IBPS PO V Preliminary Exam Reading Comprehension Exercise (4th October 2015 - 1st Shift)

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IBPS PO V Prelims Previous Paper

Directions (1 - 10) : Read the following passage carefully and answer the questions given below it. Certain words/phrases have been given in bold to help you locate them while answering some of the questions. 

There is good news in the form of Europe's unemployment falling from 11.1% in June to 10.0% in July. But unemployment generally lags behind the economic cycle. Business surveys, which provide more up-to-date readings of activity, point to a continuing subdued recovery in Europe. The European commission's long-running economic-sentiment indicator, which combines business as well as consumer confidence and tends to track GDP has been broadly stable since picking up in early 2015. This suggests that the Euro area is not about to break out of its unspectacular growth. This is worrying because the euro-zone economy is benefitting from a powerful triple stimulus. Lower energy costs caused by the slump in global oil prices have been providing the same effect as a tax cut.

A big programme of quantitative easing (QE), has been under way since, early in the year under which the European Central Bank (ECB) is creating money to buy 60 billion ($67 billion) of pound's each month. As well as pushing down long-term interest rates QE has helped to keep the euro down on the currency markets to the benefit of exporters. Given the extent of help that the euro area has been getting, growth should be faster. The sluggish performance leaves it vulnerable to China's slowdown. A particular worry is the impact of weakening Chinese growth on Germany, the hub economy of the region, whose resilience has been crucial in sustaining Europe since the euro crisis started five years ago. One reason has been strong Chinese demand for traditional German manufacturing strengths. Even though German exports appear to be holding up for the time being, that boost from China is waning. Lacklustre growth in the euro area will in turn make it hard-er for the ECB to meet its goal of pushing inflation back towards its goal of almost 2%. Although core inflation (excluding in particular energy and food) has moved up from its low of 0.6% earlier this year, to 1.0%, headline inflation has been stuck at 0.2% over the summer.

There is increasing concern that the ECB's effort to break the grip of "lowflation" will be swamped by global deflationary effects. The ECB's council is not expected to make a change in policy and is likely to indicate that the ECB recognises the downside risk to growth and stands ready to respond if they materialise. That may in turn produce a policy erasing later this year. One option would be to raise the amount of assets that it is buying each month from the current amount of 60 billion. A more likely decision would be for the ECB to extend the planned length of its purchase some for another year. Whether that is enough is question for an-other day.

1. What is the author's view regarding the reforms implemented by ECB ? 
1. His is outraged that these measures are being continued. 
2. He is doubtful about the reforms as inflation is rising.
3. These reforms are tough and unpopular in Euro countries. 
4. These are not focused and have not been effective at all. 
5. Other than those given as options. 
2. What do the statistics cited in the passage about ECB convey ?
1. Its stimulus package for Europe's economy is too low in value. 
2. ECB is likely to fast run out of 'bailout' funds. 
3. Despite the ECB's best efforts, its reforms have been unsuccessful. 
4. It is time ECB withdraws its stimulus package to rich countries. 
5. ECB has not been proactive in the economic recovery. 
3. Choose the word which is most similar in meaning to the word SUBDUED given in bold as used in the passage. 
1. passive
2. necessary 
3. sleep 
4. diluted 
5. expensive 
4. Choose the word which is most opposite in meaning to the word BROADLY given in bold as used in the passage. 
1. widely
2. barely 
3. softly 
4. responsibly 
5. dimly 
5. Which of the following best describes the conclusion which can be drawn from economic indicators of Europe ? 
1. Investors do not have confidence in European markets. 
2. Germany is the only economy unaffected by the crisis of 2008 and China's slowdown. 
3. Tax rates in Europe are being raised which has hampered growth. 
4. By and large Europe's economic performance is steady but not accelerating.
5. Europe has not taken measures to protect itself from the crisis in emerging markets. 
6. Which of the following is TRUE in the context of the passage ? 
1. Germany's economic performance is linked to the Chinese market. 
2. Europe's large economies have recovered from the global crisis. 
3. Exorbitant oil prices are negating the effects of ECB's stimulus. 
4. Europe's unemployment rate is rising but it may not continue to do so. 
5. None of the given options is true in the context of the passage. 
7. According to the passage, which of the following has affected inflation in Europe ? 
• A) Global deflation is prevailing. 
• B) Frequent rising of ECB's interest rates.
• C) The ECB has withdrawn its Quantitative Erasing programme. 
1. Only (B) 
2. Only (A) 
3. All (A), (B) and (C)
4. All (A) and (C) 
5. Only (B) and (C) 
8. Choose the word which is most opposite in meaning to the word MATERIALISE given in bold as used in the passage. 
1. disappear
2. perform 
3. terrorise 
4. occur 
5. substance 
9. Which of the following is the central idea of the passage ?
1. The European economy is buoyant as its energy and manufacturing sectors are doing well. 
2. Emerging markets have been responsible for Europe's slow economic performance. 
3. The European Central Bank is in denial about the imminent crisis Europe is facing.
4. Europe has reduced its exposure to America and Asia. 
5. The European economy is stagnating leaving it vulnerable to future crises 
10. Choose the word which is most nearly the same in meaning to the word GRIP given in bold as used in the passage. 
1. understanding 
2. authority 
3. awareness
4. clutches 
5. fascination 

Read the Questions of IBPS PO V Preliminary Exam Day 1 (3rd October 2015) from here

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