P). The one major cause for the current weakened state of Indian banks is the level and volume of non-performing assets. 1). Yet, the fact remains that the banks allowed themselves to be pressurized into lowering their guard in the one area of business that is and should be their bread and butter of existence- risk assessment. 2). Description such as 'deceased portfolio' and figures running into thousands of crores have all led to treating the problem as a major one-time aberration requiring emergency treatment. 3). The causal explanations - political interference, willful defaults, targeted lending and even fraudulent behaviours by banks - have some grain of truth in them. 4). The problem has not been looked at in its proper perspective. Q). The response from the banks is to concentrate on somehow reducing the amount and number of accounts in this category.
Answer: D 'The problem' in 4 is directly connected to P. 'Description such as .....have led to treating the problem', connects 2 to 4. 'The casual explanation' of 3 continues on 2. 'yet' of 1 sums up the author's comments leading to Q.
Q. No. 56:
P). A major breakthrough on the question of mechanisation in Indian banks came with a significant decision given by the National Industrial Tribunal in 1981. 1). Computers, however, were allowed only for clearing operations, interbranch reconciliation, remittances, foreign exchange dealings, investment management, personnel inventory, payrolls, provident fund, merchant banking and management information systems on credit, budgetory data and annual control returns. 2).The settlements specified that only accounting machines with attached memory modules and not computers, may be used in banks for the purpose of current accounts, deposit accounts, general ledger accounts, and cash credit and loan accounts only in urban and metropolitan areas. 3). Subsequently, in 1983, the Indian Banks Association (IBA) reached an agreement with the staff unions under which electronic ledger posting/accounting machines were allowed to be installed to support specified functional areas in branches, zonal offices, etc. 4). The tribunal gave unequivocal award in favour of the use of computers and other sophisticated machines with the proviso that it should not cause displacement of more than 10 percent of staff. Q). The Reserve Bank of India took a major lead in coordinating the work related to mechanisation in various banks and even helped them in deciding the vendors, software required etc.
Answer: B 'The Tribunal' of 4 continues from P '........in 1983' of 3 leads in on the development. 'The settlement' of 2 follow up the promise of 3 and 'however' of 1 provides the exclusion hinted at in 2.
Q. No. 57:
P). Yahoo and Ebay are two of the most popular consumer sites. 1). Another way is to attack number of hits per day. 2). This information was provided by A.C. Nielson. 3). A.C. Nielson is the world's leading market research firm. 4). Market research is very important to realize the potential of websites. Q). But hits are not a very true indicator of success.
Answer: C First sentence has some information (about Yahoo and Ebay). 2 has the word 'this information', followed by 3 provider of information.
Q. No. 58:
P). Because services are performances, they cannot be inventoried. 1). This is a significant fact of life in a services business demand peaks cannot be accommodated simply by taking goods off the shelf. 2). Conversely, if an airliner takes off with 40 empty seats, the revenue that those 40 seats could have produced, had they been filled, is lost forever. 3). One of the crucial challenges in many service industries is to find ways to better synchronise supply and demand as an alternative to recurring conditions of severe overdemand and underdemand. 4). If an airline has 40 more flight-reservation request than capacity permits, some business will likely be lost. Q). This is easier said that done : demand peaks can occur during certain times of the day (airlines, restaurant), during certain days of week (movies, hair styling), and during certain months of the year (income tax services, beach resorts).
Answer: A "This is significant fact......." of 1 carries on from P. 4 and 2 give examples that follow 1. "This is easier said than done" of Q comments on the 'way to better synchronise supply and demand' promised in 3.
Q. No. 59:
P). There is a story of Rip van Wrinkle, who went to sleep and woke up 20 years later. 1). Not surprisingly, he founded his village changed and was for a while completely disoriented. 2). For years, it was lulled into a sense of complacency by an atmosphere where change was not a challenge. 3). The Indian corporate sector is caught in this Rip van wrinkle syndrome. 4). Fortunately for him, an old lady who had survived through his slumber helped him learn and cope. Q). Perhaps reforms with its dynamism took it by surprise- Indian corporate are still waking up to the new realities of doing business.
Answer: C 'he found' of 1 follows P and logically 2 follows 3. 'it' of 2 refers to 'Indian corporate sector' of 3.
Q. No. 60:
1). A good budget is one which makes a sincere attempt to change the policy environment. 2). Government finances are terminally impaired with uncontrolled fiscal deficits. 3). There are big gaps in perception and capability of managers. 4). Industry too is not ready to deliver growth, should even the government pursue the right policies. 5). The current reforms pace is too slow. 6). The fiscal deficit has deteriorated.