educating investors.

1. According to the passage, which of the following resulted in 2008 financial crisis?
a) Goldman Sachs securities

b) US government’s securities

c) Goldman Sachs mortgage bonds

d) US government’s mortgage bonds

e) None of the above

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2. A government inquiry established the root cause of the 2008 financial crisis were:
a) Commercial mortgages

b) Residential mortgages

c) Reverse mortgages

d) Pension mortgages

e) None of the above

3. Which of the following has not been listed in the passage that made mistakes during
the 2008 financial crisis?
a) Asset reconstruction companies (ARCs)

b) Non-Banking Financial Institutions (NBFCs)

c) Government

d) Market regulator and Banks

e) Judiciary

4. The Asset Reconstruction Companies’ (ARC’s) main role to perform was:

a) Convert profitable assets into NPAs

b) Convert unprofitable assets into NPAs

c) Convert performing assets into NPAs

d) Convert NPAs into performing assets

e) None of the above

5. What does the term ‘Securitization’ mean in the passage?

a) Transforming illiquid asset into a security

b) Transforming liquid asset into a security

c) Transforming security into an illiquid asset

d) Transforming security into an liquid asset

e) None of the above

Directions (6 - 7): The following questions have a word highlighted from the
passage with four words following it. Choose the best word that matches the
meaning of the highlighted word as your answer.

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6. Underlying
a) Straight

b) Latent

c) Misleading

d) Deceptive

e) None of the above

7. Fraught
a) Container

b) Empty

c) Filled

d) Scarce

e) None of the above

Directions (8 - 10): The following questions have a word highlighted from the
passage with four words following it. Choose the best word that is opposite in
meaning to the highlighted word as your answer.

8. Cocooned
a) Wrapped

b) Moth

c) Doomed

d) Uncovered

e) None of the above

9. Emanate
a) Emerged

b) Held

c) Discharged

d) Issued

e) None of the above

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10. Adjudication
a) Determination

b) Conclusion

c) Initiation

d) Abduction

e) None of the above

Directions (11 - 15): Rearrange the following sentences (A), (B), (C), (D), (E) and
(F) to make a meaningful paragraph and then answer the questions which
follow.

(A) The government clearly has a duty to fulfill the right mandated to children in our
Constitution.

(B) If this trend continues, many government schools may have to be wound up.

(C) Data available with the Department of Public Instruction (DPI) and the Sarva
Sikhsha Abhiyan confirm that the number of schools with zero admissions have been
on the rise in the country.

(D) The amicus curiae appointed by the Supreme Court submitted that the
Telangana government has been dilly-dallying on filling up teachers’ vacancies in the
State.

(E) For example, last year, not a single student enrolled in Class I in 534
government schools in Karnataka.

(F) However, Telangana is not the only state where education in government
schools is neglected. It’s an all-India phenomenon.

11. Which of the following sentence should be the 4 th after rearrangement?

a) A

b) E

c) C

d) B

e) D

12. Which of the following sentence should be the 3 rd after rearrangement?

a) C

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b) E

c) B

d) A

e) D

13. Which of the following sentence should be the 5 th after rearrangement?

a) A

b) C

c) D

d) E

e) B

14. Which of the following sentence should be the 2 nd after rearrangement?

a) F

b) B

c) D

d) A

e) C

15. Which of the following sentence should be the 1 st after rearrangement?

a) C

b) D

c) E

d) A

e) B

Directions (16 - 20): In the following passage, there are blanks each of which has
been numbered. For each number, some words are suggested below the
passage, one of which fits the blank appropriately. Find the appropriate words.

The __16__ before the Chinese leadership is to create more jobs at home. According
to reports, the country is __17__ out seven million graduates every year. Their __18__

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is not a comfortable thought for policy makers. So, China needs to go for a __19__
change. How it does is a __20__ dollar, not an RMB question.

16.
a) Challenge

b) Issue

c) Opportunity

d) Storm

e) None of the above

17.
a) Burning

b) Churning

c) Making

d) Dealing

e) None of the above

18.
a) Happiness

b) Forwardness

c) Restlessness

d) Tiredness

e) None of the above

19.
a) Model

b) Modal

c) Module

d) Middle

e) None of the above

20.

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a) Billion

b) Million

c) Trillion

d) Thousands

e) None of the above

Directions (21 - 25): Each question below has a blank indicating that something
has been omitted. Choose the set of words for the blank which best fits the
meaning of the sentence as a whole.

