Reading Comprehension Questions for banking and insurance examinations.
Reading Comprehension – English Language
Reading comprehension (RC) is among the highest section of Banking/Competitive examinations. So what makes it the most favored section in english:
- Its asked in every paper
- You don’t need prior knowledge to solve RC questions.
- It takes time to solve but there is a 80-90% accuracy.
- Due to its high accuracy and repetition, it acts as a game changer in clearing sectional cut off in english section of all banking and insurance examinations.
- From this section maximum 10 questions will come in every examination.
- Skim through the paragraph quickly to understand what the author is saying and also make notes of what sections of the comprehension talks about what ideas. This will help you find answers quickly after you have read the questions.
- Remember questions and information in the passage is linked. This means first question will have relevance in the first paragraph and so on.
- For finding the gist (main idea) of passage, read the first and last paragraph of the passage.
- Time Saving Strategy: Do not try to attempt a question which is difficult to understand, or the answer to it is not easily traceable in the passage.
- Never use past knowledge about the topic to answer any questions.
- If a question asks about a particular line then read at least 2 sentences before and after the line in question. This will help you understand the idea of where the point started and where the author is going with it.
- Antonym & synonym based questions can be solved by noticing how the word is used in the sentence. Since a word can have multiple meanings, there can be more than one choice that gives the correct answer but only one choice will fit the word in the particular context.
- Improve your reading speed. Read articles in newspaper and practice speed reading tips. You can check speed reading tips here: Speed reading – WikiHow
- Avoid extreme answers.
Now apply this knowledge to answer the questions below.
Reading Comprehension Questions and Quiz:
Directions: Read the passage carefully and answer the questions given below it. Certain words/phrases are given in bold to help you locate them while answering some of the questions.
India’s banking sector may be getting ready for a wave of consolidation as the country tries to build institutions of world class proportions. Four big state run banks – State Bank of India, Punjab National Bank, Bank of Baroda and Bank of India – have already begun on exercise to identify takeover targets to gain access to franchises that would augment their capabilities, said three top bankers familiar with the move. The top managements of the four banks are in the process of preparing a blueprint that would explain the rationale for absorbing one or two entities, said the people cited above, none of whom wanted to be named. Employees at these state run banks are engaged in the exercise after Finance Minister Arun Jaitley gave the lenders the go-ahead to decide how they would strategiese to remain relevant in the emerging economic scenario.
“We are hearing from the corridors of finance ministry that there is seriousness on consolidation of banks,” said an executive from one of the top four banks. “The sense we are getting is that first there could be merger of at least one SBI associate bank with SBI to kick off the consolidation process.” Although no names of likely acquisition targets are being discussed at these four banks, the key conditions for a smaller bank will be regional, technological and cultural advantages. For instance, a bank such as Bank of Baroda, which does not have a presence in the East, may prefer one from that part of the country. State run banks have weakened over the years as governments have treated them as an organ of the administration and used them to push their social agenda. Meanwhile, lenders in neighbouring China have acquired scale while those in India are puny by comparison, giving them little clout in global markets.
The economic downturn, with growth having almost halved from the peak, has exposed the fault lines in the system. The parlous financial position of the government has left banks capital starved – the allocation for this year is tiny compared with the amount needed to meet Basel III standards. And, to access capital from the market, the state run banks need a strategy to turn more profitable. Currently, they are labouring under bad debt on account of companies finding it difficult to repay loans because of the slump.
“Government has made it clear that they will not give any capital,” said one of the bankers. “Banks that have the capital and the capability to raise capital could look at acquisitions,” he said, while adding “Nothing has reached the drawing board. Banks are only doing all kinds of permutations and combinations.” To be sure, state run bank consolidation has been discussed for nearly a decade, but little progress has been made, except for shotgun weddings that were aimed at rescuing ventures in poor shape. Inertia among banks, cultural issues and fears of trade union unrest held up any such move. That may now change with the new government.
“There have been some suggestions for consolidation of public sector banks,” Jaitley said in his July 10 Budget speech. “Government, in principle, agress to consider these suggestions.” A committee set up by the Reserve Bank of India under former Axis Bank Chairman P.J. Nayak had suggested that the health of state run banks was poor. To strengthen them, the report said it would be better “either to privatise these banks and allow their future solvency to be subject to market competition, including through mergers; or to design a radically new governance structure for these banks which would better ensure their ability to compete successfully, in order that repeated claims for capital support from the government, unconnected with market returns, are avoided.”
The market share of the public sector banks is forecast to decline from 80% in 2000 to just over 60% in 2025, Nayak had said. They stack up poorly in many respects against non-state institutions. For instance, net profit per employee at the new private sector banks was about four tiems that of the SBI Group in the year ended March 2013.