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Mahindra Ltd Verbal Ability

Posted on :08-03-2016
MAHINDRA Verbal Ability

DIRECTIONS for question 1: 
 
Each of the following contains a paragraph followed by a question. As your answer select the best of the options given.

Q1. Developed countries have made adequate provisions for social security of senior citizens. State insurers (as well as private ones) offer Medicare and pension benefits to people who can no longer earn. In India, with the collapse of the joint family system, the traditional shelter of the elderly has disappeared. And a state faced with a financial crunch is not in a position to provide social security. So it is advisable that the working population give serious thought to building a financial base for itself. Which one of the following, if it were to happen, weakens the conclusion drawn in the above passage the most?

A) India is on a path of development that will take it to a developed countrys status, with all its positive and negative implications.
B) The insurance sector is underdeveloped and trends indicate that it will be extensively privatized in the future.
C) 3. The investable income of the working population as a proportion of its total income will grow in the future.
D) If the working population builds a stronger financial base, there will be revival of the joint family system.

ANS: A

Explanation:

If India becomes a developed country, then her citizens will not have to be bothered about their financial base as country would provide social security like all the other developed countries. 


DIRECTIONS for question 2-6:  

Read the passage and answer the questions following each passage

According to TV reports, the Tatas have cut down their commercial production by as much as 40 per cent. It has been said that Ashok Leyland too is looking for customers , it has over two months production lying idle. Unitech, one of Indias biggest builders, has defaulted on the loans taken from the Greater Noida Authority. The firm blames the farmers agitation but there is little doubt that slack in demand is an equally strong reason. There is no doubt that international events have affected Indian industry. Risk aversion techniques, modern computers and communication technologies, were all combined by financial market whizkids to extend more and more unsafe loans to people who would never have received a loan earlier. Once banks realized that they were holding "assets" that were far from deserved that name, they started unloading, leading to a vicious circle: banks wanted money in cash but there was no money in the market to meet those demands, which in turn led to a greater worry and further demand for more money. Several banks have gone bankrupt, leading to the meltdown we have been witnessing in the past few weeks. Keynes said that in a situation like the present, where demand is slack, the government should induce expenditure. "Spend," he said, but the people, particularly those with surplus money, will actually try to save , leading to escalation of the vicious circle. In a country such as India, with people nervous about spending money, the Centre should take courage in its hands and spend on infrastructure. That will lead to increasing budget deficits, and a denial of the Washington Consensus. Washington Consensus was alright when demand was in excess but is inappropriate when demand is slack. However, the public-private partnership, which the Washington Consensus commended, still remains valid. Government rules are not the best for infrastructure development. The Government should enforce laws, establish security and regulate. The rest of the economy, including even primary education and healthcare, is better handled by private enterprise than by the state. Suppose, for example, the government gives developers long-term loans (say, 30 years) at very low rates of interest (say, 0.5 per cent a year) but only for capital expenditure on schools, hospitals, civic infrastructure, roads, rail and air traffic. The developer has to generate on his own the revenue needed for running the business. Then, a large amount of demand will be created which, in turn, will increase further demand for both material goods and services. That way, a virtuous cycle will be set up. Unfortunately, there is a downside to this optimistic picture farmers resistance to surrender land. We are currently ruled by the 1894 law on land acquisition and, as Singur has shown, that is no longer acceptable. In the present Parliament, a new law on land acquisition has been tabled, highlighting mainly the following main issues :The acquirer should buy minimum 70 per cent land at market rates when the government will acquire the remaining land needed future prospects should be factored into the price offered if not used in five years, land must be returned to the government;all persons, including those who did not own land, must be rehabilitated land disputes authority will clear cases within six months. These laws are definitely an improvement on the existing situation and, yet, have their own defects. For example, the proposed Act stipulates that 80 per cent of the capital gains should be handed over to the original landowners or their heirs. After some time, that will be virtually impossible to implement. Similarly, the rule that all persons including those who did not own land should be rehabilitated can become a mistake. Remember, the list of persons who have claimed compensation in the Bhopal disaster have included many who were not by any means affected by it. Apart from undeserving cases, any number of middlemen and do-gooders can crop up making it impractical to do anything meaningful. I have advocated earlier a different version of land acquisition I had suggested (and still suggest) that landowners should be given commercially saleable land, the rent from which is expected to produce an income that is two-three times what the farmers are earning now. The rent is guaranteed for the initial ten years and is also indexed to the price of grain. Then, the farmer is guaranteed as substantial increase in income. I know farmers like it, but administrators and industrialists are skeptical; they fear that farmers will need cash. Some may, but it should be possible to get most of them to accept substantially increased income which is also guaranteed in preference to money. In any case, those who need cash can always sell their entitlements. Instead, economists are relying more or less solely on monetary measures. The Reserve Bank of India has reduced CRR by 250 points and the repo rate by 100 points. Those measures will no doubt inject money into the market but evidence so far indicates that they are not enough. On behalf of the government, Mr. P. Chidambaram has announced that it will try both conventional and unconventional methods but has not explained what "unconventional" methods mean. What the government has done so far is to provide more money to bolster the share market, to raise the Sensex and Nifty. It may be worthwhile for the government to leave the stock market to reach its own level. After all, Indias stock market is barely one or two per cent of the countrys assets. Instead, the government should announce that it will not bother anymore on Fiscal deficit. India can absorb two million houses or more provided the prices are right. Suppose the government gets builders to develop housing estates for relatively poor people by giving them soft loans. Suppose the government gives them also loans for constructing buildings for schools and hospitals. Further, lets assume the government moves away from large cities and gets all such infrastructure developed in small towns. Let, further, the government provide soft loans to builders for constructing buildings for new industries. All these will force the fiscal deficit to shoot up. At the same time, it will create jobs and generate incomes better than the stock market will. Even as the stock market is collapsing, we are witnessing agitations in Tamil Nadu, Maharashtra, Bihar, as also in Kashmir. None of these would have erupted had the Centre nipped the agitations in the bud. Seeking collaboration from one and all, the Centre has steadily weakened itself; it is now so unsure of itself that it takes two steps backward whenever it takes one forward. Let us hope that the Centre will handle the economic situation better than it is doing the political ones. It is hoped that the government will not be tempted to take on the job of developing infrastructure on its own shoulders but let private enterprise do the job. Let us hope also that the government will not make rules rigid, but keep them flexible enough for honest contractors to survive and prosper. However, price is the key. It should be low enough to induce more and more people to buy houses and household goods.