21. RBI eased the pressure on banks by ________the list of companies whose loans
need to be provided for against the risk of default.
a) Accepting

b) Including

c) Pruning

d) Involving

e) None of the above

22. MUDRA bank provides loans at low rates to ________finance institutions and
non-banking financial institutions which then provide credit to MSMEs.
a) Mini

b) Micro

c) Major

d) Macro

e) None of the above

23. Union government is set to issue universal identity cards to the physically
_________with the objective of providing them easy access to various benefits being
extended by the government.
a) Balanced

b) Challenged

c) Managed

d) Handled

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e) None of the above

24. According to the International Monetary Fund, China and India have grown rapidly
and reduced poverty sharply; however, this impressive economic performance has
been ________ by increasing levels of inequality.
a) Opened

b) Closed

c) Neglected

d) Accompanied

e) None of the above

25. Consumer loans became cheaper with banks moving to a new way of setting
lending rates following RBI’s __________ to ensure faster and effective transmission
of its policy rate cuts to borrowers.
a) Dictate

b) Diktat

c) Documentary

d) Dialect

e) None of the above

Directions (26 - 30): In each of the following questions there are four parts a, b,
c and d, among which one part is erroneous. Find out which part of the sentence
has an error and mark ‘e’ if no error is found. Ignore punctuation errors.

26. She danced (a)/ very well (b)/ on the dance floor (c)/ isn’t it? (d)

27. A successful woman (a)/ is any that (b)/ maintains a good balance between (c)/
her professional and personal lives (d).

28. My sister is (a)/ appreciated by (b)/ her friends for (c)/ her honestness (d).

29. She has started (a)/ to learning (b)/ Mathematics through a (c)/ correspondence
course (d).

30. My Professor suffered (a)/ from the illusion (b)/ that I was a (c)/ Science student
(d).

Directions(31-35): A sentence with two blanks is given, each blank indicating

that something has been omitted. Choose the words that best fit the meaning
of the sentence as a whole.

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31. In the ______ of its journey of 139 years, this newspaper has remained
contemporary yet classic by effecting periodic design changes and taking a lead to
______ new technology without compromising its core values that are intrinsically
wedded to the cardinal principles of journalism.

A. beauty, follow
B. totality, adapting
C. era, grab
D. entirety, embrace
E. whole, clasp

32. In the early 2000s, dozens of the world’s premier experts on sports-related
concussions started meeting to _______ studies about concussions, with plans to
issue a consensus set of guidelines on how best to _______ and deal with the
condition.

A. review, identify
B. ponder, debate
C. brood, establish
D. concentrate, organize
E. grasp, distract

33. PM Modi’s hectic external engagements were to ___________ the notion that a
former Chief Minister with little diplomatic experience could not make it to the high
table as well as counter a campaign by pro-Congress intellectuals to _____________
him a visa to travel to the West because of his so-called role in Gujarat riots.

A. dispel, deny
B. scattered, approve
C. join, deny
D. dismiss, agree
E. congratulate, grant

34. If a startup founder could peer 8 years into the future and see a company that has
become the symbol for ______ culture, one that has raised over $8 billion on a
valuation of $67 billion, that has a worldwide presence in hundreds of cities, millions
of app downloads, 12,000 full time employees and thousands more working for your
service, ________ are they would start it.

A. Disruptive, Chances
B. Vibrant, Excuses
C. Extinct, Possibilities
D. Big, Probabilities
E. None of the above

35. Brokerage houses have given a mixed response to the consumer goods sector,
with most saying GST taxes are neutral to positive, ____ that since many companies
enjoy excise duty exemption, clarity is ____ on these in the excise-free zones under
GST.

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A. Saying, Expected
B. Speaking, Demanded
C. Separating, Desired
D. Adding, Awaited
E. Separating, Awaited

Directions(Q36-38): The given question has a statement with two highlighted

words/ phrases. Choose the most appropriate option from the given alternatives
which can help replace the highlighted words to make the statement
grammatically and logically correct. If the given sentence is correct as it is, mark
'no correction required' as the answer.

36.The remuneration for the services offered by the veterans is affectionate when
compared with the monetary aspirations in other job sectors.
A. affiliate, probations
B. disproportionate, compensations
C. variable, policies
D. irrelevant, relevance
E. No correction required

37. Recordings of the financial data made it clear that the recurrence in the economy
has very little to do with the hopes taken by the financial experts.
A. heightening, proposals
B. breakout, offers
C. flattening, drapes
D. improvement, measures
E. No correction required

38. Recovering from the drought was very difficult in itself, but when the bankers
started to act stringently for loan recovery, the farmers were distraught.
A. inspiring, reluctantly
B. disgusting, laxly
C. important, proportionately
D. easy, strictly
E. No correction required

Directions(Q39-40): Five statements labelled A, B, C, 1 and 2 are given below.

