What can be a suitable title for the given passage?

1. Clearance to take off for stalled credit 
2. Money infused in banking sector 
3. Relevance of data mining in banking
4. Transmission of monetary policy
5. Offshore rupee derivative markets 

Explanation

The given passage analyses the measures that have been taken to help revive the banking sector and also suggests measures that can help get the credit flowing smoothly once again. Options B, C, D and E are too specific. They have been mentioned in the passage as part of the remedial measures that are to be taken for the stalled credit to take off. Only option A captures the overall essence of the passage and can be a suitable title.  Option A is hence the correct answer.

What is the tone of the passage?

1. Acerbic
2. Vitriolic
3. Indignant
4. Belligerent
5. None of the above

Explanation

Acerbic, vitriolic, indignant and belligerent are tones that correspond to negative passages. However, the given passage is not negative in nature. Hence, options A, B, C and D can be eliminated. Hence, option E is the correct answer.

With which of the following statements would the author most likely agree?

I. One-time settlement policy that will benefit MSMEs is impractical for banks and is unwise.  

II. Banks have not yet developed the required proficiency in judging the sustainability of MSME loans.

III. Banks have made huge investments in data mining.

1. Only I
2. Only II
3. Only I and II
4. Only I and III
5. All I, II and III

Explanation

Statement I : One-time settlement policy that will benefit MSMEs is impractical for banks and is unwise.  
 
The one-time settlement policy has been stated as being pragmatic which means that it is practical and sensible. Hence, statement I is invalid.
 
Statement II : Banks have not yet developed the required proficiency in judging the sustainability of MSME loans. 
 
The author is urging banks to acquire the expertise of assessing MSME loan viability. This implies that he is likely to believe that banks have not yet mastered this skill. Hence, statement II is valid.
 
Statement III : Banks have made huge investments in data mining 
 
The author has urged banks to invest in data mining. If he believed that the banks were already doing so then he would not have given such an advice. This, hence, makes statement III invalid. 
 
Evidently, option B is the correct answer.

According to the passage, what will provide a booster for fresh loans to the MSME sector?

I. Loan waivers and collateral free loans.

II. Increasing additional liquidity support of Rs 20,000 cr by 50%.

III. Joint contribution of credit by PSBs and NBFCs.

1. Only III
2. Only II and III
3. Only I and III
4. All of I, II and III
5. Not mentioned in the passage

Explanation

The moves to support non-banking financial companies (NBFCs) — such as enhancing additional liquidity support to housing finance companies to Rs 30,000 crore by National Housing Bank from Rs 20,000 crore and co-origination of loans by PSBs jointly with NBFCs that are reeling under a liquidity crunch — will provide a booster for fresh loans to the MSME sector. Increasing 20,000 by 50% gives us 30,000 and co-origination of loans refers to joint contribution of credit. Hence, statements II and III are correct. However, nothing has been mentioned about loan waivers and collateral free loans. So the first statement is incorrect. Evidently, option B is the correct answer.

What is the meaning of the idiom “Damocles’ sword”, as used in the passage?

1. Planned fraud
2. Meticulous investigation
3. Imminent danger
4. Careless attitude
5. None of these

Explanation

Damocles’ sword (Idiom):
 
Meaning : Any imminent, impending, or eventual trouble, danger, or disaster. 
 
In Greek mythology, the courtier Damocles was forced to sit beneath a sword suspended by a single hair to emphasize the instability of a king's fortunes.
 
 Example: The new tax law is going to be Damocles' sword hanging over our very business model.
 
Clearly, option C is the correct answer.

By: SONAM SHEORAN