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IBPS PO Pre : Mini Practice Set – 25(October 3, 2018)

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Dear Aspirants,

We have already launched an exclusive series of Posts under the head, “Mini Practice Set: IBPS PO Pre”. This section will definitely aid your preparation for the upcoming IBPS PO Pre Exam. So, utilize it at the most. All the Best!

Here, the Mini Practice Set-25 for IBPS PO Pre.

Directions (Q. 1-5): Study the following information carefully and answer the questions given below:
Seven family members M, N, O, P, Q, R and S are sitting in a row facing north. There are two couples in the family.
P sits third to the right of the one who is father of sister-in-law of P. Q is brother of R and only one of the two sits at either of the extreme ends of the row. Two persons sit between R and the wife of P. N has only two daughters and S is one of the two.
O is not the sister-in-law of P. R sits on the immediate left of her grandmother. S sits on the immediate left of her nephew. M is grandfather of R. The one who is niece sits second to the left of her father. S is unmarried and her father is M.

1. How is the son of O related to the father-in-law of P?
1) Son
2) Granddaughter
3) Grandson
4) Can’t be determined
5) Daughter

2. Who sits on the immediate right of the one who is grandfather of Q?
1) R
2) P
3) O
4) S
5) None of these

3. If the positions of N and Q are interchanged, then who among the following sits on the immediate right of the one who is daughter of P?
1) P
2) Son of O
3) Niece of N
4) Can’t be determined
5) None of these

4. What is the position of grandson of N with respect to the wife of P?
1) Immediate left
2) Immediate right
3) Second to the left
4) Third to the right
5) Second to the right

5. How is S related to the daughter of grandfather of R?
1) Sister
2) Brother
3) Son
4) Daughter
5) Father

Directions (Q. 6-10): Study the following table carefully and answer the given questions:
Number of students appeared (A) and failed (F) in five departments of university over the years.

Note: Pass students = Appeared students – Failed students

6. What is the total number of failed students from Commerce for the given years?
1) 77
2) 83
3) 68
4) 71
5) None of these

7. What is the ratio of the total number of passed students to the total number of failed students for the year 2013?
1) 139 : 24
2) 329 : 48
3) 90 : 11
4) 325 : 42
5) 377 : 48

8. Which of the following departments has the minimum number of failed students over the years?
1) Medical
2) Fashion
3) Commerce
4) Architecture
5) Biotech

9. What is the number of passed students for all the departments together in the year 2015?
1) 319
2) 329
3) 317
4) 314
5) 315

10. What is the overall percentage of passed students with respect to those appeared in Architecture department for all the years together (rounded off to two digits after decimal)?
1) 87.78
2) 88.24
3) 79.72
4) 86.94
5) 89.78

Directions (Q. 11-15): Read the passage carefully and answer the questions given below it.
The RBI has thrown a variety of time-tested ideas at the bank bad-loan problem in the last three years; but the issue refuses to go away. It first allowed banks to restructure loans. When that didn’t work, asset quality reviews were undertaken to force banks to come clean. Bank managements were then empowered to forcibly evict promoters and take over defaulting firms.
But none of these ideas have managed to make a material dent in NPAs, which now account for 9.1 per cent of all bank loans. It is in this backdrop that the latest Economic Survey has mooted a new idea, PARA, as a solution.
The Public Sector Asset Rehabilitation Agency or PARA will be an independent entity that will identify the largest and most vexatious NPA accounts held by banks, and then buy these out from them. By consolidating problem accounts across banks, the PARA is expected to solve two problems. One, it can effect speedier settlements with borrowers by cutting out individual banks. Two, as a single large lender, it can drive a better bargain with borrowers and take more stringent enforcement action against them. PARA is expected to raise capital for its buyouts by issuing government securities, tapping the capital markets or receiving a capital infusion from the RBI.
In short, PARA is just a new version of the ‘bad bank’ idea that has been doing the rounds for some time now.
The stockpile of bad loans has had several ill-effects on the economy at large. One, with 16.6 per cent of their loan book tied up in stressed assets (bad and doubtful loans), banks have been fighting shy of new lending. This is constraining new investments in projects that can power the economy. Even if the Government were to infuse fresh capital into public sector banks, there’s worry that this may go to write off older bad loans rather than kick-start lending.
Two, public sector banks, which hold over 70 per cent of all deposits, are the worst hit by the bad-loan problem. For some of these banks, the provisions for bad loans have already overtaken operating profits, leaving them short of capital to sustain operations. Three, high NPAs force banks to keep their lending rates high to boost their profits.
Finally, with 40 per cent of the loans stuck with companies who simply do not earn enough profits to service them, simply waiting for the problem to solve itself will not work. This is already telling on private sector investments and GDP growth.
PARA is expected solve all these problems at one stroke, by relieving the banks of their NPAs and expediting ways for the corporate borrowers to settle their debts.
As a depositor, PARA will mean greater safety of your deposits with the tottering public sector banks. As a taxpayer, it is your money that the Centre uses to recapitalise public sector banks when they indulge in big ticket write-offs. By moving large problem accounts to PARA, the government can separate the capital infusion exercise from the clean-up exercise. PARA can raise money from institutional investors rather than looking only to the Government.
As an honest borrower, bad loans weighing on bank balance sheets mean higher interest costs and slower transmission of RBI rate cuts. Once stressed assets are sold to PARA, the RBI can lean harder on banks to pass on its rate cuts.
Every ten years or so, our banks gather a mountain of bad loans and then look to the Government for a parachute. If it’s PARA to the rescue this time around, what will prevent a repeat?

11. What, according to the author, is Public Sector Asset Rehabilitation Agency (PARA) expected to do to raise capital for its buyouts?
1)It can tap the capital market to raise funds.
2)It can seek help from the World Bank and the IMF.
3)It can raise funds by issuing government securities.
4) All 1), 2) and 3)
5) Only 1) and 3)

12. What is/are the job(s) of PARA? Answer in the context of the passage.
(A)To identify the largest and most vexatious NPA accounts held by banks
(B)To purchase the most distressing NPA accounts held by banks
(C)To bargain with the borrowers and take more stringent enforcement action against them
1) Only (A) and (B)
2) All (A), (B) and (C)
3) Only (A)
4) Only (A) and (C)
5) Only (C)

13. What measures were taken to curb the problem of growing NPA?
(A) Bank managements were empowered to forcibly evict promoters and take over defaulting firms.
(B) Asset quality reviews were undertaken to force banks to come clean.
(C) Banks were allowed to restructure their loans.
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) All (A), (B) and (C)
5) None of these

14. Find the incorrect statement on the basis of the given passage.
1)None of the ideas thrown by the RBI could manage to make a material dent in NPAs.
2)Of the total bank loans, 9.1% is NPA.
3)PARA is the latest weapon to fight with the problem of bad loans.
4)Every ten years or so, our banks gather a mountain of bad loans and then look to the government for rescue.
5)None of the above

15. What is/are the negative impact(s) of bad loans on the economy? Answer in the context of the passage.
(A)Bad loans constrain new investment in projects.
(B)Too much of bad loans forces banks to keep their lending ratio high to boost their profits.
(C)Bad loans force the government to infuse money into these banks, which casts negative impact on GDP growth rate.
1) Only (A) and (B)
2) Only (B) and (C)
3) Only (A) and (C)
4) All (A), (B) and (C)
5) Only (C)

Answers:
  1. 3
  2. 1
  3. 2
  4. 5
  5. 1
  6. 4
  7. 2
  8. 4
  9. 1
  10. 5
  11. 5
  12. 2
  13. 4
  14. 5
  15. 1
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