Reading Comprehension Quiz -Set -21 : IBPS PO | IBPS RRB 2017

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Reading Comprehension Quiz

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Q.Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions.

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As bankers carry out the second leg of India’s ambitious demonetisation exercise, economists have begun to crunch data to estimate the potential revenue gains to government. Unaccounted income and wealth, or black money, places an unfair burden on honest citizens. A modern state calls for a sophisticated administrative architecture which generates revenue for its activities. If a significant part of economic activity lies beyond government’s gaze, an unfair burden is imposed on honest tax payers. Therefore, demonetisation can catalyse long term reform and gains of a well-executed exercise can be significant.

Demonetisation will affect about 86% of total currency in circulation, amounting to Rs 14.6 trillion. According to a World Bank estimate the parallel economy makes up about one-fourth of the total. Assuming the same incidence of black money held as cash will come into the banking system to be replaced, government has an opportunity to utilise the resultant trail to boost its tax collections. It is not merely a one-time gain as a trail can bring hitherto unaccounted economic activity into the system. The size of the parallel economy can be brought down.

The battle against black money is worth it if resultant revenue gains are efficiently utilised. One, as the size of the parallel economy shrinks, the tax base will automatically widen. This will allow government to reduce rates and boost consumption. Two, additional revenue will allow government to enhance the efficacy of welfare schemes. Here, the best way forward is to actualise the idea of a universal basic income. The essence of this idea is to transfer a sum of money to all families.

There is a strong case for it in India as the current system of price subsidies has not only led to economic distortions but also targeted beneficiaries are seldom reached. If additionally generated revenue can be directly distributed to people across the country, using Aadhaar and the JAM trinity whose elements are already falling into place in order to prevent duplication and leaks, it could be the greatest single poverty reduction measure ever in the country. Any political dispensation that is able to implement this will have the gratitude of people for at least a generation. It is this end goal which can give salience to the current demonetisation drive.

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1.According to the passage, what can be the greatest single poverty reduction measure ever in the country?

1. Distribution of additionally generated revenue directly to the people across the country.
2. Government reducing rates and boosting consumption.
3. Bringing the size of the parallel economy down.
4. None of the above.
5. All of the above.

2. According to the passage, when it can be said that the fight against black money will produce results?

1. When the sum of money is transferred to all families.
2. Using Aadhaar and the JAM trinity.
3. If resultant revenue gains are efficiently utilized.
4. None of the above.
5. All of the above

3. According to the passage, how much does the parallel economy make up with respect to the Indian economy, as estimated by the World Bank?

1. One-half
2. One-third
3. One-fourth
4. One-fifth
5. None of the above

4. According to the passage, what does a modern state require?

1. Poverty reduction measures
2. Smooth administrative architecture which generates revenue for its activities.
3. Bringing unaccounted economic activity into the system.
4. Actualising the idea of a universal basic income.
5. All of the above

5. According to the passage, how the increasing tax base would help the government?

1. Reducing poverty
2. Ending of the parallel government
3. Formation of a sophisticated administrative architecture
4. None of the above.
5. All of the above

6. According to the passage, why the current system of price subsidies has not been very beneficial?

1. It has led to economic distortions.
2. Targeted beneficiaries are seldom reached.
3. Size of the parallel economy is not shrinking.
4. All of the above.
5. Only options 1 & 2

7.Choose the word which is MOST similar in meaning to the word printed in bold as used in the passage. Distortion

1. Mismanagement
2. Malformation
3. Dilapidated
4. Deficient
5. Deprived

8.Choose the word which is MOST SIMILAR in meaning to the word printed in bold as used in the passage. Catalyse

1. Previous
2. Commemorate
3. Condemn
4. Breed
5. Caress

9.Choose the word which is MOST opposite in meaning to the word printed in bold as used in the passage. Sophisticated

1. Naïve
2. Clueless
3. Generic
4. Open-minded
5. Sanitised

10.Choose the word which is MOST opposite  in meaning to the word printed in bold as used in the
passage. Shrinks 

1. Concise
2. Precise
3. Extend
4. Brief
5. Forge

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Correct Answer:

1. Distribution of additionally generated revenue directly to the people across the country. [ Refer to the 2^nd sentence of the 4^th paragraph.]
2. If resultant revenue gains are efficiently utilized. [Refer to the 1^st  sentence of the 3rd paragraph]
3. One-third. [ Refer to the 2nd sentence of the 2nd paragraph.]
4. Smooth administrative architecture which generates revenue for its activities. [ Refer to the 3^rd sentence of The firs tparagraph.]
5. None of the above. [ Refer to the 3rd sentence of The 3rd paragraph.]
6. Only options 1 & 2 [Refer to the 1st sentence of the 4th paragraph.]
7. Malformation
8. Breed
9. Naive
10. Extend

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