Q2. The fact that international events have affected the Indian economy and led to a slack in demand is borne out by which of the following fact(s)?

A) Unitech defaulting on loans it has taken from Greater Noida Authority
B) Severe slump in demand for the products of both the Tatas and Ashok Leyland
C) Both (1) and (2)
D) None of these

ANS: C

Explanation:

The first three lines of the passage show clearly state the choice 3.


Q3. Many banks in India have gone bankrupt in the recent past because

A) RBI is not making any efforts to support them
B) banks had gone overboard in lending money to people, against so-called assets
C) farmers agitations in many parts of the country have effectively stopped inflow of money into the banks
D) banks did not adopt the Keynesian methods and policies

ANS: B

Explanation:

Refer to the lines,once banks realized that they are holding assets farther demand for more money.


Q4. A virtuous cycle will be created in the economy if

A) banks would continue to lend money generously to people so that they could spend freely on personal purchases
B) the government rehabilitates the agitating farmers
C) the government allows private sector participation in infrastructure development
D) everyone in the society is encouraged to save money in the banks

ANS: C

Explanation:

As stated in the passage, Government rules are not the best for infrastructure that way a virtuous cycle will be set up.


Q5. The 1894 law on land acquisition needs to be re-examined in the present context. This becomes evident from the fact that

A) infrastructure cannot be developed on agricultural land
B) the Singer farmers resisted in surrendering their land
C) the government has no commercially sale able land to give the farmers in exchange of their agricultural land
D) All of these

ANS: D

Explanation:

As mentioned in the lines, we are currently ruled by the 1894 law on land acquisition and, as Singer has shown as, that is no longer acceptable. 


Q6. According to the author, the economic situation of the country would be better if

A) the government attempted to ensure political consensus and collaboration from one and all
B) the government encourages private sector to take on responsibility of developing infrastructure
C) the government manages both political and economic situations with uniform policies
D) the finance minister takes timely measures to bolster the stock market

ANS: C

Explanation:

As the passage reads, It is hoped that the government will not be tempted to take on the job of developing infrastructure on its own shoulders but let private enterprise do the job.


DIRECTIONS for question 7-8:  

Fill in the blanks using the appropriate options.

Q7. The law prohibits a person from felling a sandalwood tree even if it grows on ones own land, without prior permission from the government. As poor people cannot deal with the government, this legal provision leads to a rip-roaring business for ___________ who care neither for the _____________ nor for the trees.

A) middlemen, rich
B) touts, rich
C) the government, poor
D) touts, poor

ANS: D

Explanation:

Since the sentence has a negative tone, the word should be “touts” who do not care for the poor.


Q8. The best punctuation is that of which the reader is least conscious; for when punctuation, or lack of it, __________ itself, it is usually because it _________________.

A) obtrudes, offends
B) conceals, recedes
C) enjoins, fails
D) effaces, counts

ANS: A

Explanation:

The words least conscious are a dead giveaway. Obviously, you become conscious of proper punctuation only if it obtrudes, hinders your flow or shows up prominently. 


DIRECTIONS for question 9-10:  

Identify the best way of writing the sentence against each question in the context of the correct usage of standard written English.

Q9. When one reads the Hindi literature of the twentieth century, you find a striking contrast between the writings of Munshi Premchand and later day writers of popular Hindi fiction.

A) When one reads the Hindi literature of the twentieth century, you find a striking contrast between the writings of Munshi Premchand and later day writers of popular Hindi fiction.
B) When one reads the Hindi literature of the twentieth century, one finds a striking contrast between the writings of Munshi Premchand and later day writers of popular Hindi fiction.
C) When you read the Hindi literature of the twentieth century, one finds a striking contrast between the writings of Munshi Premchand and later day writers of popular Hindi fiction.
D) If one reads the Hindi literature of the twentieth century, you find a striking contrast between the writings of Munshi Premchand and later day writers of popular Hindi fiction.

ANS: B

Explanation:

One would be complemented by one in the objective case. We find this only in option 2. 


Q10. No officer had ought to be put into a situation where he has to choose between his love for his family and the responsibilities accompanying his duty.

A) No officer had ought to be put into a situation where he has to choose between his love for his family and the responsibilities accompanying his duty.
B) No officer should be put into a situation where he has to choose between his love for his family and the responsibilities accompanying his duty.
C) No officer had ought to be put into a situation in which he has to choose between his love for his family and the responsibilities accompanying his duty.
D) No officer ought to be put into a situation in which he has to choose between his love for his family and the responsibilities accompanying his duty.

ANS: D

Explanation:

Had ought is incorrect usage in options 1 and 3. Option 2 changes the tone of the information from imperative to obligatory. 


  
   






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