Among them, statements A, B and C are in the correct order. Identify the
positions of 1 and 2 so as to make a logically coherent paragraph.

39.
A) It is disconcerting to see that, in recent times, serious questions are being raised
about India’s secularism.
B) It is for the first time since Independence that the Hindu Rashtra ideology is being
talked about so openly, defiantly and persistently.
C) The Supreme Court itself has expressed apprehensions in this regard
1. India’s survival as a multireligious, multilingual, multiracial, multicultural society will
depend on how successful it is in working its secularism.
2. It opines that the country with the legacy of a successful secular fabric, faces the
perils of losing one of her much-cherished credentials.

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A. 21ABC
B. 12ABC
C. 2ABC1
D. ABC12
E. 1ABC2

40.
A) This has led to a growth of regionalism in the country where every region thinks it
in terms of the number of regional political parties in different parts of the country.
B) These regional parties have a special appeal for the peoples of their areas.
C) They are thus able to send a sizeable chunk of their representatives to the Lok
Sabha and the Rajya Sabha.
1) India is a land full of diversities and the people in different states of the country have
their own ways of life, their languages and political views.
2) Every state contributes a limited number of representatives to the Lok Sabha.

A. 21ABC
B. 12ABC
C. 2ABC1
D. ABC12
E. 1ABC2

Answers with Explanations

1. Answer: c)
Explanation: The first line of the passage clearly states that the Goldman Sachs
Group, Inc. has agreed to pay $5 billion to the US government to compensate for the
firm’s sale of mortgage bonds which resulted in the 2008 financial crisis.

2. Answer: b)
Explanation: The first paragraph clearly states that a government inquiry established
how the firm sold bonds tied to residential mortgages, and banks deceived investors
by misrepresenting the quality of underlying loans.

3. Answer: b)
Explanation: The second paragraph clearly states that from 2008 financial crisis there
are lessons to be learnt by the government, judiciary, market regulator, banks, and
asset reconstruction companies (ARCs).

4. Answer: d)
Explanation: The second paragraph clearly states that Asset Reconstruction
Companies’ (ARC’s) traditional role is to turn underperforming assets profitable.

5. Answer: a)
Explanation: Securitization is the process of taking an illiquid asset, or group of assets,
and through financial engineering, transforming them into a security. A typical example
of securitization is a mortgage-backed security (MBS), which is a type of asset-backed
security that is secured by a collection of mortgages.

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6.Answer: b)
7. Answer: c)
8. Answer: d)
9. Answer: b)
10. Answer: c)

11. Answer: d)
12. Answer: b)
13. Answer: b)
14. Answer: a)
15. Answer: b)

Explanation for 11-15: The proper sequence of sentences to make a meaningful

paragraph will be ‘DFEBCA’:

D. The amicus curiae appointed by the Supreme Court submitted that the Telangana
government has been dilly-dallying on filling up teachers’ vacancies in the State.

F. However, Telangana is not the only state where education in government schools
is neglected. It’s an all-India phenomenon.

E. For example, last year, not a single student enrolled in Class I in 534 government
schools in Karnataka.

B. If this trend continues, many government schools may have to be wound up.

C. Data available with the Department of Public Instruction (DPI) and the Sarva
Sikhsha Abhiyan confirm that the number of schools with zero admissions have been
on the rise in the country.

A. The government clearly has a duty to fulfill the right mandated to children in our
Constitution.

16. Answer: a)
17. Answer: b)
18. Answer: c)
19. Answer: a)
20. Answer: b)

21. Answer: c)
Explanation: As per the meaning of the sentence, the word ‘pruning’ fits in the blank
which means to cut away dead or overgrown branches or stems, especially to
encourage growth.

22. Answer: b)
Explanation: A microfinance institution is an organization that offers financial services
to low-income populations.

23. Answer: b)
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Explanation: As per the meaning of the sentence, the word ‘challenged’ fits in the blank
which means that someone or something is lacking or deficient in specified respect.

24. Answer: d)
Explanation: As per the meaning of the sentence, the word ‘accompanied’ fits in the
blank which means to be present or occur at the same time as something else.

