1). Risk-stemming from fluctuations in exchange rate loans hover constantly on the horizon of foreign investment. 2). In view of the higher risk, a firm contemplating foreign investment would naturally expect a higher rate of return. 3). A multinational company may be accused of 'profiteering' even when it may simply be following the sound financial practice of asking for a higher rate of return commensurate with risks characterizing the project. 4). In addition, a foreign investment is subject to discriminatory treatment and selection control in various forms.
Answer: A 1 introduces the topic risk of foreign investment and 4 continues by explaining further risks, 3 must follow 2 as it illustrates the statement 3.
Q. No. 26:
1). The general impressions that skilled negotiators seem to convey is they are people who keep their cards close to their chest and do not reveal their feelings. 2). Hence, they used a surrogate method- they countered the number of times that the negotiators talked about their feelings or motives. 3). This contrasts sharply with the amount of information given about external events such as facts, clarifications and general expressions of opinion. 4). The results showed that contrary to the general impressions, skilled negotiators are more likely to give information about internal events than are average negotiators. 5). Feelings are in themselves not observable and Huthwaite's researchers could not measure them directly.
Answer: A 5 is in continuation of the 'feelings' factor talked about in 1. 2 is about the research method mentioned in 5. 24 is the experiment and result therefore must follow 15.
Q. No. 27:
1). They argue that it is this, which has led to the bankruptcy in many states. 2). Here was a commission whose members worked very hard, did exemply research and homework, before coming up with a list of recommendations that balanced economic efficiency with safety nets for disadvantaged labour. 3). It reminds us of the political shenanigans during the implementation of the Fifth pay Commission. 4). How many times have you heard experts, politicians and the finance minister refer to the implementation of the pay hikes following the commission's report as the singular cause for the increase in government expenditure? 5). Barring P. Chidambram, who was then the finance minister, every single political party and politician opposed the implementation of the recommendations and are directly responsible for the current fiscal crises in the Centre and the states.
Answer: B 3 introduces the topic of the pay commission and 4 further explains the topic. 25 and 41 are mandatory pairs.
Q. No. 28:
1). Let us take a look at the manner in which the traditional bank adds value to the customer. 2). The ability to retain deposits, in itself, is not enough to ensure long-term survival and growth. 3). The ability to deploy invested funds into productive economic activity at a higher rate of return, hence contributing to the prosperity of both the economy and the institution, is the other loop in the banking cycle. 4). Further, as only a small portion of the actual deposit base is retained with the bank in a liquid form, the very survival of the bank lies in building enough trust with its clientele so as to prevent the occurrence of a sizeable chunk of simultaneous customer withdrawal (a run on the bank). 5). The bank's basic job is risk absorption- it takes money, which has a lot of attached risk, and provides the customer an assured rate of return.
Answer: C The paragraph has to begin with 1, and it is 5(not 2) which explains the purpose of banking. 2 qualifies it further.
Q. No. 29:
1). Over the years, I have had the opportunities to observe and understand the thought processes behind the ads that have been flooding both the print and the TV media. 2). Although there is a huge shift in the quality of ads that we come across on a daily basis-- thanks essentially to improvement in technology--I somehow can't help but feel that the quality of communication of the message has become diluted. 3). Proportionally, the number of ads that lack in quality, have gone up exponentially as well!! 4). There is an increasing attempt by most companies to be seen as cool and funky. 5). Another reason could be the burgeoning number of companies, which means an exponential increase in the number of ads that are being made.
Answer: B As it is an individual explaining his perceptions, it should begin with A.
Q. No. 30:
1). A medical representatives particularly faces constant post call critiques from his manager following double calls. 2). A field person while on duty travels constantly. He has no roof over his head unlike a desk job and hence bears the brunt of the weather. 3). Few of us welcome criticism even when it is well intentioned and constructive. 4). And criticism, if offered in a manner that talks down to the field person and steps on his ego can be greatly demotivating. 5). The manager should judiciously manipulate the situation and help the field person invent his own answers.