25. Answer: b)
Explanation: Diktat means an order or a decree imposed by someone in power without
popular consent.

26. Answer: d)
Explanation: Replace ‘isn’t it?’ by ‘didn’t she?’

27. Answer: b)
Explanation: Replace ‘any that’ by ‘someone who’.

28. Answer: d)
Explanation: Replace ‘honestness’ by ‘honesty’.

29. Answer: b)
Explanation: Remove ‘to’ from the sentence.

30. Answer: b)
Explanation: Replace ‘illusion’ by ‘delusion’

31. Ans. D. The sentence is about a newspaper journey of 139 years. During these
years the newspaper has changed with upcoming trends by adapting and embracing
the new technological changes yet it never compromised with its core value. The first
word must mean 'the whole'. The second word must mean 'to accept and adapt'.
Therefore, option D is apt. 'Entirety' means the whole of something and embraces
means to an act of accepting something willingly or enthusiastically.
32. Ans. A. The first blank is followed by the word "studies", and no other word but
"review" can fit before it while conveying a correct sense. In order for a condition to be
dealt with, it needs to be identified first. Hence, option A is the correct answer.
33. Ans. A. Dispel- to make (a doubt, feeling, or belief) disappear. The term, hectic
external engagements shows the PM's hard work and is a positive point. The segment
after the blank (Chief Minister with little diplomatic experience could not make it to the
high table...) points out a negative thing about the PM. So, the positive point that
prevails in the present would negate a negative point of the past. Hence, either 'dispel'
or 'dismiss' can fit in the first blank. A visa cannot be agreed to someone, hence option
D gets eliminated. "Deny" fits appropriately in the second bank. Hence, option A is the
correct answer.
34. Ans. A. The second part of the sentences conveys the idea that seeing the thrust
of the startup with respect to employment, app download, presence in cities, the
founder would start the project. the only word that will fit in the blank and make the

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sentence grammatically correct is chances.though the word probabilities convey the
meaning same as 'chances', but given the choice of diction, we should choose
chances. The first part of the sentence conveys the idea that the idea of the startup
founder is expected to bring in positive results. Disruptive means innovative or ground
breaking. Hence the correct answer is option A.
35. Ans. D. The given sentence talks about the mixed responses given by brokerage
houses. Since "saying" has been used once in the sentence, "adding" can be used as
a connector to state another response. The usage of "saying" will make the sentence
redundant, while "speaking" would be grammatically incorrect. "Awaited" fits
appropriately in the second blank, indicating that there is still no clarity excise duty
exemption. Thus, option D is the correct answer.
36. Ans. B. The statement tries to compare the salaries of the soldiers with those of
the other professionals and focuses on the disparities in the same. Corresponding to
the context 'disproportionate' and 'compensations' are the most suitable words.
Disproportionate highlights the disparity and compensation lays stress on the subject
being discussed. So, option B is correct.
37. Ans. D. Out Of all the available options, only ‘improvement’ and ‘measures’ satisfy
the context of the sentence by replacing the irrelevant words in the sentence. The
sentence means that the recordings of the financial data showed that the improvement
in the economy has little relation with the measures taken by the financial experts. So,
option D is correct.
38. Ans. E. No correction required.
39. Ans. E. Statement 1 should be the opening sentence of the series. It lays down
the theme of the passage which is the successful running of the Indian state and
society being dependent on the ideals of secularism. It is followed by A which
highlights the existing situation of secularism coming under the scanner and questions
being raised against its credibility. B elaborates on what is stated in statement A. The
unpleasant situation being noticed for the first time ever since independence is the
idea of a Hindu Rashtra being openly mooted. C and 2 form a pair. C states that the
Supreme Court has expressed its ‘concerns’ with the rising threat to secularism. The
issue mentioned here is the apprehension with respect to the continuation of the
successful working of Secularism. Statement 2 lays down the actual ‘concern’ around
which the Supreme Court has expressed itself, i.e. the threat and danger of losing the
ideals of secularism. Also, the usage of the pronoun "it" indicates that the Supreme
Court is being talked about. Hence, the correct sequence is 1ABC2 and option E is
the correct answer.
40. Ans. B. The given passage talks about how the diversity in India affects the political
scenario in the country. This concept of diversity is well described in statement 1
making it the introductory sentence of the passage. And it leads to how states
contribute to the political make up in the country. This makes statement 2 the second
sentence of the passage. Hence, the correct sequence is 12ABC and option B is the
correct answer.

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